Some compensation related to termination of employment paid in the scope of mutual termination agreement, work loses compensation, job security compensation, and end of work compensation will be considered as wage. However, part of these total payments not exceeding the amount of severance pays will be exempt from income tax.
When an employment contract is ended, various compensations are paid to entitled employees. In practice, treatment of these termination payments from the point of income tax and SSI premiums always causes confusion.
Now with the Omniums Bill (colloquially known as bag law) No. 7103, which is issued in Official Gazette No. 30373, dated 27th March 2018, description of wage in Income Tax 193 is amended by an additional clause as regard to mutual termination payments.