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The severance pay ceiling that concerns all employees has been clarified with the increase rate based on the 6-month inflation difference in civil servant salaries. For the year 2025, the severance pay ceiling has been determined as 46,655 lira and 43 kuruş. However, the date of termination is also of great importance in addition to the years of service in this ceiling salary.
SEVERANCE PAY CEILING AFFECTS ALL EMPLOYEES
The severance pay ceiling has also been clarified, similar to minimum wage, pension salary, civil servant salary, civil servant pension salary, and the lowest pension salary. For a long time, there has been a discussion about the difference in pension salaries between those retiring in 2024 and those retiring in 2025. There are also significant differences in severance pay over the years.
4,827 TL MORE COMPENSATION FOR EACH YEAR
The severance pay ceiling is calculated based on the retirement bonus paid for one year of service to the highest state employee. Accordingly, the severance pay rates between 2024 and 2025 have been determined as follows:
Ceiling for the July-December period of 2024: 41,828 TL
Ceiling for the January-June period of 2025: 46,655.43 TL
According to the new rates, those retiring in 2025 will receive 4,827 TL more severance pay for each year they worked.
HOW IS SEVERANCE PAY CALCULATED?
To be entitled to severance pay, one must have worked for at least 1 year in a workplace covered by the Labor Law under an employer. The situations in which severance pay is earned are clearly stated in the law.
For each full year of service, the employee is paid severance pay equivalent to 30 days' salary. The same rate applies for periods exceeding one year. However, regardless of how high the employee's salary is, no payment can exceed the severance pay ceiling.
THE IMPORTANCE OF DATE IN SEVERANCE PAY CALCULATION
In calculating severance pay based on the year worked, the number of days of service is also important. For example, there is a significant difference between the severance pay ceiling that can be paid to a person who leaves work on December 31, 2024, and an employee who leaves work on January 1, 2025.
Employee leaving in December 2024: entitled to 41,828 TL severance pay.
Employee leaving in January 2025: entitled to 46,655.43 TL severance pay, even if they worked for the same salary.
INCREASE IN CIVIL SERVANTS' SALARIES AFFECTS SEVERANCE PAY
Civil servant salaries have been increased by 11.54%, but the 6-month inflation difference has been announced as 15.75%. This situation has caused civil servant salaries to fall below inflation, thus leading to a low determination of the severance pay ceiling. As a result, the salary increases determined by collective bargaining have affected not only public employees but also private sector workers in terms of the severance pay ceiling.
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