Severance pay (kıdem tazminatı) is one of the most important employee entitlements. The arithmetic is simple but contains important details.
Basic formula
Gross monthly salary × years of service. Gross includes base salary, fixed allowances (meals, transport, rent), and recurring bonuses.
Annual ceiling
Each year's severance cannot exceed an annual cap (revised yearly). The 2026 cap is around 46,655 TL. Higher salaries are capped at this figure per year.
Fractions and months
Less than a year earns no severance. A whole year + 6 months = 1.5 years (fractions count).
When severance is owed
Dismissal without just cause, resignation for health reasons, marriage (women only, within 1 year), military service, retirement. Voluntary resignation does not earn severance.
Tax
Up to the annual cap, severance is tax-exempt. Anything above is subject to income tax.