How Is Severance Pay Calculated? 2026 Up-to-Date Guide

1. Conditions for Entitlement to Severance Pay

For an employee to receive severance pay:

• They must have worked at least 1 year at the same workplace,
• They must have been dismissed for reasons other than their own will, or have left for a justified reason.

An employee who resigns may be entitled to severance only in special circumstances (marriage, military service, retirement, etc.).

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2. Severance Pay Calculation Formula

Formula: Last Gross Salary x Number of Years Worked

That is, the employee's last gross salary and the total time spent at the workplace form the basis of the severance pay. For example: for someone who earns a gross salary of 20,000 TL and has worked for 5 years, the calculation is: 20,000 x 5 = 100,000 TL gross severance pay

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3. What Is the Gross Salary with Benefits (Giydirilmis Brut Ucret)?

In calculating severance pay, not only the salary but also regularly paid additional payments are taken into account.

Items included in the gross salary with benefits:

• Monthly gross salary
• Meal allowance
• Transportation allowance
• Regularly given bonuses and premiums
• All regular payments in cash or in kind

These additional items are included in the calculation because they represent the employee's real income.

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4. Calculation of Time Worked

• Each full year entitles the employee to one salary of severance pay.
• Remaining months and days are added to the calculation proportionally.
• For example: for someone who has worked 5 years and 6 months, the calculation is made over 5.5 years.

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5. Severance Pay Ceiling (2026)

Each year there is a ceiling salary set by the state. The calculated amount cannot exceed this limit. The portion above the ceiling is not taken into account.

The severance pay ceiling for 2026 is approximately 35,000 TL gross. (The exact amount is announced by the Ministry of Treasury and Finance.)

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6. Deductions and Net Payment

Only stamp tax is deducted from severance pay. No income tax or SGK premium is withheld.

That is, the amount to be paid is: Gross Severance - Stamp Tax = Net Severance Pay

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7. Automate Payroll and Severance Processes with Nimbo Yazılım

A mistake in calculating severance pay creates financial risk for both the employer and the employee. Nimbo Yazılım eliminates this risk by digitalizing payroll and human resources processes.

Solutions you can use:

• Mikro Software Consulting Service -> Support in configuring payroll settings correctly
• Mikro Executive Reports -> Monitoring the severance burden with financial statements
• Mikro Cloud Software -> Archiving documents securely

This way, you can manage your severance pay, payroll and salary processes in an automatic, error-free and legally compliant manner.

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Conclusion: Digital Payroll Management Means Reliable Calculation

In calculating severance pay, accuracy and document security are essential. Manual calculation errors harm both employee satisfaction and the business's reputation.

Nimbo Yazılım provides your business with digital confidence through payroll solutions fully integrated with the Mikro infrastructure.