Severance Pay
A 30-day gross salary is paid for each full year. Proportional calculation is made for partial years. Annual ceiling is applied. It is not paid in case of employee resignation.
Severance and Notice Pay Calculation
This tool is primarily for Turkey.
How to Use?
1
Severance and Notice Pay Calculation ${currentYear} |Turkish Labor Law – Free
Enter Your Information
2
Enter starting and leaving dates, reason for termination, last gross salary, and other information.
Do the Calculation
3
Severance pay, notice pay and leave pay are calculated automatically.
See Results
What is this tool for?
Notice Compensation
Notice period between 2-8 weeks is determined according to the working time. If the notice period has not been used, notice compensation is paid. Notice period × Daily gross salary.
Permit Fee
Payment is made for unused annual leave days. Daily gross salary × Unused leave days.
Termination Reason Important
The reason for termination affects the right to compensation. There is a right to severance pay in case of employer termination, termination for justified reasons, and retirement. It does not exist in case of employee resignation.
When should you use this?
Tool Overview
The severance pay calculation tool allows you to calculate severance pay, notice pay, and leave pay according to the Turkish Labor Law. Severance and notice pay are compensations paid to employees according to the Turkish Labor Law. These compensations are provided to protect the rights of the employee in case the employment contract is terminated.
Using this tool, you can calculate your severance pay, learn your notice pay amount, determine your leave pay, and evaluate your rights when the employment contract is terminated.
Who should use it:
Employees, employers, human resources specialists, attorneys, labor law consultants, and anyone with a need for compensation calculation can use this tool.
Common use cases:
Termination of employment contract, severance pay calculation, notice pay calculation, leave pay calculation, and labor law consultancy.
What Problem Does This Tool Solve?
Compensation calculations are difficult and carry risks of error when performed manually, especially when different reasons for termination, partial years, and annual ceilings are involved. For example, when calculating severance pay, full years, partial years, and annual ceiling factors need to be taken into account. This tool performs such calculations instantly and without error.
Users usually look for this tool in these situations: to calculate their rights when the employment contract is terminated, to learn the severance pay amount, to determine the notice pay amount, to calculate leave pay, and to receive labor law consultancy.
Practical examples:
An employee can use this tool to calculate their rights when the employment contract is terminated. An employer can use this tool to determine the compensation amount for the employee. An attorney can perform compensation calculations for their client.
How Does the Tool Work?
The compensation calculation tool calculates severance pay, notice pay, and leave pay according to the Turkish Labor Law. The process proceeds as follows:
Input:
The user enters employment start and leave dates, termination reason, last gross salary, unused leave days, and other info.
Process:
The tool performs calculations based on the entered info:
Calculation of working period (full years + partial years)
Severance pay calculation (including termination reason check)
Notice pay calculation (according to notice period and usage status)
Leave pay calculation (according to unused leave days)
Annual ceiling application
Output:
Calculated compensation amounts, detailed breakdown, and warnings are displayed on the screen.
Common misconceptions:
Some users may think that there is a right to severance pay even in case of employee resignation. However, as a general rule, severance pay is not paid in case of employee resignation. Also, severance pay is limited by an annual ceiling and this factor is important in calculation.
How Do You Use the Tool?
Using the compensation calculation tool is quite simple. Here is the step-by-step guide:
Step 1: Enter your information
Enter employment start and leave dates, termination reason, last gross salary, and other information.
Step 2: Perform calculation
Click the "Calculate" button. Severance pay, notice pay, and leave pay are automatically calculated.
Step 3: See the results
Total compensation, detailed breakdown, and warnings are displayed on the screen.
Input descriptions:
Employment Start Date:
The date you started work. Important for working period calculation.
Termination Date:
The date you left the job. Important for working period calculation.
Termination Reason:
The reason for termination of the employment contract. Affects the right to compensation.
Last Gross Salary:
Your last monthly gross salary. Basic value for compensation calculation.
Unused Leave Days:
Unused annual leave days. Required for leave pay calculation.
Interpreting results:
Calculated compensation amounts are calculated according to the Turkish Labor Law. However, these calculations are for estimation purposes and the exact amount may vary according to legal regulations and special cases. Legal consultancy is recommended.
Severance Pay
Severance pay is a compensation paid to employees under certain conditions:
Calculation:
30-day gross salary for each full year
Partial Years:
Proportional calculation is made for partial years
Ceiling:
Annual severance pay ceiling is applied (usually minimum wage × 12)
Duration:
A minimum of 1 year of working period is required
Formula:
(Number of full years × 30 + Partial year ratio) × Daily gross salary
Severance Pay Eligibility Conditions
The right to severance pay exists in these cases:
Employer termination (including unfair termination)
Termination for justified reasons (by the employee)
Leaving due to retirement
Leaving due to military service
Resignation of female employees due to marriage
The right to severance pay does NOT exist in these cases:
Employee resignation (general rule)
Termination for justified reasons (by the employer)
Working period less than 1 year
Notice Pay
Notice pay is the compensation paid if the notice period provided for in the event of termination is not used:
Notice Period:
Determined according to working period
Less than 6 months: 2 weeks (14 days)
6 months - 1.5 years: 4 weeks (28 days)
More than 3 years: 8 weeks (56 days)
Calculation:
Notice period × Daily gross salary
Condition:
The notice period must not have been used
Leave Pay
Leave pay is the fee paid for unused annual leave days:
Calculation:
Daily gross salary × Unused leave days
Daily Gross Salary:
Monthly gross salary / 30
Condition:
There must be unused leave days
Examples
Example 1: Severance pay calculation
Working period: 5 years 3 months
Last gross salary: 25,000 TL
Termination reason: Employer termination
Daily salary: 25,000 / 30 = 833.33 TL
Full year: 5 × 30 × 833.33 = 125,000 TL
Partial year: (3/12) × 30 × 833.33 = 6,250 TL
Total: 131,250 TL (under ceiling)
Description: Severance pay has been calculated for a working period of 5 years 3 months.
Example 2: Notice pay calculation
Working period: 4 years
Notice period: 8 weeks (56 days)
Was notice period used: No
Daily salary: 833.33 TL
Notice pay: 56 × 833.33 = 46,666.48 TL
Description: Notice pay is paid since the notice period was not used.
Example 3: Leave pay calculation
Last gross salary: 20,000 TL
Unused leave days: 10 days
Daily salary: 20,000 / 30 = 666.67 TL
Leave pay: 10 × 666.67 = 6,666.70 TL
Description: Leave pay has been calculated for unused annual leave days.
Example 4: Employee resignation case
Working period: 3 years
Termination reason: Employee resignation
Last gross salary: 30,000 TL
Severance pay: 0 TL (not paid in case of resignation)
Description: There is no right to severance pay in case of employee resignation.
Example 5: Total compensation calculation
Severance pay: 131,250 TL
Notice pay: 46,666.48 TL
Leave pay: 6,666.70 TL
Total: 184,583.18 TL
Description: The sum of all compensations has been calculated.
Frequently Asked Questions
How is severance pay calculated?
Severance pay is calculated as 30-day gross salary for each full year. Proportional calculation is made for partial years. Formula: (Number of full years × 30 + Partial year ratio) × Daily gross salary. Annual ceiling is applied.
How much is notice pay?
Notice pay is calculated as notice period determined according to working period × daily gross salary. Less than 6 months: 2 weeks, 6 months-1.5 years: 4 weeks, 1.5-3 years: 6 weeks, more than 3 years: 8 weeks. It is not paid if the notice period was used.
What are the severance pay eligibility conditions?
A minimum of 1 year of working period is required. Severance pay is NOT paid in case of employee resignation. Right to severance pay exists for employer termination, justified termination, and retirement.
How is leave pay calculated?
Leave pay is calculated as unused annual leave days × daily gross salary. Daily gross salary = Monthly gross salary / 30.
Are compensations subject to tax?
Yes, compensations are subject to tax. Withholding and other tax deductions are applied. Accounting consultancy is required for the exact net amount.
What is the severance pay ceiling?
Annual severance pay ceiling is applied. Usually in the amount of minimum wage × 12 (annual). Around 204,000 TL/year for 2024. Severance pay above this amount is limited by the ceiling.
Is the compensation calculation tool free?
Yes, this tool is completely free. It requires no registration, contains no ads, and offers unlimited usage. All calculations take place in your browser.
When are compensations paid?
Compensations are paid when the employment contract is terminated. Usually during leaving processes or in the period after the termination of the employment contract. Payment period varies according to the agreement between the employer and the employee.
Important Notes and Limitations
What the tool can do:
Calculate severance pay (according to Turkish Labor Law)
Calculate notice pay
Calculate leave pay
Calculate total compensation
Take annual ceiling application into account
Perform instant calculation, giving fast results
What the tool cannot do:
It cannot provide legal consultancy
It cannot perform accounting calculations (tax deductions etc.)
It cannot take special cases into account (union, collective labor agreement etc.)
It cannot guarantee the exact amount (for estimation purposes only)
Warnings:
This calculation is for estimation purposes only
The exact amount may vary according to legal regulations and special cases
Compensations are subject to tax, accounting consultancy is required for the exact net amount
Legal consultancy should be obtained
Reason for termination affects compensation rights
Notice pay is not paid if the notice period was used
Severance pay ceiling is updated annually
This tool is for educational purposes; consult an attorney for legal processes
Performance notes:
The tool runs in your browser, and all calculations occur locally. Your data is not sent over the internet, so your privacy is protected. Calculations are performed instantly with no delay.
Frequently Asked Questions
Severance pay is calculated as a 30-day gross salary for each full year. Proportional calculation is made for partial years. Formula: (Number of full years × 30 + Partial year ratio) × Daily gross salary. Annual ceiling is applied.
Notice pay is calculated as the notice period determined according to the working time × daily gross salary. Less than 6 months: 2 weeks, 6 months-1.5 years: 4 weeks, 1.5-3 years: 6 weeks, more than 3 years: 8 weeks. It is not paid if the notice period has been used.
A minimum of 1 year of working period is required. Severance pay is not paid in case of employee resignation. There is a right to severance pay in case of employer termination, termination for justified reasons, and retirement.
Leave pay is calculated as unused annual leave days × daily gross salary. Daily gross salary = Monthly gross salary / 30.
Yes, compensations are subject to tax. Withholding and other tax deductions are applied. Accounting consultancy is required for the exact net amount.
An annual severance pay ceiling is applied. It is usually in the amount of minimum wage × 12 (annual). Approximately 204,000 TL/year for 2024. Severance pay above this amount is limited by the ceiling.
Yes, this tool is completely free. It requires no registration, contains no ads, and offers unlimited usage. All calculations occur in your browser.
Compensations are paid in case of termination of the employment contract. Usually paid during separation procedures or in the period after the termination of the employment contract. Payment period may vary according to the agreement between employer and employee.