Türkiye: The Upper Limit for Severance Payment has been Increased

Author: Ipek Unlu Tik and A. Kaan Baser

The circular letter of the Ministry of Treasury and Finance was issued on 05.07.2024. Accordingly, starting from 01.07.2024 and until 31.12.2024, the upper limit regarding severance payment calculations has been determined as TRY 41.828,42.

In accordance with the new increase, if an employee’s monthly gross salary is higher than the aforementioned upper limit, severance payment must be calculated based on such upper limit, i.e. TRY 41.828,42. Employees with monthly salaries lower than the upper limit amount shall not be affected.

The previous upper limit, which was in effect between 01.01.2024 – 31.06.2024, was TRY 35.058,58.

Key Points:

• The upper limit regarding severance payment calculations in Turkey has been increased to TRY 41.828,42.
• The increased amount will be effective between the dates 01.07.2024 – 31.12.2024.