Annual Paid Leave Calculation

How to Calculate Annual Paid Leave Compensation

1. Annual Leave Duration: The duration of annual leave varies depending on the worker's length of service and age. Specifically:

   • Workers who have worked between 1 and 5 years at the same place are entitled to 14 days of annual leave.
   • Workers who have worked between 5 and 15 years are entitled to 20 days of annual leave.
   • Workers who have worked more than 15 years are entitled to 26 days of annual leave.

2. Special Cases: Workers under the age of 18 and over the age of 50 are entitled to a minimum of 20 days of annual leave, regardless of their length of service.

3. Calculating Annual Leave Compensation: When calculating annual leave compensation, the worker's most recent gross wage is used as the basis. The gross wage includes the worker's salary plus any insurance premiums, taxes, and other deductions made by the state. For example, while a worker earning the minimum wage in 2022 receives a net amount of 4,253 TL, their gross wage is 5,004 TL. Therefore, you should enter the gross amount, which includes taxes and deductions, rather than the net amount deposited into your account each month. If you do not know your gross wage, you can find this information on your payslip.

4. Monthly Allowances: After entering your gross wage, you should also enter the regular monthly allowances provided by your employer. Examples of these allowances include bonuses, transportation and meal allowances, food and clothing allowances, and language compensation. The monthly amount of these regular payments should be entered in the monthly allowances section.

5. Bonuses: The explanations we made for monthly allowances also apply to bonuses. Enter the total annual bonuses you receive in the specified area. You should enter the total amount of bonuses you regularly receive in a year in this section.

6. Concrete Example for Allowances and Bonuses: To illustrate allowances and bonuses concretely: For example, if a worker receives a bonus between 600-900 TL per month, a transportation allowance of 300 TL, and a meal allowance of 500 TL, how much should they enter in the monthly allowances section? The monthly average of bonus payments is 750 TL + the total monthly transportation and meal allowance is 800 TL = 1,550 TL, which should be entered in the monthly allowances section.

   • As for bonuses: If the worker receives a 3,000 TL bonus every three months, they will receive a total of 12,000 TL in one year. This amount should be entered in the annual bonus section.

   • It is important to note that most annual leave compensation calculators do not include monthly allowances and bonuses. This omission significantly reduces the compensation calculation and may lead to the worker's loss. Therefore, do not forget to calculate and enter the monthly allowances and bonus amounts provided by the employer in the relevant sections.

7. Calculation Method: The calculation of annual paid leave compensation is done as follows: The worker's most recent gross wage (gross wage + additional payments) is divided by 30 to find the daily wage. Then, this amount is multiplied by the number of days of annual leave the worker is entitled to. Social Security (SGK) contributions, income tax, and stamp duty are then deducted from the resulting amount. The amount remaining after deductions is the worker's annual paid leave compensation.

8. Important Note: Annual leave rights do not carry over to the next year and cannot be converted into cash.