Severance pay, called kıdem tazminatı in Turkish, is a legal right for employees in Turkey. It is paid by the employer when certain conditions are met, usually when the employment ends for reasons allowed under the law.

Who Can Get Severance Pay

An employee may receive severance pay if:

1. They are dismissed by the employer without a valid reason
2. They retire
3. They leave work to complete compulsory military service (men)
4. A woman leaves her job within one year after getting married
5. They resign for a legally acceptable reason, such as unsafe working conditions or unpaid wages
6. The employee dies during the employment period

How It Is Calculated

The basic rule is:

Severance Pay = One month’s gross salary × Years worked for the same employer

If the salary is higher than the government’s severance pay limit, the calculation uses the maximum limit instead. Regular allowances like meal or travel benefits are included in the calculation, but one-time bonuses or irregular payments are not.

2025 Severance Pay Limit

The government updates the severance pay limit twice a year. In 2025, the limits are:

If an employee’s salary is above this amount, the calculation will use the cap for the relevant period.

Taxes and Deductions

Severance pay is free from income tax up to the legal limit. If the payment is higher than the limit, the extra amount is taxed. There is also a small stamp tax of 0.759% on the total severance pay. No social security contributions are taken from it.

Why It Matters

For employers, following the correct calculation rules is important to avoid disputes and penalties. For employees, knowing the updated limits and calculation method helps them ensure they receive the amount they are entitled to.