Notice Pay Calculator
Notice pay is a type of compensation paid to an employee or employer when an employment contract is terminated without adhering to the legally required notice periods.
Key Terms
- Notice Period: The amount of time an employee or employer must give before terminating an employment contract.
- Notice Pay: Payment in lieu of notice when termination or resignation occurs without serving the full notice period.
- Net Notice Pay: The final amount received after deducting income tax (15%) and stamp tax (0.759%) from the gross amount.
Notice Periods (Labor Law No. 4857)
According to Turkish Labor Law, notice periods depend on the duration of service:
- Less than 6 months: 2 weeks
- 6 months to 1.5 years: 4 weeks
- 1.5 years to 3 years: 6 weeks
- More than 3 years: 8 weeks
How it is Calculated?
Notice pay is calculated based on the employee's last gross salary. The daily gross wage is multiplied by the number of days corresponding to the notice period.
Example Calculation:
- Monthly Gross Salary: 30,000 TL
- Duration of Service: 2 Years (Notice Period: 6 Weeks = 42 Days)
- Daily Gross: 30,000 / 30 = 1,000 TL
- Gross Notice Pay: 1,000 * 42 = 42,000 TL
- Deductions: Income Tax (42,000 * 0.15) + Stamp Tax (42,000 * 0.00759)
- Net Amount: 42,000 - 6,300 - 318.78 = 35,381.22 TL