Severance pay ceiling is certain

The Ministry of Treasury and Finance has determined the new severance pay ceiling to be 19,982.83 TL, effective from 1 January 2023. The circular dated January 5, 2023, in which the severance pay ceiling was previously announced as 17 thousand 904.62 TL…

The circular of the Ministry of Treasury and Finance on financial and social rights was published with the signature of Nureddin Nebati, Minister of Treasury and Finance.

Following the publication of the law on increasing the civil servant salary increase from 16.48 percent to 30 percent in the Official Gazette, the new civil servant salary coefficient was determined as “0.433684” by the Ministry. Depending on the new civil servant salary coefficient, financial and social rights were also recalculated.

According to the circular, the severance pay ceiling, which was 15 thousand 371 TL in the July-December period of 2022, will be applied as 19 thousand 982.83 TL as of January 1, 2023.

According to the Labor Law, severance pay is calculated over the last gross price of the employee. Just as for each year of service at the workplace, severance pay is paid in the amount of 30 days’ price. Regardless of the price of the worker, the severance pay cannot exceed the ceiling amount applied for the date of termination of the employment contract.

While a worker whose gross price is 20 thousand TL and who has been working in the workplace for 10 years can receive 153,710 TL severance pay on 31 December 2022, one-to-one personnel will be able to receive 199,828 TL severance pay when the employment contract ends after January 1st.

The monthly gross price is 15 thousand 371 liras. underThe severance pay of those who do will not be affected by the ceiling application.