Severance Pay Calculator
Enter the values and see an instant estimate.
What does the severance pay calculator do?
This tool estimates statutory severance pay (kıdem tazminatı) under Article 14 of Turkish Labour Law No. 1475 using length of service, the dressed gross wage and the ceiling in force on the termination date. It shows gross severance, stamp tax and the net amount payable to the employee.
How is severance pay calculated in Turkey?
1
Enter start and termination dates; the tool splits service into years, months and days and selects the ceiling by termination date.
2
Add regular benefits and the monthly share of bonuses to the gross wage to get the dressed wage.
3
Select the reason for leaving and review gross severance, stamp tax and net payment.
2026 severance pay ceiling
The wage used for each full year cannot exceed the severance ceiling in force on the termination date. The ceiling is updated twice a year.
| Period | Annual ceiling | Basis |
|---|---|---|
| 1 Jul 2026 – 31 Dec 2026 | 73,729.87 TL | Ministry of Treasury and Finance circular dated 2 Jul 2026 |
| 1 Jan 2026 – 30 Jun 2026 | 64,948.77 TL | Ministry of Treasury and Finance circular dated 6 Jan 2026 |
| 1 Jul 2025 – 31 Dec 2025 | 53,919.68 TL | Previous period |
When is severance pay due?
At least one year of service with the same employer is required, and the contract must end for a statutory reason.
- Dismissal by the employer other than for misconduct under Art. 25/II
- Resignation for just cause under Art. 24 (e.g. unpaid wages)
- Compulsory military service
- Retirement or old-age pension
- Female employee leaving within one year of marriage
- Death of the employee (paid to legal heirs)
Resignation without just cause does not create a severance entitlement.
Tax and payroll treatment
- Severance up to the ceiling is exempt from income tax (Income Tax Law Art. 25/7); only 0.759% stamp tax is withheld.
- Any amount above the ceiling is taxed as wage income.
- No social security contributions are due on severance (Law No. 5510 Art. 80).
- Severance provisions are not tax-deductible; the expense is recognised when paid.
Example Calculation
378,747.16 TL
Worked example (second half of 2026)
Start 10 Jun 2020, termination 20 Oct 2026: 6 years 4 months 10 days. The dressed wage of 60,000 TL (50,000 gross + 6,000 benefits + 48,000 bonus ÷ 12) is below the ceiling. Gross severance is 360,000 + 20,000 + 1,643.84 = 381,643.84 TL; after 2,896.68 TL stamp tax the net payment is 378,747.16 TL.
Who can use this calculator?
Employers planning terminations or headcount changes
Payroll, HR and finance teams
Foreign-owned companies budgeting exit costs in Turkey
Employees leaving for retirement or military service
Common questions about this tool
The ceiling is 73,729.87 TL for terminations between 1 July and 31 December 2026 and 64,948.77 TL for 1 January to 30 June 2026.
Each full year of service is paid at 30 days of the dressed gross wage, capped by the ceiling. Remaining months and days are added pro rata, and 0.759% stamp tax is deducted.
Severance up to the ceiling is exempt from income tax and social security contributions; only stamp tax applies. Amounts above the ceiling are taxed as wages.
Not if they resign without just cause. Just-cause resignation, retirement, military service and marriage (for female employees within one year) create an entitlement.