Turkey severance pay ceiling expected to rise in 2027

Social Security Specialist İsa Karakaş has provided analysis regarding upcoming changes to severance pay (kıdem tazminatı) calculations in Turkey. Due to the significant portion of the workforce earning minimum wage or near-minimum levels, annual updates to the base pay are expected to directly impact these employees.

Currently, the severance pay ceiling is set at 73,729.87 TL, a figure calculated based on five specific components including monthly indicators and coefficients for civil servants. This rate remains in effect until January 1, 2027. Karakaş noted that the new ceiling for 2027 will be recalculated in parallel with civil servant salary increases, with estimates suggesting it could exceed 79,000 TL.

Karakaş also highlighted a shift in dynamics where low-wage earners may see proportional severance gains at least 22% higher than high-wage earners. He advised employees planning for retirement to be mindful of the January 1 threshold, as updates to the base and ceiling rates will significantly influence final payouts.