
Severance Pay Calculation Tool
Thanks to the online severance pay calculation tool, learn quickly and accurately the current severance pay ceiling and the net compensation amount in accordance with the legislation, based on your working time and gross wage information.
What is Severance Pay?
Severance pay is the legal compensation that employees who have worked for the same employer for a certain period of time are entitled to when their employment contract ends. This amount paid by the employer is considered as compensation for the employee's labor during his/her service period. Severance pay is among the fundamental rights of employees under the Labor Law.
How is severance pay calculated?
When calculating severance pay, the employee's total service period in the workplace is taken as basis. Payment is made in the amount of 30 days of gross wages for each full year of work. The remaining months and days are included in the calculation proportionally. Additionally, the severance pay ceiling must not be exceeded. Therefore, it is important to calculate with accurate and up-to-date rates.
What is the Severance Pay Ceiling?
Severance pay cap is the legal limit that determines the maximum annual compensation amount an employee can receive. No matter how high the gross salary is, the calculation is made so that it does not exceed this ceiling amount. This limit is updated every year and must be taken into account in compensation calculations.
Who Can Receive Severance Pay?
Employees who work with an indefinite-term employment contract and have at least one year of seniority are entitled to severance pay under certain conditions. Severance pay may be paid by the employer in cases such as unfair termination, military service, retirement, marriage (for female employees) or resignation for justified reasons. The type of contract and the method of termination directly affect this right.
How to Use the Online Severance Pay Calculation Tool?
Entry and exit dates are entered in the online calculation tool, and then gross salary information is added. The system automatically calculates the total severance period and the compensation amount to be paid. This method offers a fast and practical solution for both employees and employers.
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