After approval in the TBMM Plan and Budget Commission and referral to the General Assembly, the retirement-without-age-limit (EYT) law is expected to come into force soon. With millions covered by the EYT arrangement, questions remain about how much will be paid for severance pay and other items under the regulation.
Employees who have worked at the same workplace for more than one year are also entitled to severance pay in addition to their salary. Many are asking who will receive how much. According to statements, citizens covered by the EYT regulation are expected to receive their first salaries in March.
HOW MUCH SEVERANCE WILL EYT BENEFICIARIES RECEIVE?
As the EYT law nears final approval, attention has turned to how much severance pay EYT beneficiaries will receive. Those who receive documentation from the Social Security Institution indicating they can retire will be paid severance by their employers. Employers are obliged to make these payments.
Severance pay is calculated as 30 days of the last gross salary for each full year worked at the most recent workplace. The minimum severance amount is determined according to the statutory minimum wage. The maximum amount per year is set based on the civil servant salary coefficient. For the first six months, the ceiling amount has been calculated at 19,982.83 TRY.
WHEN WILL THE EYT BECOME LAW?
After acceptance in the TBMM Plan and Budget Commission, the EYT regulation was referred to the Parliament’s General Assembly. The final step is a decision by the General Assembly, after which the EYT will become law. The law is expected to be approved as early as Tuesday, and more than 2 million citizens are expected to benefit from EYT in the initial phase.
WILL EYT BENEFICIARIES RECEIVE NOTICE COMPENSATION?
Those who retire under the EYT regulation will be entitled only to severance pay. When employment ends due to the granting of a retirement right, notice compensation (termination notice pay) is not paid. Notice compensation applies when the employment contract is terminated for reasons other than retirement.
There is no age requirement for those retiring under EYT. A graduated premium-day condition applies between 5,000 and 5,975 insured days, and the insured-service duration condition requires 20 years for women and 25 years for men. Those who cannot retire under EYT may still be able to claim severance pay if they resign in line with the relevant rules.