THE CAP FOR SEVERANCE PAY, APPLICABLE FROM JANUARY 1, 2026, TO JUNE 30, 2026, HAS BEEN ESTABLISHED.

It is well established that the annual severance pay cannot surpass the maximum retirement bonus allocated for one year of service to the highest-ranking civil servant, as stipulated by the Civil Servants Law and the Turkish Republic Retirement Fund Law No. 5434. This amount is adjusted annually in accordance with inflation rates and is publicly announced in January and July.

The General Circular No. 1, dated January 6, 2026, and numbered 27998389-010.06.02-4481518, issued by the General Directorate of Public Financial Management and Transformation of the Ministry of Treasury and Finance, revises the cap on severance pay for employees to 64,948.77 TL, effective from January 1, 2026. The circular specifies that this provision will remain in effect from January 1, 2026, to June 30, 2026.

As the change is set to take effect on January 1, 2026, the difference in severance pay must be disbursed to personnel whose employment contracts are terminated and who qualify for severance pay after this date.