Everything is calculated in your browser: no data is sent anywhere. Indicative result: the applicable collective agreement and your payroll consultant have the final word.
How the calculation works
- 1 Annual accrual = annual pay ÷ 13.5 (Civil Code, art. 2120).
- 2 The 0.50% contribution on pay, which the employer pays to INPS, is deducted from the accrual.
- 3 Every year the fund already accrued is revalued by 1.5% fixed plus 75% of ISTAT inflation.
- 4 The estimate is gross: it ignores the separate taxation and any TFR paid into a pension fund.
Frequently asked questions
When is TFR paid?
When employment ends, through resignation, dismissal or retirement. After at least 8 years of service an employee can ask for an advance of up to 70% for medical costs or buying a first home (Civil Code, art. 2120).
Does TFR always stay with the employer?
No: the employee can pay it into a supplementary pension fund. In companies with 50 or more employees, TFR not paid into a fund goes to the INPS Treasury Fund.
How is TFR taxed?
Separately: an average rate is worked out on its own, not together with the year's other income.
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