Severance Pay in Turkey for Foreign Employees: 2026 Guide

Foreigners working in Türkiye (Turkey) are often unsure whether Turkish termination rules apply to them, especially when the contract was signed abroad or refers to another country's law. In most cases, severance pay in Turkey is owed to foreign employees on the same terms as to Turkish colleagues. This guide explains who qualifies, how the amount is calculated with the ceiling valid in the second half of 2026, and how to claim it.

Who is entitled to severance pay in Türkiye?

Severance pay (kıdem tazminatı) is still governed by Article 14 of the old Labour Law No. 1475, which remained in force when Labour Law No. 4857 replaced the rest of that law. You need at least one full year of service with the same employer, and the contract must end in one of these ways:

• the employer terminates, unless it is for misconduct of the kind listed in Labour Law No. 4857 art. 25/II (for example dishonesty or violence);
• you resign for just cause under art. 24, for example because wages are not paid correctly, you are harassed or you were misled about essential terms;
• you leave for compulsory military service, to receive an old-age or disability pension, or after completing the insurance and premium days for a pension;
• a female employee leaves within one year of marriage;
• the employee dies, in which case the payment goes to the legal heirs.

An ordinary resignation without just cause does not give a right to severance pay. Periods worked for the same employer are added together, even with breaks, and a transfer of the business does not interrupt service; however, severance pay is never paid twice for the same period (art. 14).

Does your nationality or contract law matter?

Turkish labour law protects everyone working in Türkiye. Even if your contract chooses another country's law, you keep the minimum protection of the mandatory rules of the country where you habitually work (MÖHUK art. 27), and Turkish courts have jurisdiction if you habitually work in Türkiye (art. 44).

Work permits raise a separate question. The Turkish Code of Obligations (art. 394/3) provides that an employment contract whose invalidity is discovered later has all the effects of a valid contract until the relationship ends. This rule is relevant to claims for work already performed without a permit, but the outcome depends on the facts. Working without a permit exposes both employer and employee to administrative fines and the employee to deportation (Law No. 6735 art. 23; Law No. 6458 art. 54), so a missing permit should be resolved rather than relied on.

Many foreigners work on fixed-term contracts that match the work permit. According to Court of Cassation (Yargıtay) practice, severance pay is generally due when a fixed-term contract ends simply because its term expires, since the contract has not ended through the employee's resignation; the outcome depends on the facts of the case. Repeated fixed-term contracts without an essential reason are treated as indefinite from the start (Labour Law No. 4857 art. 11).

How is severance pay calculated?

The employer pays 30 days' wages for each full year of service, and the same rate pro rata for any part-year. The basis is your last gross wage, including regular money and in-kind benefits such as meal, transport or housing allowances, the so-called dressed wage (giydirilmiş ücret). Contracts or collective agreements may provide for more than 30 days (art. 14).

However, the amount per year of service may not exceed a ceiling linked to the maximum retirement bonus of the highest-ranking civil servant. According to the Ministry of Labour and Social Security, the ceiling for 01.07.2026–31.12.2026 is TRY 73,729.87 per year of service (as of 29.09.2026). Severance pay due under Law No. 1475, which is itself capped at this ceiling, is exempt from income tax (Income Tax Law No. 193 art. 25/7).

What else can you claim when the job ends?

For indefinite contracts, the party ending the contract must give notice or pay wages for the notice period (notice pay, ihbar tazminatı, Labour Law No. 4857 art. 17). Pay for unused annual leave is also due, based on the wage at the end of the contract (art. 59).

How do you claim unpaid severance pay?

If you are leaving Türkiye, a power of attorney allows a lawyer to handle mediation and court proceedings while you are abroad. More on employment matters is available on our employment law page. As each termination turns on its own facts, individual legal advice is recommended before you sign a settlement or release.