What Is Severance Pay (Kıdem Tazminatı)?
Severance pay is compensation that the employer must pay when the employment contract of a worker who has been employed for at least 1 year ends under certain conditions. It is regulated under Labor Law No. 4857.
2026 Severance Pay Cap Amount
The 2026 severance pay cap: 53,919.68 TL / year (for each year of service)
This cap is updated every year in line with minimum wage increases and collective bargaining developments. Calculations are made based on the gross cap.
Severance Pay Calculation Formula
> Severance Pay = Daily Gross Wage × 30 × Number of Years Worked
Or, more precisely:
- Basic formula: **Severance Pay = (Gross Monthly Wage × Years of Service)**
- If it exceeds the 2026 cap: **A maximum of 53,919.68 TL for each year**
Sample Calculation
- Gross monthly wage: 35,000 TL
- Length of service: 5 years 3 months
- 5 years × 35,000 TL = 175,000 TL → Cap check: 5 × 53,919.68 = 269,598.40 TL
- The cap is not exceeded → **Severance pay: 175,000 TL + 3/12 × 35,000 = 183,750 TL**
Who Can Receive Severance Pay?
✅ Employees dismissed unfairly by the employer
✅ Employees who leave due to military service (male employees)
✅ Employees who leave due to marriage (female employees — within 1 year of the marriage date)
✅ Employees who become entitled to retirement
✅ Legal heirs, in the event of death
❌ Those who resign without a justified reason (generally)
❌ Those who have worked less than 1 year
❌ Those who leave during the probationary period
Tax Status on Severance Pay
As of 2026, the portion of severance pay up to the cap amount is exempt from income tax. The portion exceeding the cap may be subject to stamp duty at a rate of 20%. No SGK (social security) premium is deducted.
Automatic Calculation
Use our Severance Pay Calculator tool to calculate your compensation amount. It automatically calculates using the current 2026 cap amounts, including the income tax exemption.