How to Calculate Notice Pay in Türkiye

Formula

gross notice pay = (gross wage + benefits) / 30 × weeks × 7

income tax = tax(cumulative base + gross) − tax(cumulative base) − exemption left

net notice pay = gross − income tax − (gross × 7.59 per mille − stamp exemption left)

• gross wage: the last monthly gross wage
• benefits: the monthly total of regular payments such as meals, transport and a twelfth of the yearly bonus
• weeks: the notice period of Labour Law no. 4857 art. 17; weeks × 7 is the number of notice days
• tax(…): the income tax by the wage tariff of the end date’s year (Income Tax Law art. 103)
• cumulative base: the year’s wages up to the end date less the employee social security and unemployment premiums; your last payslip shows it
• exemption left: the part of the exit month’s minimum wage exemption that the month’s wage did not use; the same for stamp duty
• 7.59 per mille: the stamp duty rate on wage payments

Notice pay counts as a wage (Income Tax Law art. 61) and sits on top of the year’s base. The part that crosses into a higher bracket is taxed at that bracket’s rate. In the exit month the minimum wage exemption applies in full, whatever the days worked (Income Tax General Communiqué no. 319 art. 6/2); what the month’s wage does not use comes off the notice pay’s income tax and stamp duty (Revenue Administration ruling of 13 December 2023). No social security premium is deducted (Law 5510 art. 80). Unlike severance pay, there is no ceiling.

Step-by-step example

Start date 1 March 2024, last working day 1 September 2026; last gross wage 50,000 TRY, no benefits, the same wage all year:

1. Service, the start day and the last day both counted, is 2 years 6 months 1 day. From 1.5 to 3 years the notice period is 6 weeks: 6 × 7 = 42 days.
2. Daily gross wage: 50,000 / 30 = 1,666.67 TRY.
3. Gross notice pay: 50,000 / 30 × 42 = 70,000 TRY.
4. Cumulative base: the monthly base is 50,000 − 14% SGK − 1% unemployment = 42,500 TRY. January to August 8 × 42,500 = 340,000 TRY, one day of September 42,500 / 30 = 1,416.67 TRY; total 341,416.67 TRY.
5. Tax before the exemption: the 20% bracket of 2026 ends at 400,000 TRY. 58,583.33 TRY of the pay at 20% is 11,716.67 TRY, the other 11,416.67 TRY at 27% is 3,082.50 TRY; total 14,799.17 TRY.
6. Exemption left: September’s minimum wage exemption is 5,615.10 TRY (the minimum wage base of 28,075.50 TRY in the 20% bracket). The one-day wage’s tax is 1,416.67 × 20% = 283.33 TRY; 5,331.77 TRY is left.
7. Income tax: 14,799.17 − 5,331.77 = 9,467.40 TRY.
8. Stamp duty: 70,000 × 7.59 per mille = 531.30 TRY. The minimum wage’s stamp duty is 250.70 TRY, the one-day wage’s 12.65 TRY; the 238.05 TRY left comes off: 293.25 TRY.
9. Net notice pay: 70,000 − 9,467.40 − 293.25 = 60,239.35 TRY.

Notice pay by length of service

Last gross wage 50,000 TRY, end date 1 September 2026, the base built from the same wage since January (since April for 5 months):

Limits and common mistakes

• Periods at the limits: the start day and the end day both count, so 01.01.2025–30.06.2025 is exactly 6 months. The calculator counts exactly 6 months as 4 weeks, exactly 1.5 years as 6 weeks and exactly 3 years as 6 weeks; the law gives 8 weeks for “more than three years”. Some lawyers give 8 weeks at exactly 3 years.
• One tax rate: taxing the whole pay at the rate of the last payslip understates the tax when the pay pushes the base into the next bracket. The calculator taxes it bracket by bracket on the cumulative base. Forgetting the exemption left: a worker who leaves early in the month uses little of the month’s exemption with the wage; the rest comes off the notice pay’s tax.
• Who pays: both employers and employees can owe notice pay. An employee who resigns without notice can owe it to the employer.
• Mixing it up with severance pay: notice pay needs no year of service and is subject to income tax; severance pay needs at least one year and only stamp duty is deducted.