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The Turkish Statistical Institute (TÜİK) announced the inflation rate for December as 1.03%, while the annual inflation rate was declared as 44.38%. These figures have led to the redefinition of many economic indicators, including the severance pay ceiling. The current severance pay ceiling of 41,827 TL has increased to 46,658 TL with an 11% raise.
HOW IS SEVERANCE PAY CALCULATED?
Severance pay is calculated based on the gross salary for 30 days for each full year an employee has worked for the same employer. The calculation takes into account the gross salary and regularly received additional payments (such as meal and travel allowances). Only stamp tax is deducted from this amount.
SEVERANCE PAY CALCULATION FORMULA:
Total Severance Pay = Gross Salary × Number of Years Worked
EXAMPLE CALCULATION:
Gross Salary: 26,004 TL (gross amount of the minimum wage for the year 2025)
Duration of Employment: 5 years
Total Severance Pay: 26,004 TL × 5 = 130,020 TL
Stamp Tax Deduction:
The stamp tax rate for the year 2025 has been set at 0.759%.
Stamp Tax: 130,020 TL × 0.00759 = 987.85 TL
Net Severance Pay: 130,020 TL - 987.85 TL = 129,032.15 TL
SEVERANCE PAY CEILING IN RECENT YEARS
The annual changes in the severance pay ceiling occurred as follows:
July 1, 2024 - December 31, 2024: 41,828.42 TL
January 1, 2024 - June 30, 2024: 35,058.58 TL
July 1, 2023 - December 31, 2023: 23,489.83 TL
January 1, 2023 - June 30, 2023: 19,982.83 TL
July 1, 2022 - December 31, 2022: 15,371.40 TL
January 1, 2022 - June 30, 2022: 10,848.59 TL
July 1, 2021 - December 31, 2021: 8,284.51 TL
January 1, 2021 - June 30, 2021: 7,638.96 TL
The newly determined ceiling for the year 2025 signifies a significant increase in the severance pay amounts for employees, positively affecting the rights of those who have worked for a long time.
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