Türkiye: The Upper Limit for Severance Payment Increased
Authors: Ipek Unlu Tik and A. Kaan Baser
The upper limit regarding severance payment calculations in Türkiye has been increased for the dates between 01.01.2026 – 01.07.2026.
The circular letter of the Ministry of Treasury and Finance has been issued on 06.01.2026. Accordingly, starting 01.01.2026 until 01.07.2026, the upper limit regarding severance payment calculations has been determined as TRY 64,948.77.
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 64,948.77. Employees with monthly salaries lower than the upper limit amount shall not be affected.
The previous upper limit, which was in effect between 01.07.2025 – 31.12.2025, was TRY 53,919.68.
Key Points
- The upper limit regarding severance payment calculations in Türkiye has been increased to TRY 64,948.77.
- The increased amount will be effective between the dates 01.01.2026 – 01.07.2026.