Turkey severance pay calculator 2026: ceiling and net pay
Enter the gross monthly pay with regular benefits and the length of service in years, months and days to see the pay used, gross severance pay, stamp tax and the net amount. Free, no sign-up required.
How is severance pay calculated in Turkey?
Severance pay (kıdem tazminatı) is 30 days' pay for every full year of service under Article 14 of Labour Law No. 1475, the only article of that law still in force, and part years are paid in proportion. The calculator applies these steps:
Pay used = the lower of the gross monthly pay with benefits and the severance pay ceiling
Gross severance pay = pay used × (years + months ÷ 12 + days ÷ 365)
Stamp tax = gross severance pay × 7.59 per thousand
Net severance pay = gross severance pay − stamp tax
The calculation uses the last wage. Article 14 adds the money and money-measurable benefits paid under the contract or the law, so regular items such as meal and transport allowances or contractual bonuses are added at their monthly value; this total is called the "dressed" wage (giydirilmiş ücret). For piece-rate or commission pay, the average pay of the last year over the days worked is used.
Turkey severance pay ceiling 2026
One year's severance pay cannot exceed the maximum retirement bonus paid to the highest-ranking civil servant for one year of service. That amount follows the civil-servant pay coefficients, so it changes every 1 January and 1 July. The Ministry of Labour's calculations give these ceilings for 2026:
| Employment ends | Ceiling per year of service |
|---|---|
| 1 January to 30 June 2026 | TRY 64,948.77 |
| 1 July to 31 December 2026 | TRY 73,729.87 |
The ceiling in force on the termination date applies to the whole period of service. When the dressed wage is above it, the calculator uses the ceiling and shows "Yes" in the "Ceiling applied?" row. The ceiling for the first half of 2027 had not been announced as of 5 November 2026; it will follow the January 2027 civil-servant coefficients.
Worked example
Example: a hypothetical employee with a dressed gross wage of TRY 50,000 a month leaves in October 2026 after 5 years, 6 months and 15 days, for a reason that gives a right to severance pay. The ceiling is TRY 73,729.87 and stamp tax 7.59 per thousand. These are the calculator's default values.
The wage is below the ceiling, so the pay used is TRY 50,000.00. Full years: 50,000 × 5 = TRY 250,000.00. Six months: 50,000 × 6 ÷ 12 = TRY 25,000.00. Fifteen days: 50,000 × 15 ÷ 365 = TRY 2,054.79. Gross severance pay is TRY 277,054.79, stamp tax TRY 2,102.85 and net severance pay TRY 274,951.94.
With a dressed wage of TRY 90,000 and the same service, the ceiling applies: 73,729.87 × the same period gives TRY 408,544.28 gross, TRY 3,100.85 stamp tax and TRY 405,443.43 net.
Is severance pay taxed in Turkey?
Severance pay within the legal limit is exempt from income tax and social security contributions; only stamp tax is deducted.
- Income tax: Article 25/7 of Income Tax Law No. 193 exempts severance pay calculated under Law No. 1475. The 2026 wage income guide of the Revenue Administration (GİB) says the exemption covers the amount up to the civil-servant retirement bonus for the years worked, and anything above it is taxed as wages.
- Extra payments: amounts paid under a mutual termination agreement (ikale) or as job-loss compensation count toward the same limit, so the part above it is taxed as wages.
- Stamp tax: 7.59 per thousand (0.759%) under Stamp Duty Law No. 488.
- Social security: Article 80/b of Law No. 5510, as amended by Law No. 7577 of 2 April 2026, excludes severance and notice pay from the contribution base.
Foreign employees who may also be taxed elsewhere on the payment should check their home-country rules and any tax treaty.
Who is entitled, and which values to enter
Severance pay needs at least one full year of service with the same employer and an ending listed in Article 14: dismissal other than for the breaches of good faith and morality in Article 25/II of Labour Law No. 4857, resignation for just cause under Article 24, leaving for compulsory military service or for retirement, a female employee leaving within one year of marriage, or the employee's death. A resignation without just cause does not give a right to severance pay. The Turkey severance pay guide explains each case.
- Gross monthly pay with regular benefits: the last gross wage plus the monthly value of regular extras.
- Service: full years (at least 1), then months (0 to 11) and days (0 to 30) of service with the same employer.
- Ceiling: the value for the termination date; TRY 73,729.87 for 1 July to 31 December 2026.
- Stamp tax: 7.59 per thousand as of October 2026.
Notice pay is a separate payment with its own tax treatment; the Turkey notice pay calculator works it out.
Frequently asked questions
How many days of pay is severance per year in Turkey?
Thirty days' gross pay, including regular benefits, for each full year of service, with months and days beyond full years paid pro rata. A contract may give more days, but one year's amount can never exceed the ceiling.
What is the severance pay ceiling in Turkey for 2026?
It is TRY 64,948.77 per year of service for employment ending from 1 January to 30 June 2026 and TRY 73,729.87 for employment ending from 1 July to 31 December 2026, according to the Ministry of Labour's calculations.
Do you get severance pay if you resign in Turkey?
Not normally. Resigning gives a right to severance pay only for just cause under Article 24 of Labour Law No. 4857, such as unpaid wages, or in the other cases listed in Article 14, such as retirement or a female employee leaving within one year of marriage.
Is severance pay taxed in Turkey?
Severance pay within the legal limit is exempt from income tax and social security contributions, and only 0.759% stamp tax is deducted. Payments above the limit, including extra amounts under a mutual termination agreement, are taxed as wages.
Do foreign employees get severance pay in Turkey?
Labour law applies to work done in Turkey regardless of the employee's nationality, so the same rules apply. Contracts governed by foreign law and postings from abroad need case-by-case legal advice.
Sources
- Labour Law No. 1475, Article 14 (Turkish) (opens in a new tab)
- Ministry of Labour: severance pay ceiling, January to June 2026 (Turkish) (opens in a new tab)
- Ministry of Labour: severance pay ceiling, July to December 2026 (Turkish) (opens in a new tab)
- Labour Law No. 4857 (Turkish) (opens in a new tab)
- Income Tax Law No. 193 (Turkish) (opens in a new tab)
- GİB: 2026 guide to wage income (Turkish) (opens in a new tab)
- Stamp Duty Law No. 488 (Turkish) (opens in a new tab)
- Social Insurance and General Health Insurance Law No. 5510 (Turkish) (opens in a new tab)
This calculator is general information, not tax, legal or investment advice. Results depend on the values you enter; rates, ceilings and amounts in Turkey change often, so check the date of each figure and the official source, and ask a licensed adviser about your own situation. Sources, checks and corrections: see the editorial policy.
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