Turkey: The Upper Limit for Severance Payment has been Increased

Authors: Ipek Unlu Tik and A. Kaan Baser

The upper limit regarding severance payment calculations in Turkey has been increased for the dates between 01.07.2025 – 31.12.2025.

The circular letter of the Ministry of Treasury and Finance has been issued on 07.07.2024. Accordingly, starting from 01.07.2025 and until 31.12.2025, the upper limit regarding severance payment calculations has been determined as TRY 53.919,68.

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 53.919,68. Employees with monthly salaries lower than the upper limit amount shall not be affected.

The previous upper limit, which was in effect between 01.01.2025 – 31.06.2025, was TRY 46.655,43.

Key Points

• The upper limit regarding severance payment calculations in Turkey has been increased to TRY 53.919,68.
• The increased amount will be effective between the dates 01.07.2025 – 31.12.2025.