Turkish severance (kıdem) and notice (ihbar): the formula, the ceiling, and what calculators get wrong
Kıdem uses a 365-day year and a half-yearly ceiling on the monthly wage. Stamp tax 0.759%, no income tax. Notice pay is the opposite.
Every January and every July a parameter moves: the severance ceiling, the SGK cap, sometimes the minimum wage. Payroll tools that hard-code last year's number silently underpay (or overpay) for six months. The formulae themselves have not moved since 4857; the tables have.
2026 tables this endpoint uses
- Minimum wage: daily 1,101 ₺, monthly gross 33,030 ₺, net 28,075.50 ₺ (RG 26.12.2025/33119).
- Severance ceiling: 64,948.77 ₺ (Jan–Jun 2026), 73,729.87 ₺ (Jul–Dec 2026).
- SGK ceiling: 9 × daily minimum = 9,909 ₺/day, 297,270 ₺/month. Law 7566 raised the multiplier from 7.5 to 9; blogs still quote 7.5.
Pass asOf (defaults to the termination date). A date with no row returns null rates and a warning rather than last year's number dressed up as current.
The kıdem formula
base = min(giydirilmiş monthly gross, ceiling for asOf) gross = base × (completeYears + remainderDays / 365) stamp = gross × 0.00759 net = gross − stamp // no income tax
Complete years are counted on the anniversary, so 1 Aug 2025 → 1 Aug 2026 is 1 year 0 days, not 366/365. The ceiling caps the monthly wage, not the total: a 120,000 ₺ salary in August 2026 is computed on 73,729.87 ₺ per year of service.
Notice (4857 art. 17) and leave (art. 53)
Notice is 2 / 4 / 6 / 8 weeks at under 6 months / 1.5 years / 3 years / more, in calendar months from the start date. Annual leave is 14 / 20 / 26 working days after 1 / 5 / 15 complete years, with a floor of 20 if the employee is under 18 or 50+.
curl -s https://api.temsor.com/v1/tr/labor \
-H 'content-type: application/json' \
-d '{"startDate":"2020-01-15","endDate":"2026-08-15","monthlyGross":45000}'
The response carries the sources next to the numbers. If you only needed "a number", a spreadsheet would do; this is for the system that has to still be right next January.
Frequently asked
Is the result what the employee is owed?
No. The figure is the amount IF the termination reason in 1475 art. 14 / 4857 is met (retirement, just cause, marriage, military service…). Entitlement is a legal question; the endpoint does not answer it.
Why is notice pay higher-taxed than severance?
Kıdem is exempt from income tax; only stamp tax (0.759%) is withheld. İhbar is ordinary taxable income. The endpoint returns ihbar gross and refuses to invent the income-tax withholding, which depends on the employee's cumulative tax base.