Severance and Notice Pay Calculation Details and 2026 Ceiling

Ahmet Kıvanç explained how dressing wage elements such as food, transportation, bonuses, and private health insurance are taken into account in severance and notice pay calculations, and announced the severance pay ceiling amount for the second half of 2026.

An employee's right to severance pay is regulated by the currently applicable Article 14 of the Former Labor Law No. 1475. Accordingly, employees who have worked for at least 1 year are paid severance pay in the amount of 30 days' wages for each full year they have worked. While calculations are made over the last wage, for non-fixed wages, the average found by dividing the total wages paid in the last 1 year by the days worked is taken as the basis. In addition to the base wage, benefits such as food, transportation, bonuses, and private health insurance that show continuity are also included in the calculation to form the dressed wage. One-off payments are not included in this calculation.

The dressed wage calculation remains valid for employees whose gross wage is below the ceiling of 73,729.87 TL determined for the second half of 2026. While there is a ceiling application for severance pay, there is no ceiling for notice pay; the entire gross wage and regular payments are taken into account in the notice pay calculation.