Severance pay also crushed by inflation: Here are the 2025 severance pay rates!

The Turkish Statistical Institute (TÜİK) announced the December inflation rate as 1.03 percent and the annual inflation rate as 44.38 percent.

With these figures, the severance pay ceiling for 2025 has been set at 46,659 TL.

Prof. Dr. Aziz Çelik stated that determining the increase in the severance pay ceiling based on the civil servant salary increase rate instead of the 6-month inflation rate leads to significant losses for employees.

Çelik made the following statements:

"If the severance pay ceiling, which was 41,828 TL in July 2024, had increased at the inflation rate (15.75 percent), it would have reached 48,414 TL. However, with the 11.54 percent rate determined based on the civil servant salary increase, the ceiling remained at 46,659 TL. This difference causes a total loss of 44,000 lira in 25 years of severance pay."

SEVERANCE PAY IS BEING CRUSHED UNDER INFLATION

Stating that for severance pay to be protected, increase rates must be above inflation, Çelik called for regulations to be reviewed to prevent the loss of rights for employees.

WHAT IS SEVERANCE PAY?

Severance pay is calculated based on 30 days of gross salary for each full year an employee has worked for the same employer.

When calculating, the employee's gross salary and continuously received additional payments (e.g., travel and meal allowances) are taken into account. Only stamp duty is deducted from severance pay.

Severance Pay Calculation Formula:

Total Severance Pay = Gross Salary × Number of Years Worked

Example Calculation:

Gross Salary: 26,004 TL (2025 gross minimum wage amount)

Duration of Employment: 5 years

Total Severance Pay = 26,004 TL × 5 = 130,020 TL

Only stamp duty is deducted from this amount. The stamp duty rate for 2025 is 0.759%.

Stamp Duty: 130,020 TL × 0.00759 = 987.85 TL

Net Severance Pay: 130,020 TL - 987.85 TL = 129,032.15 TL

This calculation was made using the 2025 gross minimum wage amount and the stamp duty rate. Results will vary for different gross salaries and durations of employment.