Although retired, many people continue working and wonder about their entitlement to severance pay (kıdem tazminatı). Those who keep working without collecting severance at the time of retirement may later be eligible for severance pay whether they resign or are dismissed. After the government’s EYT regulation, questions arose about whether people who retire under that scheme and continue working can benefit from severance pay. Below are the details about severance rights following the EYT changes.
Based on higher court rulings, employees can claim severance covering their entire working period. The five-year statute of limitations for these claims starts not from the date the insurance exit was processed due to retirement, but from the date the employee fully leaves the job. Private-sector workers can claim severance for the periods spent at their most recent workplace only, while civil servants can claim severance for their public service time. If an employment contract is terminated without valid reason and the worker wins a reinstatement lawsuit, severance and notice pay are due for the idle period as well. Female employees who leave work for reasons such as marriage—whether twice or more—can be entitled to severance in these circumstances, except when the remarriage is with the former spouse; in that case the severance right does not apply.
Frequently asked questions about severance pay:
Question 1: I received my first retirement pension and continue working at the same workplace, with my severance right preserved. I did not sign any agreement about severance during this period. When I leave, will severance be calculated on the gross salary I had at the time of retirement?
- Some companies that use Treasury-backed EYT loans pay severance to employees who continue working; others only commit to paying when the employee leaves. Severance is calculated based on the last gross salary the employee received when leaving the job. For each year worked at the workplace, one month’s (30 days) gross pay is paid. For those who continue working without collecting severance, the total working time before and after retirement is combined whether the employer dismisses them or they resign. In that case, the severance is paid based on the last gross salary. For example, if your gross salary was 16,000 TL when you retired in April but rose to 22,000 TL when you left in 2026, the latter amount will be used. If you have 20 years of service when you leave, you may be entitled to nearly 440,000 TL in severance. If you choose to formally retire, you can receive severance covering both the pre- and post-retirement periods together.
Question 2: Do those whose severance balance was not reset when their pension started retain rights such as notice pay and annual leave?
- An employee who retires but continues working must still have a formal insurance exit recorded. Such employees remain eligible for severance. Under the Labor Law, employees who continue working after retirement have the same rights as other employees. A retired employee retains rights to severance, notice pay, and annual leave. Employees who are dismissed by the employer or who resign for just cause can still receive severance. Those who receive a pension while social security support contributions are paid keep all their rights such as severance, notice pay, and annual leave.
Question 3: If someone collected severance and kept working, can they later claim additional severance for the subsequent period?
- Those who reset their severance to zero in April by collecting it and then continued working while receiving a pension at the same or another workplace cannot claim severance again. However, under Law No. 5510, a person who stops receiving a pension and returns to regular work effectively relinquishes the pension; after that, if they later reapply for a pension, they may be eligible for severance again.
Question 4: Can female employees leave work for reasons such as remarriage or health problems and still receive severance?
- Women may be entitled to severance when leaving due to marriage—even a second, third, or fourth marriage—except when the remarriage is to the former spouse. Retired workers can also claim severance if they terminate employment for health reasons. The Labor Law permits employees to end the employment contract due to health problems; if long-term treatment is required and the termination is supported by a medical board report, severance is payable. For retired employees whose severance balance was reset, the notice period is calculated considering pre- and post-pension periods accordingly.
Question 5: Does annual leave entitlement change for those who retire and continue working?
- Employees who cash out unused leave when taking severance and then continue at the same workplace are treated as new hires regarding annual leave. To earn leave entitlement, one year of service is required, so new employees are entitled to 14 days of leave. After five years at the current job, annual leave increases to 20 days. However, EYT retirees who did not cash out leave before retirement and continue at the same workplace retain leave entitlement based on their original start date at that workplace, according to higher court decisions. Employees who did not reset severance and did not cash out leave at the time of pension can continue to use 26 days of leave annually.
For details on severance calculations, consult our coverage on the topic.
Question 6: Are unused annual leave payments made to those who became eligible for retirement through the EYT regime and then left their jobs?
- Unused annual leave pay is paid when the employment contract ends. Those who retire under the EYT scheme and leave their job can collect pay for unused leave. For those who retire and continue at the same workplace, payment of annual leave wages is left to the employer’s discretion.
Question 7: If a reinstatement lawsuit is ongoing, is the idle period included in severance calculation?
- If a dismissal is found invalid and the worker wins a reinstatement suit, they are entitled to wages and other rights for the idle period whether or not they are actually reinstated. According to the Court of Cassation, if severance, notice, or leave pay was already paid at the time of the invalid dismissal, a recalculation must be made based on the final wage with an additional four months’ idle-period compensation.
Question 8: Can a worker who was employed without social insurance claim severance?
- There is no strict requirement that the claimant must have been formally insured to be eligible for severance. However, the worker must prove the uninsured period with documentation. For this, an application to the provincial social security directorate or centers to obtain a service determination is necessary. Those who cannot fully prove it through documents may still file a service determination lawsuit in labor court within five years. If they win, they can obtain retroactive insurance coverage and become entitled to severance as well.