Understanding severance pay in Turkey (Kıdem Tazminatı) is essential for employers and employees operating under Turkish labor law. Severance pay is one of the main statutory employment entitlements in Turkey and may become payable when an employment relationship ends under specific circumstances.
In principle, an employee who has completed at least one year of continuous service with the same employer may be entitled to severance pay if the employment contract is terminated for one of the reasons recognized by Turkish legislation.
This guide explains who is entitled to severance pay in Turkey, how severance pay is calculated, when employees can receive severance after resignation, and the specific Social Security (SGK) conditions applicable according to the employee’s first insurance registration date.
What Is Severance Pay in Turkey?
Severance pay, known as Kıdem Tazminatı in Turkish, is a statutory payment made to eligible employees upon termination of employment under certain legally defined circumstances.
As a general rule, an employee must have worked for the employer for at least one year to qualify.
For every completed year of employment, the employee is generally entitled to an amount corresponding to 30 days of their latest gross salary, subject to the applicable statutory severance pay ceiling.
Proportionate severance pay may also be calculated for periods exceeding complete years.
The legal framework for severance pay continues to derive principally from Article 14 of the former Labour Law No. 1475, which remains applicable in relation to severance pay despite the introduction of Labour Law No. 4857.
When Is Severance Pay Paid in Turkey?
Completing one year of service does not automatically mean that an employee receives severance pay whenever employment ends. The reason for termination is critical.
An employee may generally become entitled to severance pay in the following situations.
1. Termination by the Employer
An employee who has completed at least one year of service may generally receive severance pay when the employer terminates the employment contract.
However, an important exception applies where the employer terminates the contract immediately for a justified reason involving conduct contrary to morality and good faith under Article 25/II of Turkish Labour Law No. 4857.
In such cases, the employee may lose their entitlement to severance pay.
2. Termination by the Employee for Just Cause
Severance pay may also be payable when the employee terminates the employment contract for a justified reason under Article 24 of Labour Law No. 4857.
These reasons may include:
- Health-related circumstances;
- Conduct by the employer contrary to morality and good faith;
- Force majeure or other compelling circumstances recognized by law.
Therefore, resignation does not necessarily exclude an employee from receiving severance pay. The legal reason behind the employee’s termination must be examined.
3. Military Service
A male employee who terminates his employment contract because of compulsory military service may qualify for severance pay, provided that the statutory conditions are satisfied.
4. Marriage
Under Turkish law, a female employee may terminate her employment contract voluntarily within one year following the date of her official marriage and claim severance pay.
The one-year period is calculated from the official civil marriage date.
5. Retirement, Disability Pension or Lump-Sum Social Security Payment
An employee may also qualify for severance pay when terminating employment in order to receive:
- A retirement pension;
- A disability pension; or
- A lump-sum payment available under the applicable social security legislation.
6. Meeting Retirement Conditions Except for the Age Requirement
One particularly important provision allows employees to resign and receive severance pay when they have fulfilled the applicable retirement conditions other than the age requirement.
In this situation, the employee must generally obtain an official document from the Social Security Institution (Sosyal Güvenlik Kurumu – SGK) confirming that the relevant conditions for severance entitlement have been satisfied.
The employee then submits this document to the employer when terminating the employment contract.
7. Death of the Employee
If employment ends because of the employee’s death, the severance pay entitlement is paid to the employee’s legal heirs in accordance with the applicable rules.
Severance Pay Eligibility Based on the First Social Security Registration Date
The conditions under which an employee can resign after satisfying retirement-related conditions other than age depend significantly on the date on which the employee was first registered with the Turkish social security system.
Employees who meet the relevant requirements may obtain an SGK document confirming their eligibility and submit it to their employer.
Employees First Insured on or Before 8 September 1999
Employees whose first social security registration was 8 September 1999 or earlier may qualify when they have:
15 years of insurance coverage and at least 3,600 premium contribution days.
Once the applicable requirements are met, the employee may obtain the relevant SGK letter and use it as the legal basis for terminating employment while claiming severance pay.
Employees First Insured Between 9 September 1999 and 30 April 2008
For employees whose first insurance registration occurred between 9 September 1999 and 30 April 2008, the applicable requirements are generally:
25 years of insurance coverage and at least 4,500 premium contribution days
or
7,000 premium contribution days regardless of the insurance period.
These rules are particularly important when assessing whether an employee who resigns can nevertheless claim statutory severance pay.
Employees First Insured on or After 1 May 2008
Different rules apply to employees whose first social security registration occurred on or after 1 May 2008.
For these employees, eligibility may be established without a minimum insurance-duration requirement, provided that the applicable number of premium contribution days has been completed.
The required number of contribution days depends on the year in which the employee first entered the social security system:
| First Social Security Registration | Required Premium Days |
|---|---|
| 1 May 2008 – 31 December 2008 | 4,600 days |
| 2009 | 4,700 days |
| 2010 | 4,800 days |
| 2011 | 4,900 days |
| 2012 | 5,000 days |
| 2013 | 5,100 days |
| 2014 | 5,200 days |
| 2015 | 5,300 days |
| 2016 and later | 5,400 days |
Once the applicable contribution threshold has been reached, the employee may request the relevant documentation from SGK and, subject to the applicable legal conditions, terminate the employment relationship while claiming severance pay.
What Is the Legal Basis for Employees First Insured After 2008?
The severance pay rules applicable to employees whose first social security registration occurred on or after 1 May 2008 are sometimes incorrectly associated solely with the more recent EYT retirement reform.
However, the legal framework predates EYT.
The possibility for qualifying employees to obtain an SGK document based on the applicable premium-day requirements derives from Social Insurance and General Health Insurance Law No. 5510, which entered into force in 2008.
In particular, the relevant framework is based on Article 28 and Provisional Article 6 of Law No. 5510.
The Social Security Institution also issued an instruction dated 1 February 2022, No. 39452619, concerning the issuance of the relevant documentation to eligible individuals.
Therefore, the mechanism applicable to employees first insured from 1 May 2008 is not, in itself, a right created by the EYT reform.
How Is Severance Pay Calculated in Turkey?
As a general principle, Turkish severance pay is calculated on the basis of 30 days of the employee’s latest gross salary for each full year of employment.
For example, if an eligible employee has worked for the same employer for five years, the starting point for the calculation is five times the employee’s 30-day gross wage.
However, employers should not simply multiply the basic monthly salary by the number of years worked.
Depending on the employee’s remuneration package, certain regular and measurable benefits may need to be included in the calculation of the employee’s gross remuneration. At the same time, severance pay is subject to a statutory ceiling that is periodically updated in Turkey.
Partial years of service should also be taken into account proportionally.
For this reason, the final calculation should be performed using the employee’s actual payroll data and the statutory ceiling applicable on the termination date.
Can an Employee Who Resigns Receive Severance Pay in Turkey?
Ordinary voluntary resignation generally does not create an entitlement to severance pay.
However, there are important exceptions.
An employee may potentially resign and remain entitled to severance pay when the termination is based on circumstances recognized by law, including justified termination under Article 24, military service, marriage within the statutory period, retirement, or satisfaction of the applicable retirement conditions other than age.
This distinction is particularly important for employers because treating every employee-initiated termination as a standard resignation can result in an incorrect payroll and termination process.
Why Employers Should Check Severance Eligibility Before Processing a Termination
For companies employing personnel in Turkey, termination should not be processed solely on the basis of whether the employer or employee initiated the departure.
The company should determine:
- The employee’s total length of service;
- The legal reason for termination;
- The employee’s first SGK registration date;
- The employee’s accumulated social security premium days where relevant;
- Whether an SGK eligibility letter has been provided;
- The employee’s gross salary and other regular benefits;
- The statutory severance pay ceiling applicable on the termination date.
These elements determine whether severance pay is due and how the final amount should be calculated.
Managing Severance Pay and Payroll Compliance in Turkey
Turkish employment termination rules can be challenging for international companies because severance entitlement depends on a combination of labor law, social security legislation, payroll records and the specific reason for termination.
Foreign employers operating in Turkey should therefore review each termination individually rather than applying a standard severance rule to every employee.
Working with an experienced local payroll or Employer of Record (EOR) provider in Turkey can help international businesses correctly assess termination rights, calculate statutory payments and maintain compliance with Turkish employment and social security requirements.
Azkan Group supports international companies with payroll, HR administration and Employer of Record services in Turkey, including employee onboarding, payroll calculations, social security administration and employment termination procedures.
For companies employing staff in Turkey without an established local HR infrastructure, local expertise can significantly reduce compliance risks and help ensure that employee departures are handled in accordance with Turkish legislation.
Frequently Asked Questions About Severance Pay in Turkey
How long must an employee work to receive severance pay in Turkey?
As a general rule, the employee must have completed at least one year of service with the same employer and the employment relationship must end for a reason that gives rise to severance entitlement.
How much severance pay does an employee receive?
The general rule is 30 days of the employee’s latest gross remuneration for each year of service, subject to the statutory severance pay ceiling applicable at the time of termination.
Does an employee receive severance pay after resigning?
Normally, an ordinary resignation does not entitle an employee to severance pay. However, Turkish law provides several exceptions, including certain just-cause resignations, military service, marriage, retirement and satisfaction of retirement conditions other than age.
Can an employee receive severance pay before reaching retirement age?
Yes. Employees who satisfy the applicable retirement requirements other than age may, under certain conditions, obtain an SGK eligibility letter and terminate their employment while claiming severance pay.
What is an SGK severance pay eligibility letter?
It is a document issued by the Turkish Social Security Institution confirming that the employee satisfies the relevant social security conditions for claiming severance pay on the basis of retirement eligibility other than age.
Are the rules the same for employees first insured after 2008?
No. For employees first insured on or after 1 May 2008, the required number of premium contribution days varies according to the year of first insurance registration, ranging from 4,600 to 5,400 days under the applicable framework.
Conclusion
Severance pay in Turkey (Kıdem Tazminatı) is a major component of Turkish employment law and must be carefully considered whenever an employment contract is terminated.
Although employees generally need at least one year of service, entitlement ultimately depends on the reason for termination and the employee’s individual circumstances.
Special attention should be given to employees who have satisfied retirement requirements other than age. Depending on their first social security registration date, these employees may qualify for severance pay after obtaining the appropriate documentation from SGK.
For international employers, reviewing severance eligibility before completing an employee’s offboarding process is an important part of maintaining payroll and labor law compliance in Turkey.
