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Severance Pay Ceiling
See the severance pay ceiling in effect on the end date and calculate your net severance amount.
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Severance Pay Ceiling Information
Statutory ceiling amount in effect today:
Severance pay ceilings for all periods
| Period | Severance Pay Ceiling |
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Calculate Net Severance Pay
Enter your gross wage and your employment start and end dates.
Severance Pay Result
This is a preliminary calculation. The detailed calculation of notice pay, overtime, national and public holidays (UBGT) and annual leave claims together with severance pay is in the Labor Claims module.
What is the severance pay ceiling?
Severance pay is paid in the amount of 30 days of the employee's gross wage including fringe benefits for each full year of service; periods beyond full years are calculated proportionally. However, the amount payable for one year cannot exceed the maximum retirement bonus payable for one year of service to the highest-ranking civil servant under Law No. 5434 (Labor Law No. 1475, Art. 14). This limit is called the severance pay ceiling.
The ceiling changes twice a year, in January and July, together with the civil servant salary coefficients. The calculation is based on the ceiling in effect on the date the employment contract ended. The table on the page shows the ceilings for all periods, updated from the panel.
Sample calculation
For an employee whose monthly gross wage including fringe benefits is above the ceiling, severance pay is calculated on the ceiling on the end date instead of the wage: Gross severance pay = Ceiling × (Total days ÷ 365). If the wage is below the ceiling, the employee's own wage is used. Only stamp tax of 7,59 per thousand is deducted from the gross amount; severance pay is exempt from income tax (GVK Art. 25/7).
For entitlement conditions, the components of the gross wage including fringe benefits and Court of Cassation decisions, see the severance pay guide.
Frequently asked questions
When does the severance pay ceiling change?
The severance pay ceiling changes twice a year, in January and July, when the civil servant salary coefficients are updated.
The ceiling of which date applies to severance pay?
The ceiling in force on the date the employment contract ended (termination) applies. The ceiling on the employment start date or the payment date is not used.
Is tax deducted from severance pay?
Income tax and SGK premiums are not deducted from severance pay; only stamp tax at 7,59 per thousand is deducted. The gross and net amounts are therefore very close to each other.
How many years of work are required to be entitled to severance pay?
The employee must have worked for the same employer for at least 1 year, and the contract must have ended for a reason listed in the law (unjust termination by the employer, termination for just cause by the employee, retirement, military service, marriage, etc.).
Last updated: · This page provides general information; it does not replace legal advice.