How much will the severance pay ceiling be in July? 2025 Severance pay calculation: How much is severance pay?
On July 3, inflation figures will be announced and 6-month figures will be determined. Thus, the increased salaries of civil servants and retirees will also be finalized. In addition to these, the severance pay ceiling will also change. According to May figures, a 14 percent increase has been finalized. With June data, civil servants and retirees are expected to receive a raise of around 15 percent. According to this calculation, the severance pay ceiling, which is currently 46,655 TL, will reach 54 thousand TL.
Severance pay is determined by multiplying the employee's last gross salary by each year he/she has worked at the workplace. Fractions of the year are also taken into account during this process. The remaining months are converted to days, the last gross salary is divided by 365 and the daily wage is calculated. The working hours are also converted to days and multiplied by the daily wage. If the calculated severance pay amount does not exceed the annual ceiling amount, only stamp duty is deducted from the amount. If the annual severance pay exceeds the ceiling and the employer will pay the excess, income tax is deducted. The income tax to be deducted may vary between 15 percent and 40 percent depending on the current accumulated tax base.
If the person has not left the job voluntarily or has passed away, if they leave voluntarily, those who meet the condition that the worker should leave the job based on a justified reason, as specified in Article 24 of the Labor Law, can receive severance pay. In addition, those who meet the retirement conditions and apply to the relevant institution and those who have worked at least one year in the same workplace are paid severance pay.
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