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Melikhan ÖzçelikCertified Public Accountant (SMMM)

Severance and notice pay calculator

Gross and net severance pay with the 2026 ceiling, notice period and notice pay under Turkish labour law.

Severance and notice pay

Law No. 1475 Art. 14 and Labour Law No. 4857 Art. 17. Severance pay is exempt from income tax.

Gross salary plus regular meal, transport, bonus etc.
Severance base pay
55,000.00 TL
Gross severance pay
352,916.67 TL
Stamp duty
2,678.64 TL
Net severance pay
350,238.03 TL
Notice period
8 weeks
Gross notice pay
102,666.67 TL
Net notice pay
86,487.43 TL
Total net
436,725.46 TL

Notice period: under 6 months 2 weeks; 6 months–1.5 years 4 weeks; 1.5–3 years 6 weeks; over 3 years 8 weeks. Notice pay is subject to income tax; the applicable bracket depends on the employee’s cumulative annual tax base.

Calculations are for general information only. Rates and amounts are current as of November 2026; always check current legislation before filing or paying.

How is severance pay calculated?

Severance pay (kıdem tazminatı) amounts to 30 days' gross wages for each full year of service with the employer; any period exceeding full years is added on a pro-rata basis. The calculation is based not on the bare salary but on the "dressed" gross wage (giydirilmiş ücret), which includes regular payments such as meal allowances, transport allowances and bonuses. However, the amount payable for one year of service cannot exceed the severance pay ceiling. Only stamp duty (7.59 per mille) is deducted from severance pay; no income tax is charged.

Legal basis

Severance pay is based on Article 14 of Labour Law No. 1475, which remains in force, and its income tax exemption on Income Tax Law No. 193 (GVK), Article 25/7. The ceiling is linked to the retirement bonus of the highest-ranking civil servant and is updated every six months: 64,948.77 TL for January–June 2026 and 73,729.87 TL for July–December 2026. Notice periods are regulated in Article 17 of Labour Law No. 4857: 2 weeks for service of less than six months, 4 weeks for six months to one and a half years, 6 weeks for one and a half to three years, and 8 weeks for more than three years. Notice pay (ihbar tazminatı) is subject to income tax and stamp duty.

Worked example

For an employee with a dressed gross wage of 55,000 TL who has worked for 6 years and 5 months, the gross severance pay is 55,000 × (6 + 5/12) = 352,916.67 TL. After deducting stamp duty of 2,678.64 TL, the net severance pay is 350,238.03 TL. The notice period is 8 weeks; the gross notice pay is 102,666.67 TL, and after 15% income tax and stamp duty the net amount is 86,487.43 TL.

For labour costs and payroll processes, please see the accounting and payroll services page.

Frequently asked questions

Who is entitled to severance pay?

Employees with at least one year of service are entitled if their employment contract is terminated by the employer (except in cases of breach of the rules of morality and good faith), if they terminate it themselves for just cause, or if they leave for military service or retirement; female employees who leave within one year of marriage are also entitled.

How is the severance pay ceiling applied?

If the dressed gross wage exceeds the ceiling, the calculation is made on the ceiling amount. The ceiling in force on the termination date is taken into account.

Is notice pay due if the notice period is observed?

No. If the contract is terminated in compliance with the notice period, no notice pay arises; if the notice period is not observed, compensation equal to the wages for that period is paid.

Can an employee who resigns receive severance pay?

As a rule, no. However, they can in the cases listed in the law, such as termination for just cause, retirement, military service and a female employee leaving due to marriage.

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