Notice Pay in Turkey — Istanbul Notice-Pay Lawyer
Notice pay (ihbar tazminatı) is owed by the terminating party when an indefinite-term employment contract is ended without observing the statutory notice periods of Article 17 of Labor Law No. 4857. It applies to both employees and employers, but in practice it is most often paid by the employer following unfair dismissal. Date of the termination notice and the existence of effective non-employment must be proven precisely.
Statutory Notice Periods (Labor Law Art. 17)
- 0-6 months seniority: 2 weeks
- 6-18 months: 4 weeks
- 18-36 months: 6 weeks
- 36 months and above: 8 weeks
These are minimum periods; they may be increased — not reduced — by contract or collective agreement. The employer may terminate immediately by paying the notice wage in advance (Art. 17/5).
Calculation: Fringe-Loaded Gross Wage
Notice pay equals the fringe-loaded gross wage for the corresponding period, including transport, meal, bonuses and social benefits. Unlike severance, no statutory ceiling applies. For a quick estimate use our Notice Pay Calculator.
Tax: Both Income Tax and Stamp Duty
Unlike severance pay, notice pay is not exempt from income tax; progressive income tax plus 0.759% stamp duty are withheld.
When Notice Pay is NOT Owed
- Termination by the employer with just cause under Art. 25 (absenteeism, breach of loyalty, etc.)
- Expiry of a fixed-term contract on its agreed end date
- Employee resignation for retirement, military service or female employee marriage (severance accrues, notice does not)
Mandatory Mediation, Limitation and Court
Mediation under Law 7036 Art. 3 is a prerequisite. If unresolved, the lawsuit is filed within 2 weeks at the Labor Court. The statute of limitations is 5 years (per Law 7036; previously 10 years under TBK Art. 146).
Key Legal Basis
Labor Law 4857 Arts. 17, 25 · Law 7036 Art. 3 · Income Tax Law Art. 61 · TBK Art. 146 · Settled case law of the 9th and 22nd Civil Chambers