Severance Pay Calculator

TFR (Trattamento di Fine Rapporto), or Severance Pay, is a sum that the employer sets aside each year and pays to the employee upon termination of the employment relationship.

• Annual quota: equal to the annual salary divided by 13.5.
• Revaluation: the accrued TFR is revalued each year with a fixed rate of 1.5% plus 75% of the ISTAT index.
• Taxation: TFR is subject to separate taxation, with an average rate calculated on the reference income.

Note: this calculator provides an indicative estimate. For an exact calculation, consult your employment consultant or accountant.