2026 Severance Pay Ceiling Conditions - Calculation Based on Gross Salary

Severance Pay Cap and 2026 Period — Brief Explanation

Severance pay is one of the most important rights that the employer is obliged to pay in case the employee leaves the job. The cap amount to be applied in the calculation for the year 2026 has been determined on a semiannual basis, and this amount directly affects the calculation. Below, the applicable cap for the period from 01.01.2026 to 30.06.2026, calculation steps, durations, costs, and the legal processes to be followed are explained in detail.

Who is entitled to severance pay? (Quick Summary)

At least 1 year of service is required for an employee to acquire the right to severance pay.
Termination situations that give rise to the right to severance pay are evaluated according to the provisions of the Labor Law No. 4857; especially the situations under Article 25 are significant (for example, employer termination, excluding exceptions for termination with just cause).
When calculating severance, the gross wage is taken as the basis; allowances such as overtime, bonuses, and premiums are included in the calculation.

What is the severance pay cap for the 2026 period?

The cap determined on a semiannual basis for the year 2026 has been announced as 64,948.77 TL for the period from 01.01.2026 to 30.06.2026. This cap indicates the maximum severance pay amount to be applied for each full year of service. The determination and publication of the cap are made through Official Gazette notifications; you can access the relevant notification from the source below:

Official Gazette Notification (Cap announcement for 01.01.2026)

Legal Framework and Tax Situation

Legal Source: The principles of severance pay are regulated under relevant legislation including primarily the Labor Law No. 4857; the cap implementation has been preserved in accordance with previous regulations.
Source of the Cap: The severance pay cap is determined based on the highest retirement allowance for state employees as specified in the Retirement Fund Law No. 5434.
Taxes and Deductions: Severance pay is generally exempt from income tax and social security premium; however, stamp tax (0.759%) is applicable. The portion paid by the employer above the cap may be subject to tax and premium obligations.

How is severance pay calculated? — Step by Step (Based on Gross Wage)

The calculation is made by considering the employee's years of service and gross wage. The applicable formula is as follows:

For each full year of service: annual severance amount = applied cap or gross wage (whichever is lower).
Total severance pay = annual severance amount x number of years of employment.

Examples

Gross salary is 50,000 TL, length of service is 10 years → annual gross wage of 50,000 TL is below the cap. Total severance = 50,000 x 10 = 500,000 TL.
Gross salary is 70,000 TL, length of service is 10 years → since the annual gross wage exceeds the cap, the cap is applied. Total severance = 64,948.77 x 10 = 649,487.70 TL.

Process and Procedure — Step by Step Roadmap

Eligibility Check: First, the employee's length of service and reason for termination are evaluated (Article 25 and related provisions of the Labor Law No. 4857).
Notice: The employee can notify the employer of the severance pay request through a notarized notice (notary fee is approximately between 500–1,000 TL).
Payment Period: After the notice, the employer is generally expected to make the payment within 10 business days.
Mediation: If the payment does not occur, a mandatory mediation process begins (application for mediator under Law No. 7036 is generally made within 1 month from the date of termination).
Lawsuit Filing: If mediation is unsuccessful, a lawsuit is filed in the labor court with a minute; the lawsuit fee is 2% of the gross wage.
Enforcement and Follow-up: When the court decision becomes final, enforcement proceedings are initiated; enforcement fees and attorney fees are calculated during the process.

Durations and Statute of Limitations

Acquisition of Severance Right: At least 1 year (365 days) of employment is required.
Application for Mediation: There is a requirement to apply to the mediator within 1 month from the termination date (Law No. 7036).
Statute of Limitations for Lawsuits: The statute of limitations for severance claims is generally 5 years (starts from termination date).
Time Limit for Enforcement Proceedings: Enforcement proceedings can be initiated within 10 years from the date the court decision becomes final.
Cap Update: The severance pay cap is updated on a semiannual basis (January–June, July–December).

Cost Items — Approximate Figures for 2026 Period

Annual Severance Pay Cap: 64,948.77 TL (01.01.2026–30.06.2026).
Stamp Tax: 0.759% (for example: for a severance of 500,000 TL ~3,795 TL).
Mediation Fee: ~120 TL in 2024; may increase in subsequent years due to inflation.
Lawsuit Fee: 2% of gross wage (for example, 1,000 TL for 50,000 TL).
Attorney's Fees: Varies according to bar tariff and nature of the file; minimum amounts and rates are generally around (example ranges are in the provided data).
Enforcement Fee: 7.5% of the compensation during the collection phase + attorney fees if any.

Supreme Court and Precedent Applications

The decisions of the Supreme Court are particularly instructive regarding the scope of the gross wage concept and the implications of the cap application. Precedent decisions include explanations regarding the inclusion of premiums, bonuses, and similar elements in the gross wage and how the cap is applied. In practice, the application of the cap is common among high-salaried employees, and payment above the cap is at the discretion of the employer; the exceeding portion may be subject to tax and premium obligations.

Practical Tips — Pre-Claim Checklist for Severance

Check your service records (social security service statement) and employment contract.
Gather documents for payments such as bonuses, overtime, and premiums; important for gross wage calculation.
Conduct a preliminary assessment with your attorney before preparing the notice; the correct request amount and proof method affect the success of the process.
Present your evidence completely during mediation participation; mediation often provides a quick solution.

The Role of Korkmaz Law Office as İzmir Labor Lawyer

Severance pay files contain technical details both in calculation and procedure. As an experienced team in labor rights in İzmir, Korkmaz Law Office conducts a comprehensive legal assessment of your file; provides strategic support in the phases of accurate determination of gross wage, preparing the notary notice, conducting the mediation process, and if necessary, following up on the lawsuit in the labor court. Depending on the nature of the file, advice is given on evidence planning, protection of rights, and cost-effective solutions.

Conclusion

The 2026 semiannual cap of 64,948.77 TL plays a decisive role in severance pay calculations. During the calculation, gross wage, length of service, and applicable cap should be evaluated together. Considering durations, the mandatory mediation requirement, and the statute of limitations helps prevent loss of rights.

Disclaimer

This article is prepared for informational purposes and does not substitute for individual legal advice. Severance pay amounts and legal regulations may change over time; it is necessary to examine Official Gazette notifications and updated forms of relevant legislation for accurate and current information. It is important to consult with a specialized labor lawyer for assessment regarding the specific circumstances of your file.