Notice pay calculator
With the notice pay calculator, you can easily calculate the notice pay amount based on the employee's tenure and salary. Quickly determine the notice period and notice pay amount in compliance with the Labor Law.
Important
This tool is for information only and produces approximate results based on generally accepted calculation logic. It does not replace professional assessment of a specific case; the final calculation should be made by an authorised professional.
What is Pay in Lieu of Notice?
Severance pay in lieu of notice is a compensation paid if the parties do not comply with the legally required notice period when terminating an employment contract. The employee or the employer must notify the other party a specific period in advance when terminating the contract. If this notice period is not observed, the salary corresponding to the notice period is paid as severance pay in lieu of notice. With the notice pay calculator, the notice pay to be paid can be easily calculated based on employment duration and salary information.
How to Calculate Severance Pay?
When calculating severance pay in lieu of notice, the employee's total length of service at the workplace is taken into account. According to the Labor Law, the notice periods are determined as follows:
Employees with 0–6 months of service: 2 weeks
6 months – 1.5 years: 4 weeks
1.5 years – 3 years: 6 weeks
More than 3 years: 8 weeks
When calculating notice pay, these periods are multiplied by the employee's gross salary. The notice pay calculator automatically takes these periods into account to quickly calculate the amount to be paid.
Who Pays Severance Pay?
The payment of notice pay is made by the party that terminates the employment contract without complying with the notice period. If the employer dismisses the employee without complying with the notice period, notice pay is paid to the employee. Likewise, if the employee resigns without complying with the notice period, they may have to pay notice pay to the employer.