Severance Pay Calculator

What is severance pay?

Severance pay is compensation paid to an employee whose contract ends in one of the ways set out in law and who has worked for the same employer for at least one year, amounting to one month's gross salary for each full year of service. Article 14 of the (still-in-force) Labour Act No. 1475 is its main legal basis.

It secures the seniority an employee accumulates throughout their working life and is regarded as the reward for loyalty and labour. It is therefore one of the most frequently claimed items among employee receivables.

How is severance pay calculated?

The calculation is simple: last gross monthly salary × total length of service (in years). Months exceeding a full year are added proportionally. This tool converts the years and months you enter into years (months/12) and multiplies by the gross salary. The wage base also includes regularly paid bonuses, transport, meal and similar measurable benefits.

Severance ceiling

The wage base for severance is capped by a severance ceiling set by the state every six months. For employees earning above the ceiling, the calculation is made over the ceiling. This tool gives an estimate over the gross amount and does not apply the ceiling automatically.

Example calculation

For an employee with a gross monthly salary of 30,000 ₺ and 5 years 6 months of service: 30,000 × (5 + 6/12) = 30,000 × 5.5 = 165,000 ₺ gross severance.

Eligibility conditions

• At least 1 year of service with the same employer.
• Termination in one of the ways listed in law (dismissal other than for just cause, employee's justified termination, retirement, military service, marriage for female employees, death of the employee, etc.).
• Voluntary resignation without just cause does not, as a rule, give rise to severance.

Frequently Asked Questions

Is severance calculated gross or net?

It is calculated over the gross salary and is subject only to stamp duty; no income tax or social-security premium is deducted. This tool shows the gross amount.

Do I get severance if I work less than a year?

As a rule, no. At least one year of service with the same employer is required.

Can I claim severance if I resign?

Resignation without just cause does not create severance. However, departures based on retirement, military service, marriage (female employee) or the employee's justified termination may.

What is the limitation period?

The severance claim is subject to a 5-year limitation period from termination.

This tool is for information only; the ceiling, deductions and type of termination affect the amount. Seek expert advice for a precise calculation.