Annual leave pay is the pay claim due, under Art. 53 et seq. of Labor Law No. 4857, for annual leave the employee earned but did not use when the employment contract ends for any reason.
What is annual leave pay?
Depending on the length of service at the workplace, the employee has a right to paid leave every year. This right to leave is guaranteed by law. If the employment contract ends before the employee uses this leave, the unused leave days convert into pay and are paid to the employee as annual leave pay.
Like other labor claims, annual leave pay is calculated as gross and net. Income tax, SGK premium and stamp tax are deducted from the payment.
Legal Basis
Labor Law No. 4857 Art. 53–60, the Regulation on Annual Paid Leave and the case law of the 9th and 22nd Civil Chambers of the Court of Cassation.
Annual leave periods
Annual leave periods are determined by the employee's total length of service with the same employer:
| Length of Service | Annual Leave |
|---|---|
| 1 – 5 years | 14 days |
| 5 – 15 years | 20 days |
| 15 years and over | 26 days |
| Under 18 / over 50 | At least 20 days |
Employees working underground are given at least 4 weeks (28 days) of leave each year. Leave periods may be increased by an employment contract or collective bargaining agreement, but may not be reduced.
Annual leave pay calculation formula
Annual Leave Pay = Daily Gross Wage × Unused Leave Days
Daily Gross Wage = Monthly Gross Wage Including Fringe Benefits / 30
Here, the gross wage including fringe benefits is found by adding all additional benefits the employee regularly received to the employee's last gross wage. The daily wage is obtained by dividing the monthly gross wage including fringe benefits by 30.