How to Calculate Severance Pay?

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Hesap Makinesi

  • Qualified employee shall be paid a severance pay equal to last 30 days’ gross wages for each full year of employment.
  • For a portion of a year, pro rata payment should be made.  
  • In calculation of the last 30 days’ wage, the wage paid and the some contractual and statutory benefits in kind provided by employer shall be taken into account. Also periodical (annually, quarterly etc.) payments such as premium and bonuses will be added in monthly basis.

 

  • Unused annual leave periods should be paid as wage.
  • There is a cap for severance pay and it is 4.426,13 TL/Year for the first half of 2017. However, this limit may be increased by provisions of employment contracts.
  • However, there is no cap amount for severance pay for press employees. They will be paid a severance pay equal to last 30 days’ gross wages for each full year of employment.
    • Severance payment is subject to stamp tax only, no income tax is applied.

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