Italy TFR Severance Fund
Estimate the TFR (trattamento di fine rapporto) your employer sets aside each year, with the ISTAT revaluation and the 17% substitute tax.
Italy — art. 2120 of the Civil Code (Law 297/1982), ISTAT revaluation coefficients and the 17% substitute tax, rules in force on 10/24/2026.
Estimate for guidance only: check the official sources or a licensed professional before relying on it.
Frequently asked questions
How much TFR do I accrue each year?
About 6.91% of the annual pay: the pay divided by 13.5 (7.41%) minus the 0.5% contribution to the INPS pension fund. A month counts when you worked at least 15 days in it.
How is the TFR revalued?
Every 31 December the fund accrued up to the previous year grows by 1.5% plus 75% of the ISTAT consumer price change (FOI index) since the previous December. The 17% substitute tax on that revaluation is paid by the employer and deducted from the fund.
Is the TFR taxed when it is paid?
Yes. The amount, net of the revaluation already taxed at 17%, is taxed separately at the average IRPEF rate of the five years before the year of payment, so it does not add to your other income.
Can I get an advance on my TFR?
After 8 years with the same employer you can ask for up to 70% of the fund for medical expenses or to buy a first home for you or your children, once in the employment relationship (art. 2120 of the Civil Code).
See also Severance pay in Italy
How the Italy TFR calculator works
The TFR (trattamento di fine rapporto) is deferred pay that every employer in Italy owes at the end of any employment relationship, whether you resign, are dismissed or retire (art. 2120 of the Civil Code). Each year the employer sets aside a share of your pay and keeps revaluing it. This calculator shows how the fund grows year by year between a start and an end date, with the yearly accrual, the ISTAT revaluation and the substitute tax. It is meant for employees in Italy who want to check their payslips and for HR and payroll staff who need a quick estimate.
The yearly accrual is the annual pay divided by 13.5, minus the 0.5% contribution to the INPS pension fund. A month counts when you worked at least 15 days in it. On every 31 December the fund accrued up to the previous year is revalued with the ISTAT coefficient: 1.5% plus 75% of the change of the FOI consumer price index. For the termination year the coefficient of the termination month is used. Since 2015 the revaluation bears a 17% substitute tax (Law 190/2014), deducted from the fund. The coefficients are the ones published monthly by ISTAT and are updated on the site every month.
Example: start 01/01/2020, end 12/31/2025 and annual pay of €30,000. Each year accrues €30,000 / 13.5 minus €150.00, that is €2,072.22. In 2022 the coefficient was 9.974576%, so the fund of €4,219.41 earned a revaluation of €420.87 before tax. At the end of 2025 the fund reaches €13,346.82. The estimate keeps the pay constant unless you enter a yearly rise, ignores advances (anticipazioni) and transfers to a fondo pensione, and does not compute the tassazione separata due on the payout.