Significant increase in 2025 severance pay for minimum wage earners: How much will it be in the new year?

With the changes in minimum wage and civil servant salaries, the floor and ceiling amounts for severance pay are also on the agenda for employees. The calculations, which are eagerly awaited by all employees—low-wage, high-wage, blue-collar, and white-collar—have been shared by SGK Chief Specialist İsa Karakaş.

Karakaş calculated the 2025 severance pay down to the last cent based on the minimum wage forecast. Severance amounts will be determined based on criteria such as the employee's gross salary and length of service. Severance pay stands out as a critical right for employees in the new year as well.

İsa Karakaş's statements on the subject are as follows:

"Minimum wage earners, low-wage earners, high-wage earners, blue-collar workers, white-collar workers—all employees are wondering how much their severance pay will increase.

First, let's evaluate it based on the minimum wage. Severance pay is calculated based on a gross minimum wage of 20,000. When a person who has worked for 10 years multiplies it by 20,000, they will receive around 200,000 liras in severance pay in 2024. According to the news in Ekonomim, only a very small stamp tax is deducted from severance pay. No social security premium or income tax deductions are made.

According to the calculation I have made, the gross wage will be around 26,500. Therefore, while a minimum wage earner would receive monthly severance pay based on 20,000 liras when retiring in 2024, this severance pay of 20,000 liras will rise to 26,500 liras when they retire or leave their job in 2025. This means there is a difference of 6,500 liras for each year.

A minimum wage earner with 10 years of service will receive 65,000 liras more in severance pay when they retire in 2025. If they have 20 years of service, there will be a severance pay difference of 130,000 liras. Therefore, those working on minimum wage can calculate their severance pay in this way.

Currently, the severance pay ceiling is 41,822 liras. This means that the highest severance pay that those retiring in 2024 will receive is 41,822 liras for each year.

How much will the severance pay be for a white-collar worker who does not retire in 2024 but retires in 2025, receives a retirement eligibility letter, or leaves their job in 2025 for any reason?

We calculate this based on civil servant salary coefficients. Based on the calculation I have made, also taking into account the November inflation, I foresee the severance pay ceiling, which is 41,822 liras, rising to 46,430 liras. So, if you ask how much of a difference there is for each year, we can say that a difference of around 4,600 liras will occur.

White-collar workers and high-wage earners who leave their jobs and retire in 2025 instead of 2024, or who become entitled to severance pay in any way, will receive 4,600 liras more in severance pay compared to 2024.

Therefore, for a white-collar, high-wage earner with 10 years of service, a severance pay difference of 46,000 liras arises if they have 10 years of service, and 92,000 liras if they have 20 years of service, depending on the increase in the severance pay ceiling. In summary, we can say that the severance pay ceiling will change for minimum wage earners and high-wage earners in 2025."