Turkish Labor Law
One of the most important rights of the workers is the severance pay if the necessary conditions are met. The most important condition for severance is that the employee has worked for at least 1 year under the employer and the employment terminates due to reasons that deserve severance pay. The employer cannot terminate the employment contract due to the implementation of the termination ban last year. However, the employee’s right to terminate his employment contract continues.
What is the Wage Ceiling Determining Severance?
In order to calculate the severance pay, the employee’s all inclusive wage, including additional benefits, is calculated. In other words, the sum of the cash values of the permanent payment items given to the employee per month should be taken into account. When calculating the severance, there is a cap called the seniority pay ceiling, the maximum monthly wage that is used to calculate the severance pay. The seniority wage ceiling, which will be valid in the first 6 months of 2021, has been determined.
| 2021 Severance Pay Ceiling | ||
| 1st Term | 2nd Term | |
| 01.01.2021 – 30.06.2021 | 01.07.2020 – 31.12.2020 | |
| SEVERANCE PAY CEILING | 7.638,96 TL | – |
The ceiling for severance pay is also the retirement bonus amount of the highest ranking civil servant. For this reason, the factor affecting the seniority ceiling is the increase in retirement bonus for civil servants. As the raise is made for 6-month periods in general practice, the seniority ceiling is determined for the same period. The new severance pay ceiling of 7.638,96 TL will be valid until the new civil servant increase period, 30 June 2021.
