Severance Pay Ceiling In Turkey 2026: Limits, Calculation And Legal Impact

Severance pay ceiling is not merely a technical calculation item; it is a critical mechanism that determines the actual upper limit of the compensation an employee may receive. Many employees assume that severance pay is calculated based on their last gross salary. In practice, however, this calculation is not absolute. The statutory ceiling creates a direct limiting effect, particularly for high-earning employees, and may result in substantial differences between the expected amount and the amount actually paid. For this reason, each update to the severance pay ceiling should be regarded not only as a numerical increase, but also as a significant change in terms of employee receivables and employer obligations. This article examines the legal framework of the severance pay ceiling, the effect of the new ceiling determined for 2026 on severance calculations, its practical consequences, and the legal risks that may arise in this process.