Severance Pay 2026: Cap, Calculation, and Current Amounts

Severance pay is a labor receivable paid to the employee when the employment contract is terminated under certain conditions. For 2026, the severance pay cap and calculation principles are determined according to the relevant legislation and official announcements made at the beginning of the year. In calculating severance pay, the employee’s gross wage and additional payments are taken into account. This article provides general legal information; for advice specific to your situation, you should consult a specialist. • The severance pay cap and calculation principles for 2026 are determined by relevant legislation and official announcements. • Severance pay is paid when the employment contract ends, provided certain conditions are met. • This article is for general legal information; for case-specific advice, professional support should be sought.

Severance pay is compensation paid to an employee who has worked for the same employer for at least one year, if the employment contract is terminated for reasons specified by law. Article 14 of the Labor Law No. 1475 forms the main legal basis for severance pay. According to this article, the manner in which the employment contract ends and the duration of employment determine whether the right to severance pay arises. The purpose of severance pay is to protect the employee’s job security and social rights. In practice, when an employee leaves or is dismissed, a payment is made based on the length of service. • Severance pay is regulated under Article 14 of Labor Law No. 1475. • The employee must have worked for the same employer for at least one year. • Severance pay becomes relevant when the employment contract ends for certain reasons.

The severance pay cap is determined annually by the Ministry of Treasury and Finance and published in the Official Gazette. The cap for 2026 will be announced at the beginning of the year. Therefore, it is important to check official sources for the exact amount. The cap refers to the upper limit of severance pay calculated on the gross wage. For employees whose gross wage exceeds the cap, the severance payment is limited to the cap amount. As in previous years, the severance pay cap for 2026 may change. The cap is the same for employees in Ankara and other provinces. • The severance pay cap is set annually by the Ministry of Treasury and Finance and published in the Official Gazette. • The cap for 2026 will be announced at the beginning of the year; official sources should be checked for the exact amount. • The cap represents the upper limit of severance pay calculated on the gross wage.

Severance pay is calculated based on 30 days’ gross wage for each full year of employment. Proportional payment is made for periods exceeding a full year. Not only the basic gross wage but also regular additional payments (such as meal, transportation, bonuses) are considered in the calculation. The total of these payments is called the 'dressed wage.' Apart from stamp tax, no other deductions are made from severance pay. Other taxes and contributions are not applied. • Severance pay is calculated as 30 days’ gross wage for each full year of employment. • Both gross wage and dressed wage (including regular additional payments such as meal, transportation, bonuses) are considered. • No deductions other than stamp tax are made in the calculation of severance pay.

To be entitled to severance pay, the employee must have worked for the same employer for at least one year. Severance pay is not granted for shorter periods. The reason for termination of the employment contract is also important. Severance pay is granted in cases such as unfair dismissal by the employer, military service, retirement, or marriage (for female employees). In general, resignation does not entitle the employee to severance pay, but there are exceptions such as justified termination. The process for claiming severance pay begins after the employment contract ends. The employee may request payment from the employer; in case of dispute, mediation and legal remedies are available. • The employee must have worked for the same employer for at least one year. • Severance pay is granted in cases such as unfair dismissal by the employer, military service, retirement, or marriage (for female employees). • Generally, resignation does not entitle the employee to severance pay, but there are some exceptions.

When calculating severance pay, gross wage, additional payments, and total length of service are considered. This calculation determines the total amount the employee is entitled to. For example, for an employee with a gross wage of 30,000 TL in 2026 and 5 years of service, the calculation would be 30,000 TL per year, totaling 150,000 TL gross severance pay. Only stamp tax is deducted from this amount. Those wishing to make a more detailed and personalized calculation can use various interactive calculation tools. Using such tools provides more accurate results based on personal data. • A sample calculation can be made based on gross wage, additional payments, and years of service. • For example, the calculation can be shown for an employee with a gross wage of 30,000 TL and 5 years of service in 2026. • For more detailed and personalized calculation, interactive calculation tools can be used.

Since the severance pay cap may change every year, it is important to check the current amount from official sources. Relying on outdated information can be misleading. There may be differences in interpretation between employee and employer regarding the scope of the dressed wage. Care should be taken to ensure all regular payments are included. It should not be assumed that severance pay is always payable. Eligibility conditions and the reason for termination should be carefully examined. • The severance pay cap may change annually; it is important to check the current amount from official sources. • There may be different interpretations between employee and employer regarding the scope of the dressed wage. • It should not be assumed that severance pay is always payable; eligibility conditions should be carefully reviewed.

The process regarding severance pay may vary depending on the individual circumstances of the employee and the manner in which the employment contract ends. Each case should be evaluated on its own merits. Following official sources and up-to-date legislation is important to prevent loss of rights. For an assessment tailored to your specific situation and to obtain legal support, you may contact a law office. No advance result or guarantee can be provided. • The process regarding severance pay may vary depending on the individual circumstances of the employee. • Official sources and up-to-date legislation should be followed. • For an assessment tailored to your situation and legal support, you may contact a law office.