How much will severance pay be in the new year? Expert explains

For those planning their retirement, the severance pay ceiling is an important topic that is updated every year. Predictions regarding how much this limit will increase in 2025 have already begun to be made.

According to the Labor Law, the severance pay ceiling is determined based on the retirement bonus paid for one year of service to the highest-ranking civil servant.

Türkiye newspaper columnist and Chief SGK Expert İsa Karakaş stated in his article titled "How much will severance pay increase in the new year?" that the 2024 severance pay ceiling was set at 35,058.58 TL for the period of January 1 - June 30, and rose to 41,828.42 TL with the update made to civil servant salaries in July.

Stating that this figure is valid until the end of 2024, Karakaş announced that a new update will be made in 2025.

Karakaş said, "In January 2025, the severance pay ceiling will be updated again along with the salary increases to be made for civil servants.

The updates are expected to be made in conjunction with the 6 percent raise rate that will be reflected in civil servant salaries and potential inflation adjustments," he stated.

Chief SGK Expert Karakaş predicted that the severance pay ceiling could increase by approximately 10 percent.

Karakaş said, "In this case, the severance pay ceiling could rise to approximately 46,011.26 TL in 2025. For example, a worker earning 65,000 TL would be entitled to 41,828.42 TL in severance pay if they retire before the end of 2024, while this figure would be 46,011.26 TL if they retire in 2025. In other words, the date of leaving the job stands out as an important factor in terms of severance pay. Workers who retire in 2025 will receive approximately 5,000 TL more in severance pay compared to those working in the period before retirement."

For this reason, Karakaş advised employees planning their retirement to make their decisions by taking these projections into account.