How to Calculate Severance Pay in Türkiye

Formula

gross severance pay = min(gross wage + benefits; ceiling) × (years + months/12 + days/365)

net severance pay = gross severance pay − gross severance pay × 7.59 per mille

• gross wage: the last monthly gross wage
• benefits: the monthly total of regular payments such as meals, transport and a twelfth of the yearly bonus
• ceiling: the severance pay ceiling in force on the end date
• years, months, days: the full years from the start date to the end date, the full months after them and the days after those
• 7.59 per mille: the stamp duty rate on wage payments (Law 488, table 1, IV-1-b)

Each full year earns 30 days of wage, which is one month of wage (Law 1475 art. 14). A year counts as 365 days.

Step-by-step example

Start date 15 March 2020, end date 1 September 2026; last gross wage 45,000 TRY, regular benefits 3,000 TRY a month:

1. Service: 6 years 5 months 17 days, that is 6 + 5/12 + 17/365 ≈ 6.4632 years.
2. Wage used: the wage and benefits come to 48,000 TRY. The ceiling on the end date is 73,729.87 TRY, so min(48,000; 73,729.87) = 48,000 TRY.
3. Gross severance pay: 48,000 × (6 + 5/12 + 17/365) = 310,235.62 TRY.
4. Stamp duty: 310,235.62 × 7.59 per mille = 2,354.69 TRY.
5. Net severance pay: 310,235.62 − 2,354.69 = 307,880.93 TRY.

When the ceiling applies

The ceiling is the most that can be paid for one year of service. It changes in January and July, and the end date decides which one applies:

Take a job from 1 March 2018 to 1 June 2026 with a gross wage of 60,000 TRY and benefits of 5,000 TRY a month. The total of 65,000 TRY is above that day’s ceiling of 64,948.77 TRY. Service is 8 years 3 months, that is 8.25 years. The gross severance pay is 64,948.77 × 8.25 = 535,827.35 TRY, the stamp duty 4,066.93 TRY and the net 531,760.42 TRY. Had the job ended on 1 July 2026, the 65,000 TRY would have stayed below the 73,729.87 TRY ceiling.

Common mistakes

• Counting both days and so stretching the service. The Court of Cassation (Yargıtay) counts 11.09.2020–10.09.2021 as 364 days, which is not a full year. The calculator also treats 11 September 2025 to 10 September 2026 as under a year and gives no severance pay.
• Leaving out benefits. Regular meals, transport and bonus payments are part of the wage used.
• Deducting income tax or social security. Only stamp duty is taken from severance pay; the calculator does not apply the minimum wage stamp duty exemption either.
• Not checking entitlement. The amount is due only in the cases the law lists; a separate guide covers who is entitled.