Pursuant to the Article 14/Paragraph 13 of the Labor Law No. 1475, the annual amount of severance pay to be paid to employees subject to Labor Law shall not exceed the maximum retirement bonus to be paid to the highest civil servant for one year of service.
In accordance, pursuant to the Circular on Financial and Social Rights published by the Ministry of Treasury and Finance on the date of 05/07/2024, the new severance pay cap applicable for the period of 01/07/2024-31/12/2024 has been announced as 41.828,39 Turkish Liras including the stamp tax.
It is advised that the parties who will terminate their employment contracts take the announced updated severance pay cap as basis in their compensation calculations.