What is Severance Pay?
Severance pay is a compensation paid to an employee whose employment contract is terminated for specific reasons after working for a certain period under the same employer. In Turkey, employees are entitled to severance pay if they have worked for at least 1 year at the workplace. Thanks to the severance pay calculator, the accrued severance pay amount can be easily calculated based on employment duration and salary details.
How is Severance Pay Calculated?
When calculating severance pay, the employee's total tenure at the workplace and their final gross salary are taken into account. According to the general calculation logic, the employee earns severance pay in the amount of 30 days' gross wage for each full year of employment.
The basic calculation logic is as follows:
The employee's total tenure is determined
The final gross wage is taken as the basis
A 30-day gross wage is calculated for each year of employment
The severance pay calculator quickly shows the total severance pay based on tenure and salary information.
When Are You Eligible for Severance Pay? Calculation Example
For employees to qualify for severance pay, the employment contract must be terminated for specific reasons. The most common scenarios are:
Termination of employment by the employer
Resignation due to military service (for male employees)
Resignation due to marriage (for female employees)
Retirement or meeting the retirement criteria
In these cases, employees may be entitled to severance pay if they meet the required conditions.
Discover the Üstad
Bring your financial processes into the digital realm today
Frequently Asked Questions
How many years of service are required to qualify for severance pay?
For an employee to qualify for severance pay, they must have completed at least 1 year of continuous service at the same workplace.
Which base salary is used to calculate severance pay?
When calculating severance pay, the employee's final gross salary on their termination date is used as the basis.
Is there a cap on severance pay?
Yes. In Turkey, severance pay calculations are capped by a statutory limit updated annually. Even if an employee's gross salary exceeds this cap, the payout is calculated based on the maximum threshold.
Under what conditions is severance pay not applicable?
If an employee resigns voluntarily or if their employment contract is terminated by the employer for cause, they may not be eligible for severance pay in certain cases.