In addition to coefficient and additional indicator increases, the severance difference (ikramiye farkı) is paid only in cases of duty-related disability, retirement due to age limit, removal from position without a post, and death while in service. Beneficiaries often wonder how much this payment will be and how it is calculated.
Calculation of the 600-Point Additional Indicator Increase
Under Article 89 of Law No. 5434, the retirement severance payment is made by awarding one month of the pension amount as a lump sum for each full year of service. When calculating a civil servant’s retirement severance, the gross monthly pension amount for one year is treated as the severance payment for that year; for example, if the service period is 30 years, the annual gross amount is multiplied by 30 to determine the total severance for 30 years of service.
There are established compensation reflection rates that determine how additional indicator figures affect the retirement severance. These rates are set out in the Additional Article 70 of Law No. 5434. According to that provision, unless a change is made to the compensation reflection rates due to the 600-point increase, the existing rates remain in force. For the auxiliary services class, which previously had no additional indicator, assigning a 600-point indicator leaves the compensation reflection rate at 55%.
For example, if a civil servant with an existing additional indicator of 2200 receives an extra 600 points, their new indicator becomes 2800. However, the compensation reflection rate would remain at 85% in that case.
How to Calculate Only the Additional Indicator Increase Amount
If you want to calculate only the amount attributable to the additional indicator increase, you can use the following approach and formula:
600 x the civil servant salary coefficient applied in the first half of 2023 (0.433684) = 260.21 TL. Thus, the severance difference for 1 year is calculated as 260.21 TL. Multiply this annual difference by the number of retirement service years to obtain the total severance difference corresponding to a 600-point additional indicator.
If the calculated one-year severance difference or any portion of it is not paid, you may submit a written application to the Social Security Institution’s Public Pensions Department (SGK Kamu Emeklilik Dairesi Başkanlığı) at Mithatpaşa Cad. No. 7, Sıhhiye, ANKARA.