What Is Notice Pay?
Definition
Notice Pay (İhbar Tazminatı): The wage of the notice period that the side ending an open-ended employment contract without notice must pay to the other side. It grows with the notice period, which follows the length of service.
Notice pay is the wage of the notice period, owed by the side that ends an open-ended employment contract without giving notice. It replaces the working days the other side lost. The amount follows the length of the notice period, which labour laws set by length of service, and the wage with benefits the worker earned in that time.
Where it appears in the formulas
The notice pay calculator uses gross notice pay = (gross wage + benefits) / 30 × notice days. The result is gross; the deductions of the country’s payroll rules come off it.
Notice pay and severance pay
Severance pay is owed for the years of service when the contract ends; notice pay is owed for the notice that was not given. The conditions and the deductions of each are set by national law.
In Türkiye
Labour Law 4857 art. 17 sets the notice period by length of service: 2 weeks under 6 months, 4 weeks up to 1.5 years, 6 weeks up to 3 years, 8 weeks beyond. Income tax and stamp duty of 7.59 per mille come off the gross; no social security premium is withheld. Severance pay needs at least one year of service and bears only stamp duty. Notice pay has no one-year condition and no ceiling, and income tax is withheld from it.