Türkiye. Severance Pay (Kıdem Tazminatı) 2026: Complete Guide
In 2026, the limits for termination payouts have changed.
The statutory ceiling (cap) for severance pay has increased to 64,948 Turkish liras for each year of service. Below is a detailed breakdown of who is eligible for the payout, how it is calculated, and what taxes are withheld.
* Key Figures for 2026
Severance pay is calculated based on gross salary, but it is subject to statutory limits.
Minimum Amount (based on the minimum wage):
— Gross: 33,030.00 TL
— Net (take-home): 32,779.50 TL
Maximum Amount (Ceiling / Tavan):
— Gross: 64,948.77 TL
— Net (take-home): 64,456.61 TL
Important: Even if an employee's salary is 100,000 TL, the severance pay calculation for 1 year of service will be capped at the statutory ceiling of 64,948.77 TL. Anything above this amount is at the employer's sole discretion. The net amount is calculated after deducting Stamp Duty (0.759%). Income tax is not levied on these amounts.
* Calculation Formula: What Is Included in the Amount?
Many mistakenly calculate severance pay using only the "base" salary. The calculation is actually based on the so-called "Augmented Gross Salary" (Giydirilmiş Brüt Ücret).
Formula: (Gross Salary + Regular Benefits) multiplied by Tenure (in years).
What is included in the calculation (increases the amount):
— Base salary.
— Bonuses (regular / recurring).
— Meal allowance (Yemek) and transportation allowance (Yol).
— Allowances for heating, housing, family, and children.
What is not included:
— Overtime pay (Mesai).
— Per diems and travel allowances.
— One-time discretionary payments (birth of a child, bereavement).
* Who Is Eligible for the Payout?
To receive severance pay, two conditions must be met:
— Length of service: Work for the given employer for at least 1 year.
— Grounds for termination: Termination must qualify under statutory grounds.
The payment is due in the following cases:
— The employer terminates the employee (except for termination with just cause due to breach of ethics or discipline under Article 25/II).
— The employee resigns for "just cause" (Article 24 — for example, non-payment of salary, mobbing).
— Retirement.
— Compulsory military service enlistment (for men).
— Marriage (for women) — if resigning within 1 year of the wedding date.
— Death of the employee (paid to legal heirs).
* Legal Exception: How to Resign and Still Receive Severance?
Normally, voluntary resignation (İstifa) forfeits severance pay. However, an exception exists for individuals who have completed the required premium days for retirement but have not yet reached the statutory retirement age.
Conditions for resignation with severance entitlement (depending on the initial social security registration date):
— If employment began before 08.09.1999: 15 years of insurance coverage and 3,600 paid premium days are required.
— If employment began between 09.09.1999 and 30.04.2008: 25 years of insurance coverage and 4,500 premium days are required.
— If employment began after 01.05.2008: A graduated tier system applies. For example, for those who started in 2008, 4,600 days are required, while for those who started in 2016 and later, 5,400 days are required.
The employee must obtain a certificate from the Social Security Institution (SGK) confirming that the premium day requirements are fulfilled and submit it to the employer.
* Legal Nuances
— Statute of limitations: If your severance has not been paid, you have 5 years to file a claim.
— Dispute procedure: Mandatory mediation (Arabuluculuk) is the preliminary stage. If no settlement is reached, the dispute proceeds to court.
— Default interest: For late payment, the claimant is entitled to demand the highest commercial deposit interest rate applied by banks.
Summary for Employers
When budgeting for severance terminations in 2026:
* Factor in a maximum of 65,000 TL for each year of service for executive-level staff.
* Factor in a minimum of 33,000 TL for each year of service for line staff.
* Keep in mind that payouts are exempt from income tax and SGK premiums; only stamp duty (approximately 0.76%) is withheld.