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SALARY, LOANS AND SAVINGS
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Italian TFR severance pay estimate

Italian rules only

Gross accrual and estimated revaluation

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HOW IT WORKS

A result to understand, not just read.

Italian TFR is built from an annual quota broadly equal to eligible pay divided by 13.5. Previous balances are revalued using a fixed component plus 75% of the selected FOI inflation rate.

    FREQUENTLY ASKED QUESTIONS

    Is the result the net amount I would receive?+

    No. It is a gross estimate and does not calculate separate taxation or the final amount payable.

    Does it include TFR paid into a pension fund?+

    Not automatically. Pension-fund transfers, Treasury Fund positions and employer records must be checked in the relevant statements.

    RESULT GUIDE

    How accrued Italian TFR is estimated

    The calculator adds the theoretical annual quota to the revalued previous balance and subtracts any advances entered. It is designed to help read employment documents, not replace them.

    01 · FORMULA

    Annual quota and revaluation

    Annual quota = eligible pay ÷ 13.5; revaluation = 1.5% + 75% × FOI

    Revaluation applies to the previous balance. The current year’s quota is then added and declared advances are deducted.

    02 · WORKED EXAMPLE

    Simplified ten-year example

    • average eligible pay: €40,000
    • 10 complete years
    • assumed average FOI: 2%; no advances
    Annual quota about €2,962.96; estimated gross TFR about €33,967.

    A constant average FOI does not reconstruct the official index for each individual year.

    03 · HOW TO READ IT

    How to interpret the result

    • Compare the theoretical annual quota with Italian annual tax statements and payslips.
    • Revaluation has a larger effect as the balance and length of service increase.
    04 · LIMITS

    What the estimate does not include

    • It does not calculate separate taxation, tax on revaluation or net payment.
    • Employer, pension-fund and official payroll records remain authoritative.