Severance Pay Calculator (Detailed) – Tutorial
On this page, you can find the logic, usage, and important details of the Severance Pay Calculator (Detailed) calculator.
Notice Pay + Severance Pay — Detailed Guide (For Employees and Students)
This page clarifies two concepts and explains the calculation logic step by step: Notice Pay (İhbar Tazminatı) and Severance Pay (Kıdem Tazminatı). The tool provides an approximate simulation; in real life, the employment contract, termination reason, benefits, cap, gross/net deductions, workplace practices, and legislative updates may affect the result.
1) What Is Notice Pay?
Notice (ihbar) is the legal obligation to give advance notice to the other party before terminating an employment contract. If this period is not observed, the wages corresponding to the unused notice period are paid as notice pay.
1.1 Notice periods (standard table)
- 0 – 6 months of service: 2 weeks
- 6 months – 1.5 years: 4 weeks
- 1.5 years – 3 years: 6 weeks
- 3 years and over: 8 weeks
1.2 How is notice pay calculated?
The core idea: "How much would you have earned if you had worked those days?" Approximate daily gross salary:
Daily gross ≈ Monthly Gross / 30
Notice period in days:
Notice Days = Notice Weeks × 7
Finally:
Notice Pay (gross) ≈ Daily Gross × Notice Days
Note: The "net" amount of notice pay varies depending on income tax, SSI, stamp duty, etc. This tool primarily explains the gross logic and provides the gross amount.
2) What Is Severance Pay?
Severance pay (kıdem tazminatı) is a payment an employee may be entitled to upon leaving employment, based on their length of service, when certain conditions are met.
2.1 The most critical condition: 1 year
The most well-known prerequisite for severance pay in practice is: at least 1 year of continuous employment with the same employer. The termination reason (employer termination, justified termination, retirement, etc.) also matters. This tool does not query the termination reason — it only performs an amount simulation.
2.2 How is severance calculated?
Simple education model:
Severance (gross) ≈ Gross Salary × Total Years
The "gross salary" here may sometimes be the dressed gross: regular payments such as meal allowance, transportation, bonuses, and holiday pay may be added. In this tool, you can add a monthly average benefit to simulate the dressed gross.
2.3 What is the severance cap?
There is a government-set cap (upper limit) on severance pay. If your gross salary is very high, the cap salary may be used instead. We've made the cap field optional here: if you enter it, the salary used for severance won't exceed the cap.
2.4 Stamp duty
A stamp duty (damga vergisi) deduction is generally applied to severance pay. This tool uses an approximate stamp duty rate to give a rough net idea.
3) How Should You Use This Calculator?
- Enter your monthly gross salary.
- Enter your work duration in years/months/days (or use the date-based option).
- If you have regular benefits (meal, bonus, etc.), add their monthly average → simulates the dressed gross.
- Optionally enter the severance cap (if not entered, no cap is applied).
4) How Should You Interpret the Results?
- Notice pay: applies in scenarios such as termination without notice.
- Severance pay: only paid when eligibility conditions are met; at least 1 year + termination reasons are critical.
- Actual net amounts may differ due to deductions, payroll details, and legislation.
This content is for informational purposes; expert advice is recommended for official matters.