Italy TFR Calculator: Trattamento di Fine Rapporto Accrued Per Year
Work out the Italian TFR (trattamento di fine rapporto) accrued in one year — the severance/leaving entitlement Italian employers set aside for each employee — calculated as your annual gross salary divided by 13.5.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | TFR accrued in the year |
|---|---|
| €27,000 salary (€2,000/yr) | $2,000.00 |
| €35,000 salary | $2,592.59 |
| €20,000 salary | $1,481.48 |
| €50,000 salary | $3,703.70 |
How This Calculator Works
Enter your annual gross salary and the legal divisor (13.5). The calculator returns the gross TFR set aside for that year. Over your employment these yearly quotas accumulate (and are revalued annually) to form the lump sum paid when the job ends. The TFR is deferred pay accrued throughout employment, not an extra cost added at the end.
The Formula
Cost per Unit
Total Amount is the full cost or price, Quantity is the number of units it covers
Worked Example
On a €27,000 gross annual salary, the TFR accrued in the year is €2,000 (27,000 ÷ 13.5). The TFR (often called liquidazione) is a lump sum every Italian employee receives when their employment ends — for any reason, including resignation. Each year roughly one-thirteenth-and-a-half of gross pay is set aside; the accumulated balance is revalued annually (a fixed 1.5% plus 75% of inflation) and paid out, with favourable separate taxation, when you leave.
Key Insight
The TFR is one of the most distinctive features of Italian employment, and a few points clarify how it builds up. The annual quota is gross salary ÷ 13.5 (about 7.41% of pay); from this a small 0.50% INPS contribution is deducted, so the net annual accrual is marginally lower than the simple division shown here. The accumulated TFR is revalued each year by a fixed 1.5% plus 75% of the ISTAT inflation rate, so it broadly keeps pace with prices. Crucially, the TFR is owed regardless of why the job ends — resignation, dismissal, or retirement all trigger payment — making it deferred salary rather than a severance penalty. Where the money sits depends on a choice: employees can leave the TFR with the employer (in firms with 50+ employees it is transferred to an INPS treasury fund) or direct it into a supplementary pension fund (previdenza complementare), which can offer higher long-run growth and tax advantages but locks the money for retirement. When paid out, the TFR is subject to tassazione separata — a separate, generally favourable tax regime based on your average rate over prior years — rather than being added to that year's income. This calculator shows the gross yearly set-aside; your actual leaving lump sum is the sum of these quotas across all years of service, net of the INPS contribution, plus annual revaluations, and before separate taxation. Verify the divisor and the contribution if you need a precise figure, and remember a destinazione choice (employer vs pension fund) changes how the balance grows.
Frequently Asked Questions
How is the annual TFR calculated?
Divide your annual gross salary by 13.5. On €27,000 that is €2,000 set aside for the year. A small 0.50% INPS contribution is then deducted, so the net accrual is slightly lower, and the accumulated balance is revalued each year.
What is the TFR?
The trattamento di fine rapporto — a lump sum every Italian employee receives when their employment ends, for any reason including resignation. It is deferred pay accrued throughout the job (about one-thirteenth-and-a-half of gross salary each year), revalued annually, not an extra payment the employer adds at the end.
Why divide by 13.5?
Because Italian law sets 13.5 as the divisor for the yearly TFR quota — annual gross salary ÷ 13.5 gives the gross amount accrued in the year (roughly 7.41% of pay). It is a fixed legal figure, not derived from the number of monthly payments.
Is the TFR revalued over time?
Yes. The accumulated TFR is revalued each year by a fixed 1.5% plus 75% of the ISTAT inflation rate, so it broadly keeps pace with prices. This calculator shows the gross quota set aside in a single year, before revaluation of the running balance.
How is the TFR taxed when paid out?
Under tassazione separata — a separate, generally favourable regime based on your average tax rate over prior years — rather than being added to that year's income. If you direct the TFR into a supplementary pension fund instead of leaving it with the employer, different (often more favourable) rules apply.
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Methodology & Review
The yearly TFR quota is the annual gross salary divided by 13.5, the legal divisor set by Italian law. It gives the gross amount set aside in one year and does not apply the small INPS fund contribution (0.50%), the annual revaluation (1.5% plus 75% of inflation), or the separate taxation applied when the TFR is paid out.
Written by Ugo Candido · Last updated May 22, 2026.