Which wage elements are included in the calculation?

In practice, in addition to the base salary, recurring benefits such as regular bonuses, transport, meals, and premiums are included as part of the 'dressed-up wage'. For simplicity, this tool uses only the base gross salary.

How many years of service create a right to severance pay?

As a general rule, at least one year of service with the same employer is required, and the employment contract must end for a justified reason listed in the law.

Calculator

Severance Pay Calculator

Estimate severance pay based on the last gross salary and length of service.

This calculation is an approximate estimate; consult a lawyer for a definitive result.

Severance pay is compensation paid by the employer to an employee whose employment contract ends under certain conditions, calculated for each full year of service. The calculation is based on the employee's last gross salary and length of service (years and months), and is capped by a periodically updated ceiling amount.

This tool provides an approximate severance pay figure based on the last gross monthly salary and length of service entered. It does not include additional recurring wage elements (such as regular bonuses, transport, meal allowances, or premiums), so the result is intended only as a preliminary indication.

Legislation Notes

· Article 14 of the (repealed) Labour Act No. 1475 — the surviving provision on severance pay
· Labour Act No. 4857 — general provisions on termination of employment contracts
· The severance pay ceiling is updated periodically by the Ministry of Treasury and Finance

View related practice area

Frequently Asked Questions

The daily wage used in the severance pay calculation cannot exceed a periodically set upper limit (ceiling). This ceiling amount is updated regularly.