Severance Pay Ceiling for 2021 2nd Term Announced

Severance Pay Ceiling for 2021 2nd Term Announced

The Seniority Based Salary Ceiling valid between 01.07.2021 and 31.12.2021 has been determined as 8,284.51 TRY.

As of July 1, the severance pay to be calculated for the employees who have been terminated and deserved severance pay should be calculated considering the seniority ceiling determined as 8,284.51 TRY.

Despite being dismissed on 1 July and after, the severance pay ceiling is not yet determined, paid to employees who quit their job over the previous ceiling.

2021 Severance Pay Ceiling
  1.Term2.Term
 01.01.2021 – 30.06.202101.07.2021 – 31.12.2021
2021 Severance Pay Ceiling 7.638,96 TRY8.284,51 TRY

What is Severance Pay?

The Severance Pay is the most important payment for workers who work under the Turkish Labor Law. Workers are entitled to severance pay upon completing 1 year under the same employer. 

Severance pay, as regulated in Article 14 of the Abolished Labor Law No. 1475, is calculated as monthly wage times each year worked. All the remaining months and days are also included in the severance pay calculation. The wage taken into account in this calculation is the gross wage, which includes the additional payments as well as the main wage earned in return for the work.

A ceiling amount has been determined for the gross wage, including the seniority basis wages. The Severance Pay ceiling, which is determined as the retirement bonus of the highest civil servant, is updated every year with the salary hike of civil servants twice a year.

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