Severance pay (Kıdem Tazminatı) is accrued at the rate of 30 days of gross wages per completed year of service, subject to the statutory severance ceiling (kıdem tazminatı tavanı), which the Ministry of Treasury and Finance revises every six months. Use our calculator below to calculate exact statutory entitlements under current Turkish labor law, or consult our labor law litigators for legal counsel.
Severance Pay (Kıdem Tazminatı) Eligibility & 2026 Ceiling Rules
Under Article 14 of Labour Act No. 1475 (preserved under Act No. 4857), severance pay requires two statutory prerequisites:
- Minimum 1 Year of Tenure: The employee must have worked continuously for at least 1 full year at the same employer or affiliated group companies.
- Qualifying Termination Grounds: Severance is payable when: (1) the employer terminates without just cause, (2) the employee resigns for just cause under Labour Act Art. 24 (non-payment of wages, workplace harassment, health risks), (3) mandatory military service, (4) retirement, or (5) female employee resignation within 1 year of marriage.
- Statutory Ceiling (Kıdem Tavanı): The gross monthly wage used for severance cannot exceed the semi-annual statutory ceiling determined by the Ministry of Treasury and Finance, which changes each January and July. Severance pay is exempt from income tax, with only ‰7.59 stamp tax deducted.
Notice Pay (İhbar Tazminatı) Statutory Periods & Computation
Under Article 17 of Labour Act No. 4857, either party wishing to terminate an indefinite employment contract without just cause must give advance statutory notice or pay wages in lieu of notice:
- Less than 6 Months Tenure: 2 weeks' notice (or 14 days of gross wages).
- 6 Months to 1.5 Years Tenure: 4 weeks' notice (or 28 days of gross wages).
- 1.5 Years to 3 Years Tenure: 6 weeks' notice (or 42 days of gross wages).
- More than 3 Years Tenure: 8 weeks' notice (or 56 days of gross wages).
- Taxation: Notice pay is considered regular income and is subject to standard progressive income tax (15% to 40%) plus ‰7.59 stamp tax.
Unfair Dismissal & Reinstatement Lawsuits (İşe İade Davası - Arts. 18–21)
Employees working in qualifying workplaces enjoy statutory 'Job Security' (İş Güvencesi) protections against arbitrary dismissal:
- Prerequisites: (1) Workplace employing 30 or more workers, (2) Employee tenure of at least 6 months, and (3) Employment contract of indefinite duration.
- Mandatory Mediation Deadline (Art. 20): The dismissed worker must file an application for Mandatory Labor Mediation (*Zorunlu Arabuluculuk*) within strictly 1 month from the delivery of the written termination notice. Missing this 30-day window forfeits the right to reinstatement.
- Court Remedies (Art. 21): If the Labour Court finds the dismissal invalid, it orders reinstatement and awards: (1) up to 4 months of idle period wages (*Boşta Geçen Süre Ücreti*), and (2) 4 to 8 months of non-reinstatement penalty wages (*İşe Başlatmama Tazminatı*) if the employer refuses to rehire the worker.
Invalidity of Pre-Signed Waivers & Resignation Letters (TBK Art. 420)
A widespread corporate abuse in Turkey involves pressuring departing employees to sign blanket settlement waivers (*İbraname*) or undated resignation letters:
- Strict Statutory Form Requirements: Under Article 420 of the Turkish Code of Obligations (TBK), any release deed signed before or within 30 days of dismissal is legally null and void.
- Detailed Bank Transfer Mandatory: An ibraname is only valid if it explicitly lists every single claim item separately and payments are executed strictly through a Turkish banking channel.
- Overtime & Unused Annual Leave: Overtime work (exceeding 45 hours/week) is compensated at 150% of the regular hourly rate and carries a 5-year statute of limitations.
Frequently asked questions
Can foreign nationals working on a Turkish work permit claim severance pay?
Yes. Turkish labor law applies equally to all employees regardless of nationality. Foreign nationals employed under a valid Turkish work permit are fully entitled to statutory severance pay, notice pay, overtime, and reinstatement rights under Act No. 4857.
What happens if my salary was paid partly in cash and partly via bank?
Under-reporting salary to SGK (social security) is an employer infraction. In Turkish Labour Courts, actual wages can be proven through industry wage inquiries (Emsal Ücret Araştırması), bank deposits, emails, and witness testimony, entitling the employee to recalculate severance on actual gross pay.
If I resign voluntarily, can I still receive severance pay in Turkey?
As a rule, voluntary resignation forfeits severance. However, under Labour Act Art. 24, if you resign for 'Just Cause' (e.g., unpaid overtime, late salary payments, mobbing, unregistered wages), you remain entitled to 100% of your severance pay.
What is the deadline to challenge an unfair dismissal in Turkey?
You must apply for Mandatory Labor Mediation within exactly 1 month (30 days) from the date you receive the written dismissal notice. If mediation fails to yield an agreement, a lawsuit must be filed within 2 weeks at the Turkish Labour Court.
Is severance pay in Turkey subject to income tax?
No. Statutory severance pay up to the statutory ceiling in force is exempt from income tax under Turkish tax legislation. Only a nominal stamp tax (‰7.59) is deducted.
