2026 Period I Severance Pay Amount

Severance pay is a financial right defined within the framework of Turkish Labor Law legislation as a wear and tear share and future security for employees, the calculation of which is indexed to specific ceiling and floor wages. Following the legal limits applied in the second half of 2025, the updates in civil servant salary coefficients with the transition to 2026 redefine the severance pay ceiling figure.

2025 Period II Data and Current Situation Analysis

In accordance with the circular numbered 27998389-010.06.02-4098345 published by the Ministry of Treasury and Finance on July 7, 2025, civil servant salary coefficients were rearranged to be effective from July 1, 2025. In line with this regulation, the income tax-exempt severance pay ceiling to be applied in the period of July 1, 2025 – December 31, 2025, has been registered as 53,919.68 TL. This amount represents the maximum unit price to be applied for employees whose employment contracts are terminated and who are entitled to severance pay within the relevant period.

Transition to 2026: Updated Severance Pay Ceiling

The implementation period ending on December 31, 2025, has been replaced by new financial data effective as of January 1, 2026. According to the circular titled “Financial and Social Rights” (No. 27998389-010-06-02-4481518) published by the Ministry of Treasury and Finance on January 6, 2026, civil servant salary coefficients have been recalculated.

Based on this coefficient increase, the tax-exempt severance pay ceiling to be applied for the period of 01.01.2026 – 30.06.2026 has officially been set at 64,948.77 TL.

The Importance of Termination Date During Year-End Transitions

In labor law, the calculation of severance pay is based on the ceiling rate in effect on the date the employment contract is terminated. For terminations occurring until the end of business on December 31, 2025, the previous period’s ceiling (53,919.68 TL) applies. However, for terminations occurring on or after January 1, 2026, calculations will be based on the new ceiling of 64,948.77 TL. This situation increases the total severance amount by approximately 20.4% for employees whose gross salary exceeds the previous ceiling.

Frequently Asked Questions (FAQ)

1. What is the severance pay ceiling for 2026? According to the January 2026 circular from the Ministry of Treasury and Finance, the severance pay ceiling for the first half of 2026 is 64,948.77 TL.

2. How does the 2026 minimum wage affect severance pay? The lower limit (floor) of severance pay is indexed to the gross minimum wage. The new gross minimum wage determined for 2026 represents the lowest unit rate applicable in severance calculations. The ceiling, however, is determined by civil servant salary coefficients and stands at 64,948.77 TL.

3. If an employee’s resignation or termination date shifts to January 2026, do they benefit from the new ceiling? Yes. All employees whose contracts end on or after January 1, 2026, will receive their payments based on the updated ceiling of 64,948.77 TL, provided their gross salary is at or above this level.

4. What deductions are made from the severance pay ceiling? The portion of the severance pay that does not exceed the ceiling (64,948.77 TL) is exempt from income tax. Only a stamp tax (damga vergisi) at a rate of 0.759% (7.59 per thousand) is deducted from this amount. Any voluntary additional payments exceeding the ceiling are taxed as regular salary income.