📄 Severance Pay Calculator

What is severance pay in Turkey?

Severance pay, called kıdem tazminatı in Turkish, is an employment receivable that may arise when an employee’s contract ends under legally recognized conditions. It is linked to length of service and gross wage, but eligibility depends on the termination reason.

The practical question is usually: “How much severance pay can I receive?” This page provides an estimate and explains the main limits of the calculation.

• Estimate severance pay based on service period
• Understand the role of gross salary
• See how the severance pay ceiling limits the result
• Separate severance pay from notice pay and salary
• Get a first estimate before professional review

How is severance pay calculated?

The general method is to calculate 30 days of gross wage for each full year of service, with proportional calculation for remaining months and days. If the gross wage exceeds the severance ceiling, the ceiling is applied.

1. Determine the employee’s total service period with the same employer.
2. Use the latest gross wage and assess regular measurable benefits where relevant.
3. Calculate 30 days of gross wage for each full year.
4. Add proportional amounts for remaining months and days.
5. Apply the severance pay ceiling if gross wage exceeds it.
6. Deduct stamp tax to estimate the net payable amount.

Why does the severance pay ceiling matter?

Severance pay per year is not unlimited. If the employee’s gross wage exceeds the applicable ceiling, the calculation uses the ceiling instead of the full gross wage.

• The ceiling limits severance pay for higher-paid employees.
• It is applied for each year of service.
• The first-half 2026 ceiling is 64,948.77 TRY.
• The applicable ceiling depends on the termination date.
• Old or future ceiling amounts should not be used without checking.

Is severance calculated from net or gross salary?

Severance pay in Turkey is calculated based on gross wage, not the net amount paid into the employee’s bank account. Calculations based only on net salary can be misleading.

• Gross wage is the primary basis.
• Some regular measurable benefits may be included depending on their nature.
• Net salary alone is not enough.
• Bonuses, meal allowance, transport allowance and other payments require separate assessment.
• Payroll and employment contract records are important.

To understand gross and net salary in Turkey, see the Salary Calculator or the Gross to Net Salary Calculator.

How to use the calculator

1. Enter the employment start and end dates.
2. Enter the latest gross salary.
3. Add regular benefits if the calculator supports them.
4. Make sure the applicable severance ceiling matches the termination date.
5. Run the calculation.
6. Use the result as an estimate, not as a final legal receivable.

Stamp tax and deductions

Severance pay is not treated exactly like monthly salary payroll. Stamp tax may apply, while income tax and SGK treatment differ from ordinary salary.

• Gross severance pay is calculated first.
• The ceiling is applied if necessary.
• Stamp tax is considered where applicable.
• The approximate net payable amount is shown.

Common mistakes

• Calculating severance from net salary
• Ignoring the severance pay ceiling
• Using the wrong ceiling for the termination date
• Assuming every resignation creates severance entitlement
• Including or excluding benefits without checking their nature
• Forgetting stamp tax
• Treating an online estimate as a final legal claim

The longer the employment period, the higher the salary and the more complex the termination reason, the more important professional review becomes.

Which calculators are related?

Employment termination may involve more than severance pay. Notice pay, unused annual leave, unpaid overtime and unemployment benefit may also need separate calculation.

• Use Notice Pay Calculator for ihbar tazminatı.
• Use Annual Leave Pay Calculator for unused leave.
• Use Overtime Pay Calculator for unpaid overtime.
• Use Unemployment Benefit Calculator for işsizlik maaşı estimates.

You may also need the Notice Pay Calculator, Annual Leave Pay Calculator and Overtime Pay Calculator.