Italian severance pay (TFR) calculator

Each year an employee accrues a share equal to pay divided by 13.5, minus a 0.50% contribution, and the fund already accrued grows by 1.5% plus 75% of ISTAT inflation. Enter the dates and pay: the calculator rebuilds your TFR year by year.

If you still work there, leave today's date.

In euro, for a full year. Recurring pay counts, thirteenth month included; expense refunds do not. The collective agreement may exclude other items.

Advances received

Gross amount and the year you received it. Skip this if you had none.

Latest ISTAT index available: August 2026. Data updated on 10/10/2026.

The result is for guidance only and does not replace a professional's calculation. The calculation runs in your browser: amounts and dates are not sent anywhere.

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How the calculation works

Each year the employer sets aside a share equal to annual pay divided by 13.5 (art. 2120 of the Civil Code). A partial year gets a proportional share, and a month counts if you worked at least 15 days in it. The additional 0.50% contribution set by Law 297/1982 is deducted from the share.

On 31 December the fund accrued up to the previous year is revalued by a fixed 1.5% plus 75% of the increase in the ISTAT FOI index over the previous December. The share of the year is left out. In the year the job ends, the 1.5% is counted only for the months worked and the index is that of the month of termination.

A substitute tax is due on the revaluation and the employer deducts it from the fund: 17% since 2015, 11% from 2001 to 2014. It did not apply to revaluations accrued before 2001.

Share = pay × months ÷ 12 ÷ 13.5 − 0.50% × pay × months ÷ 12

Revaluation % = 1.5 × months ÷ 12 + 0.75 × (FOI of the month ÷ FOI of previous December − 1) × 100

Revaluation = fund at 31 December of the previous year × revaluation %

Fund = previous fund + revaluation − substitute tax + share − advances

What the calculation leaves out

  • The separate taxation due when the TFR is paid out: the net amount you receive will be lower than the gross shown here.
  • Any part of the TFR you chose to pay into a pension fund: the fund's own rules apply to it.
  • Items your collective agreement excludes from pay. For sick leave, maternity leave or wage guarantee periods the law counts full pay: if you need different years, enter them one by one.
  • The exact day of an advance: the calculator deducts it at the end of the year you received it, so that year's revaluation may differ slightly.
  • The month of termination: if the job ends before the 15th, the calculator counts the months up to the previous one and uses its ISTAT index.
  • The base of the 0.50%: on the payslip it applies to pay subject to social security contributions, which may differ slightly from what you enter.

Official sources

Rules checked against the text in force on 11 October 2026.

This is an estimate for information only, not tax or employment advice. The exact amount is the one calculated by the employer or the payroll consultant.

Frequently asked questions

How is the TFR calculated?

Annual pay is divided by 13.5 and 0.50% of pay is deducted: that is the share of the year. Every 31 December the accrued fund is revalued by 1.5% plus 75% of ISTAT inflation, net of the substitute tax. The final TFR is the sum of shares and revaluations, minus advances.

How much TFR accrues in a year on 30,000 euro gross?

30,000 divided by 13.5 is 2,222.22 euro. After deducting 0.50% of 30,000 euro, that is 150 euro, the share set aside is 2,072.22 euro. From the second year the revaluation is added to the fund too.

How does the TFR revaluation work?

On 31 December the previous year's fund grows by a fixed 1.5% plus 75% of the increase in the ISTAT FOI index over the previous December. For 2025 the rate was 2.311148%. The employer withholds the 17% substitute tax on the revaluation.

Is the result the net TFR?

No, it is the gross TFR accrued. When it is paid out, the TFR is taxed separately at a rate based on the average income of the working years, which the Italian Revenue Agency may later recalculate. The calculator does not estimate it.

When can I ask for a TFR advance?

After at least eight years with the same employer, for extraordinary medical expenses or to buy a first home for yourself or your children. The advance can be up to 70% of the accrued TFR, is granted only once and is deducted from the final TFR (art. 2120 of the Civil Code). Collective agreements may set better terms.

Which ISTAT index is used and when is it published?

The consumer price index for blue- and white-collar households (FOI). Since January 2026 it uses base 2025, and to compare it with December 2025 it is multiplied by the 1.214 link coefficient: the calculator does this for you. ISTAT publishes each month's index around the middle of the following month. The latest one available here is August 2026.