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Severance Pay 2026: Who Can Receive It, How It Is Calculated, What Is The Ceiling? Law No. 1475 art. Eligibility Conditions, Remuneration, Ceiling and Lawsuit Process in accordance with the Labor Law No. 14 and 4857 (2026) has been prepared based on the legislation in force as of 2026 and official sources dated October 2026.
Severance pay is paid to the employee who has worked for the same employer for at least one year, based on thirty days' gross wage for each full year, in case the employment contract is terminated for reasons listed in the law. The amount cannot exceed 73,729.87 TL for one year of severance as of July 1, 2026. Resignation of the employee without justified reason eliminates the right to compensation; Therefore, clearly stating the reason for termination in the notification determines the outcome. The claim is subject to a five-year statute of limitations and it is mandatory to apply for mediation before litigation.
Severance pay is a compensation paid to the employee in the amount of thirty days' wages for each full year of employment when the employment contract is terminated for one of the reasons listed in the law. The most frequently asked questions in internet searches revolve around this compensation: can the resigned person receive it, how much is the ceiling, what payments are included in the calculation, what to do if the employer does not pay.
This guide explains the subject step by step, based on the ceiling amounts in force as of 2026, eligibility conditions and the established practice of the 9th Civil Chamber of the Supreme Court of Appeals. The criterion that determines whether a right is acquired is often who terminates the contract and for what reason; Therefore, the steps taken at the time of termination directly affect the outcome.
Since the Labor Law No. 4857 does not re-regulate severance pay, the issue is subject to Article 14 of the Labor Law No. 1475, which remains in force with the reference to Article 120 of the Law. To be eligible for compensation, you must have worked for the same employer for at least one year. The periods spent in different workplaces of the same employer are combined; If compensation has not been paid for the previous period in intermittent work, that period is also added to the seniority.
If the employee's contract, which has completed one year, is terminated in one of the following situations, compensation arises:
Employer termination: Employer's termination in accordance with Article 25/II of Law No. 4857. Termination of the contract for a reason other than violation of the rules of morality and good faith listed in the article.
Justified termination of the worker: The worker terminates the contract due to violation of the rules of health, morality and good faith listed in Article 24 or compelling reasons (such as non-payment of wages, underpayment of insurance premiums).
Military Service: Dismissal from employment due to active duty military service.
Conditions other than retirement and age: Leaving in order to receive an old-age pension or lump sum payment, or leaving based on the letter received from SSI by completing the insurance period and premium day conditions other than age.
Marriage: Voluntary separation of the female worker within one year from the date of marriage.
Death: In case of death of the worker, compensation is paid to the legal heirs.
The termination of a fixed-term employment contract at the end of the term is also accepted as a situation that gives rise to severance pay in practice. On the other hand, the employee's resignation without a justified reason and the employer's 25/II. Termination for justified reason within the scope of the article eliminates the right to compensation.
Which Fee is Considered?
The calculation is made on the gross wage, not the naked wage. Bare gross wage; The monthly equivalent of regularly paid food, transportation, fuel, bonuses, premiums and similar money or benefits that can be measured in money is added. Incidental payments and overtime pay are not taken into account. The base wage is the last wage on the date of termination.
The amount to be paid for one year of seniority cannot exceed the retirement bonus paid to the highest civil servant for one year of service. The ceiling is redetermined in January and July depending on the change in the civil servant salary coefficient. The Supreme Court reiterates that the ceiling is absolutely mandatory and the calculation made by exceeding it constitutes a reason for reversal (Supreme Court 9th HD, E. 2025/6833, K. 2025/7551, T. 08.10.2025).
Only stamp duty of 7.59 per thousand is deducted from the compensation; Severance pay is exempt from income tax as long as it remains within the legal limit. For fractions of a year, payments are made in proportion to the duration.
Example Working Time Dressed Gross Wage Basic Fee Gross Compensation Net (After Stamp Duty)
The examples in the table are prepared for terminations occurring in October 2026. In example A, 360,000 TL is calculated for six full years, and 60,000 x 4/12 = 20,000 TL for four months. In example B, since the wage exceeded the ceiling, the calculation was made based on the ceiling.
Payment time: Compensation is due on the date of termination of the contract. In case of delay, Law No. 1475
In accordance with Article 14, the highest interest applied to the deposit is charged.
Release Letter: According to Article 420 of the Turkish Code of Obligations, the release letter must be issued at least one month after termination, the type and amount of the receivable must be clearly written and the payment must be made in full through the bank. A release that does not meet these conditions is not binding on the employee.
Statute of Limitations: Severance pay receivables are subject to a five-year statute of limitations from the date of termination (Additional Article 3 of Law No. 4857).
Mediation: Applying to a mediator before filing a lawsuit is a condition of litigation in accordance with Article 3 of the Labor Courts Law No. 7036. The mediator concludes the process within three weeks; In cases of necessity, the period may be extended by a maximum of one week.
qualifying Working for the same employer for at least 1 year and a reason for termination specified in the law
statute of limitations 5 years from the date of termination (Additional Article 3 of Law No. 4857)
Case Summary: Murat Bey, who has been working in a logistics company for seven years, has been paid regularly fifteen to twenty days late in the last six months. Murat Bey terminated the employment contract by clearly stating that the non-payment of wages on time was the reason for termination in the notice he sent through a notary. Legal Evaluation: Failure to pay the wage gives the employee the opportunity for justified termination within the scope of Article 24/II-e of Law No. 4857. Clearly stating the reason in the termination notice weakens the employer's later attempt to describe the transaction as a resignation. Murat Bey is entitled to severance pay; Since he made the justified termination himself, he cannot claim notice compensation.
Case Summary: Ms. Ayşe, who completed her bonus date and insurance period but was not of age, left her employer by applying to her employer with a letter based on the severance pay she received from SGK, and started working in another company two months later. Legal Evaluation: Article 14 of Law No. 1475 accepts the resignation of a worker who has completed the conditions other than age as a reason for compensation. Starting a new job does not in itself eliminate the right; However, if it is proven that the resignation was actually made to move to another employer and the retirement letter was used as an excuse, a dispute may arise. For this reason, it would be appropriate to prepare the resignation petition based on the SSI letter.
Can a resigned worker receive severance pay?
As a rule, it cannot be used without a justified reason. Termination due to reasons such as non-payment of wages, underpayment of insurance premiums, non-payment of overtime or psychological harassment is justified termination and gives rise to the right to compensation.
Is probationary period included in seniority?
Yes. Service period is calculated from the date of employment; The trial period is included in this period.
Is severance pay paid in cash or in installments?
The law provides for payment at the time of termination of the contract. Payment in installments is only possible by agreement of the parties; The highest deposit interest accrues for each day of delay.
Does a male worker who leaves due to military service receive compensation?
A worker who leaves for active duty military service and has one year of seniority is entitled to compensation. Time spent in military service is not added to seniority.
Terminating the contract without stating the real reason in the termination notice.
Making the calculation based on bare wage instead of disguised wage.
Signing the printed resignation letter or release signed before termination without considering that it may result in loss of rights.
Not checking whether the release meets the requirements of Article 420 of the Turkish Code of Obligations.
Failure to follow the five-year statute of limitations and mandatory mediation application.
The majority of severance pay disputes arise from incorrect characterization of the reason for termination and undercalculation of the compensation paid. The content of the notice, the account to be presented at the mediation meeting and the terms of the release are the factors that determine the outcome.
Küheylan Law Firm handles the entire process, from pre-termination evaluation to mediation negotiation and trial in the labor court, in the files handled by the employee and employer, and calculates the compensation.
It prevents loss of rights by inspecting according to the current criteria of the Supreme Court.
Important Legal Notice: The legal explanations contained in this guide have been prepared by Küheylan Law Firm for general information purposes and do not constitute legal advice. The unique conditions of each file may change the outcome. In order not to miss the application, objection and lawsuit deadlines, it is recommended to get legal support from a lawyer before the process begins. © 2026 Küheylan Law Firm. All rights reserved.
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