Severance Pay and Notice Pay in Türkiye: Everything You Need to Know

Some of the most frequently asked questions in Turkish working life are about severance pay (kıdem tazminatı) and notice pay (ihbar tazminatı). When leaving a job, questions such as “Am I entitled to compensation?” and “How much severance pay will I get?” are on everyone’s mind. In this guide, we clarify employee compensation rights and explain step by step the key details of termination compensation, notice periods, the current severance pay ceiling and how compensation is calculated.

What Is Severance Pay?

Severance pay is a right paid to employees who meet certain conditions when their employment contract ends. It is considered compensation for the work an employee has done during their time at the workplace.

To be entitled to severance pay, an employee must:

• Have worked for the same employer for at least 1 year,

• Have had their employment contract end in one of the ways listed in the law.

The main situations that entitle an employee to severance pay are:

• Termination by the employer for a reason other than misconduct contrary to morality and good faith,

• Termination by the employee for a just cause (for example, unpaid wages or health reasons),

• Leaving to perform compulsory military service,

• Leaving upon retirement or after meeting the retirement conditions other than age (for example, 15 years of insurance and 3,600 days of premiums),

• A female employee leaving voluntarily within 1 year of getting married,

• The employee’s death (in which case the compensation is paid to the legal heirs).

After How Many Years Can You Receive Severance Pay?

You must have worked for the same employer for at least 1 year to receive severance pay. For each full year of service, severance pay equal to 30 days of gross wages is paid, and periods beyond a full year are calculated proportionally. However, the amount paid for one year cannot exceed the severance pay ceiling.

What Is the Severance Pay Ceiling in 2026?

The severance pay ceiling is based on the retirement bonus paid to the highest-ranking civil servant for one year of service and is updated every January and July together with civil servant salary coefficients. The ceiling for 2026 is:

• 1 January - 30 June 2026: 64,948.77 TL

• 1 July - 31 December 2026: 73,729.87 TL

The ceiling in effect on the date the contract ends is used in the calculation.

What Is Notice Pay?

Notice pay is based on the principle that the party wishing to end an indefinite-term employment contract must notify the other party in advance. In other words, the employee or employer must give the other party a certain notice period before ending the contract.

If the employer dismisses the employee without giving this notice, or if the employee quits without a just cause and without observing the notice period, notice pay is owed to the other party.

How Long Is the Notice Period?

The notice period depends on how long the employee has worked at the same workplace:

• Less than 6 months: 2 weeks

• Between 6 months and 1.5 years: 4 weeks

• Between 1.5 and 3 years: 6 weeks

• More than 3 years: 8 weeks

How Is Notice Pay Received?

If the notice period is not observed, the wages corresponding to this period must be paid in advance. The amount is calculated based on the employee’s gross wage including regular benefits (known as the “dressed” gross wage).

Differences Between Severance Pay and Notice Pay

• Purpose: Severance pay compensates the employee’s past service; notice pay compensates for the lack of advance notice.

• Who receives it: Severance pay goes to employees who meet the conditions and have worked for at least 1 year; notice pay goes to the party whose contract was ended without the required notice.

• Calculation: Severance pay is 30 days of gross wages for each full year (subject to the ceiling); notice pay is the gross wage for the length of the notice period.

• Tax: Only stamp tax is deducted from severance pay; income tax and stamp tax are deducted from notice pay.

Knowing these differences helps both employers and employees take the right steps in employment compensation processes.

How Are Severance Pay and Notice Pay Calculated?

Calculating Severance Pay in 2026

Severance pay = Gross wage including regular benefits × Years of service (the wage used cannot exceed the severance pay ceiling)

Example 1: For an employee who has worked at the same workplace for 5 years with a gross wage including benefits of 50,000 TL: 50,000 × 5 = 250,000 TL in gross severance pay. Only stamp tax at a rate of 0.759% is deducted from this amount.

Example 2: If an employee with a gross wage including benefits of 90,000 TL and 5 years of service leaves in November 2026, the ceiling of 73,729.87 TL is used: 73,729.87 × 5 = 368,649.35 TL.

Notice Pay Calculation Example

An employee with a gross wage including benefits of 40,000 TL who has worked for 2 years has a notice period of 6 weeks, or 42 days. 40,000 ÷ 30 × 42 = 56,000 TL in gross notice pay. Income tax and stamp tax are deducted from this amount.

Note: These calculations are general examples. Actual amounts may vary depending on bonuses and regular benefits such as transport and meal allowances.

When Is the Right to Compensation Lost?

In some cases, the employee loses the right to compensation:

• An employee who resigns voluntarily without a just cause cannot receive severance pay. If they do not observe the notice period, they may also have to pay notice pay to the employer.

• An employee dismissed for misconduct contrary to morality and good faith as listed in the Labour Law (for example, abuse of the employer’s trust, unexcused absence or misleading statements when being hired) cannot receive severance or notice pay.

The Situation for New Graduates, Interns and Freelancers

• New graduate employees have the same compensation rights as other employees as long as they work under an employment contract.

• Students doing compulsory internships cannot receive severance or notice pay because they are in an educational program.

• Freelancers and project-based workers generally cannot benefit from these rights because they are not bound by an employment contract. However, the relationship of people who in practice work continuously and dependently for one employer may be recognized as employment by a court decision.

Points to Keep in Mind When Receiving Compensation

• The severance pay ceiling is updated every January and July; the ceiling in effect on the termination date applies.

• Only stamp tax is deducted from severance pay, while income tax and stamp tax are deducted from notice pay.

• In compensation calculations, regular benefits such as meals, transport and bonuses are taken into account in addition to the gross wage.

• Mediation: Applying to a mediator is mandatory before filing a lawsuit for compensation claims.

• Statute of limitations: Severance and notice pay claims must be made within 5 years of the date the contract ends.

Conclusion: Knowing Your Rights Prevents Losses

Severance pay and notice pay are among the most basic employee rights everyone should know. Knowing these rights in situations such as dismissal, resignation or retirement prevents financial losses and helps you make the right decisions.

Note: This article is for general information purposes only. For your specific situation, we recommend consulting an employment law expert.

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