Notice Pay Calculator

During the notice period, the employer must grant the employee job-search leave of at least two hours per day (Article 27); the employee may combine these hours and use them together if they wish. Withholding this leave, or requiring the employee to work through it, entitles the employee to claim pay for that leave in addition to notice pay.

Like severance pay, notice pay claims are subject to a five-year statute of limitations (Additional Article 3), running from the date the employment contract ended.

Unlike severance pay, notice pay is treated as wages and is therefore subject to income tax, in addition to a 0.759% stamp tax. Income tax is calculated on a bracketed basis according to the employee's cumulative wage base for the year; this tool assumes a zero base and gives an indicative figure at the lowest bracket — the actual deduction may be higher depending on the employee's other income during the year.

Notice pay is not a right exclusive to employees; if an employee resigns and leaves abruptly without observing the notice period, the employer may likewise claim notice pay from the employee equivalent to that period. In practice this arises for employees more often, but Article 17 imposes an equal obligation on both parties.

The two are often confused but are distinct: severance pay is owed to an employee with at least one year of service on termination by the employer, or by the employee for certain just-cause grounds, and is subject only to stamp tax. Notice pay requires no seniority threshold, may be owed by either party where the notice period was not observed, and is subject to both income tax and stamp tax. Where the conditions are met, both may be claimed together for the same termination.