The severance pay ceiling increased after the increase in civil servants and pensioners. A coefficient circular was issued for a 30 percent increase in civil servant salaries in January. According to the circular of the Ministry of Treasury and Finance, the new ceiling amount in severance pay has been officially announced. So, how much severance pay in 2023? Here are the details of severance pay calculation.
The severance pay ceiling amount is not determined according to the minimum wage. The annual amount of severance pay is determined by law to not exceed the retirement bonus paid to the highest civil servant for one year of service. So, how much was the new severance pay amount? Severance pay ceiling was applied as 15 thousand 371 liras for the second half of 2022. After the 2022 inflation became clear, the increase in civil servants became clear. President Recep Tayyip Erdoğan announced the news of the new hike for civil servants and retirees and announced that they will apply the salary increase rate as 30 percent. A coefficient circular was issued for a 30 percent increase in civil servant salaries in January. According to the circular of the Ministry of Treasury and Finance, the new ceiling amount in severance pay has been officially announced. According to this; The maximum amount of severance pay increased to 19,982 TL for 2023. In case of termination of any employment contract for a reason that requires severance pay, severance pay in the amount of 30 days’ gross wage is paid for each full year worked. The periods increasing from one year are also included in the calculation by proportioning. During the calculation of severance pay, in addition to the wage paid to the employee, all money and benefits that can be measured in money (road allowance, meal allowance, bonus payments, etc.) are also taken into account. The amount of severance pay paid for each full working year is limited to the severance pay ceiling valid at the date of termination.
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