What is TFR?
TFR is an employment-related fund governed, in general terms, by article 2120 of the Italian Civil Code. It is not a fixed bonus that is identical for everyone: it builds over time from eligible remuneration and can be affected by pay changes, advances and supplementary pension arrangements.
The basic calculation
For an initial orientation, the annual theoretical accrual is often represented as eligible annual remuneration divided by 13.5. This makes the logic easier to understand, but it does not automatically reconstruct every payslip item. Our calculator shows the formula alongside its assumptions.
- theoretical annual accrual = eligible remuneration ÷ 13.5
- the existing fund may be revalued
- the displayed result is gross and indicative
Revaluation and gross versus net
An existing TFR fund is not simply the sum of annual accruals: revaluation follows legal criteria, while the payment can be subject to specific taxation. Applying one universal percentage to turn gross TFR into net TFR would therefore be misleading.
How to check an estimate
Compare the estimate with the TFR line on your payslip, check the period covered and consider any advances. If you need to challenge a figure or make an important decision, ask the employer for an itemised statement or consult a qualified professional.
Frequently asked questions
Is TFR always paid when employment ends?
Ordinary settlement is linked to the end of employment, but Italian rules also provide for certain advances and supplementary pension arrangements.
Can I calculate net TFR online?
You can get an orientation figure, but net TFR depends on tax treatment and income history that a generic formula cannot reliably know.