Severance and Notice Pay Calculator
Severance pay is compensation for the wear and tear of an employee's length of service under Turkish labour law. Estimate your entitlement in seconds.
Severance and Notice Pay Calculator
What Is Severance Pay and How Is It Earned?
Severance pay (kıdem tazminatı) is a form of compensation for the wear and tear an employee experiences over their length of service. An employee has worked for an employer during a certain period of their life and has expended their labour; the amount paid in return for this labour is called severance pay.
To be entitled to severance pay, the employee must first have completed at least one full year of service. In addition, the employment contract must have been terminated by the employee for just cause or by the employer without just cause. For detailed information, see our articles (in Turkish):
Conditions for Receiving Severance Pay 2025
The Employee's Right to Terminate for Just Cause
Which Payments Are Included When Calculating Severance Pay?
When calculating severance pay, the employee's gross salary is determined first. In addition to this salary, the following supplementary payments made alongside the gross wage are taken into account:
- Transport and meal allowances,
- Social benefits received,
- Bonuses and premiums,
- Rent, if housing assistance is provided.
To illustrate with an example: the gross minimum wage for 2025 is TRY 26,005.50. Suppose the employee receives TRY 10,000.00 monthly rent assistance, TRY 5,000.00 transport and meal allowance, and TRY 6,000.00 clothing allowance every 6 months. The annual clothing allowance is TRY 12,000.00, i.e. TRY 1,000.00 per month. Accordingly: TRY 26,005.50 + TRY 5,000.00 (transport and meals) + TRY 10,000.00 (rent assistance) + TRY 1,000.00 (clothing allowance) gives TRY 42,005.50 as the basis for severance pay.
This basis is multiplied by the length of service. For an employee who has worked 2 years and 10 months, the calculation is TRY 42,005.50 × (2 + 10/12). Severance pay is then found after deducting the necessary amounts such as stamp duty.
How Do You Calculate Gross Salary from Net Salary?
The formula for gross salary from net salary is: "Gross Salary = Net Salary + Social Security Premium + Unemployment Premium + Income Tax + Stamp Duty".
What Is the Severance Pay Cap for 2025?
The severance pay cap is the maximum amount payable for one year of service. However high the monthly gross wage, severance pay is determined according to the cap, which is set in six-month periods.
The cap applies not only to the current year but also to compensation for past years. The caps by period are as follows:
- 01 January 2025 – 30 June 2025: TRY 46,655.43,
- 01 July 2024 – 31 December 2024: TRY 41,828.42,
- 01 January 2024 – 30 June 2024: TRY 35,058.58,
- 01 July 2023 – 31 December 2023: TRY 23,489.83,
- 01 January 2023 – 30 June 2023: TRY 19,982.83,
- 01 July 2022 – 31 December 2022: TRY 15,371.40,
- 01 January 2022 – 30 June 2022: TRY 10,848.59,
- 01 July 2021 – 31 December 2021: TRY 8,284.51,
- 01 January 2021 – 30 June 2021: TRY 7,638.96,
- 01 July 2020 – 31 December 2020: TRY 7,117.17,
- 01 January 2020 – 30 June 2020: TRY 6,730.15.
What Is Notice Pay and How Is It Earned?
Notice pay (ihbar tazminatı) is the compensation that an employee or employer must pay if they terminate the employment contract without giving the other party the required notice period.
To be entitled to notice pay, the employee or employer must have terminated the contract without observing the notice period. However, no notice period is required if either party terminates the contract for just cause. For more information, see our article "What Are the Notice Period and Notice Pay? How Are They Calculated?" (in Turkish).
How Is Notice Pay Calculated?
Notice periods depend on the employee's length of service. Under Article 17 of the Labour Act, depending on length of service, the notice period is:
- 2 weeks for service of less than 6 months,
- 4 weeks for service of 6 months to 1.5 years,
- 6 weeks for service of 1.5 to 3 years,
- 8 weeks for service of more than 3 years.
As with severance pay, notice pay is calculated on the "grossed-up wage". First the employee's monthly gross wage is determined, and payments such as transport and meal allowances are added to it.
Amounts such as rent assistance, clothing allowance, and the monthly equivalent of bonuses or premiums are added to the monthly gross wage.
The grossed-up gross wage is the basis for calculating the compensation. An employee who has worked for less than 6 months is entitled to notice pay equal to two weeks' grossed-up gross wage; for 6 months to 1.5 years, the entitlement is four weeks' grossed-up gross wage, and so on according to the notice periods above.
Once the amount of compensation is determined, the final amount is reached after deducting the applicable taxes.