There are many contentious points in the recent discussions about severance pay. One common question is whether workers who are only waiting to reach retirement age can receive severance pay. Under normal conditions severance pay is paid while waiting for retirement age, but in some cases that entitlement does not apply.
Developments Regarding Severance Pay
One of the most frequently asked questions from those seeking severance pay is whether they can collect it while they are only waiting to reach retirement age. In general, when a worker is eligible for retirement, severance pay is payable. A reform introduced in 1999 established a phased retirement system and linked entitlement to severance pay with meeting retirement age requirements in certain cases.
However, specific conditions must be met to benefit from this option. According to the social security system, the key requirements for retirement are the required number of premium days, length of insured service, and meeting the age condition. In many cases, the required premium days and insured service are completed earlier, and the only remaining condition is reaching the required age.
Under labor law, if an employee has completed the required insured service period and premium days and resigns voluntarily, they can be eligible for severance pay provided their length of service at that workplace is at least one year. To resign after fulfilling the so-called 15-year and 3600-day conditions, the person generally must have been insured before 1999, complete 15 years of insured service, and reach 3600 premium days.
How Will Those Waiting for Retirement Age Retire?
Conditions for receiving severance pay and retiring are set out in Law No. 4447: those who started working before 1981 among women and before 1976 among men can retire after completing 15 years of insured service and 3600 premium days, with women retiring at age 50 and men at age 55 in that category.
Under Law No. 4759, those who met 15 years of insured service by 2002 and completed 3600 premium days for disability, old-age and survivors’ insurance can also retire at ages 50 for women and 55 for men. When the reference date is 2002 and all three conditions are not met simultaneously, different age thresholds apply depending on when the remaining conditions are completed.
Situation of Those Who Do Not Meet Retirement Conditions
For those who did not meet all retirement conditions by 2002, the rules vary by the period when requirements are completed: people who met the conditions between 2002 and 2005 become eligible for retirement at ages 52 for women and 56 for men; between 2005 and 2008 at 54 for women and 57 for men; between 2008 and 2011 at 56 for women and 58 for men; between 2011 and 2014 at 58 for women and 59 for men; and after 2014 at 59 for women and 60 for men.
If the first insurance entry occurred between 1999 and 2008, new entrants generally must meet ages 58 for women and 60 for men. Additionally, those with 25 years of insured service and at least 4500 days of paid premiums may qualify for a retirement pension.
These retirement conditions are also decisive for severance pay entitlement. If a worker only needs to wait for the required age to become eligible for a pension, they can receive severance pay. However, if other retirement conditions are still unmet, the worker cannot apply for retirement and therefore is not entitled to severance pay. Workers waiting for retirement can claim severance pay if they have completed at least one year of service at the workplace.