What is the TFR?
The TFR (Trattamento di Fine Rapporto) is a sum of money that an employee receives at the end of their employment, whether the contract ends, they are fired, or they resign.
How is the TFR calculated?
The TFR is calculated based on the employee’s annual salary. Each year, a portion divided by 13,5 of the employee’s “retribuzione utile“ (useful salary) is set aside. The total amount is the sum of these portions for each year of work.
However, there is another important element to consider: the ISTAT Revaluation.
What is it?
In addition to the above calculations, we must also include the revaluation based on the ISTAT index. This is a mechanism through which the National Institute of Statistics (ISTAT) annually adjusts for changes in the cost of living, based on percentage variations in the relevant indices. This revaluation is carried out every year on December 31st.
It consists of two components:
- A fixed component of 1.5%;
- A variable component equal to 75% of the price increase index.
When do I choose what to do with my TFR?
When you start working for a company, you’ll be given a form where you must choose whether you want your TFR:
- To be kept by the company and paid at the end of the contract or
- To be paid into a supplementary pension scheme (complementary social security fund)
If you choose the second option, you’ll also need to indicate which pension fund you want to use.
From the 1st July 2026, you have only 60 days from the day you get hired to choose, if you will not decide within this period, you will be automatically registered to a pension scheme
Can I request my TFR before the end of the contract?
Yes, but it’s quite difficult. There are specific requirements:
- You must have worked for at least 8 years with the same employer.
- You must provide a valid reason for the request, such as:
- Purchasing your first home
- Health-related expenses
- Certain types of unpaid leave
If my request is approved, will I receive the full amount?
No, if you request your TFR in advance, the maximum you can receive is 70% of the amount you’ve accrued.
How can I check how much TFR I have earned?
Each payslip (“busta paga“) shows the monthly accrued TFR amount. The total amount accrued over time can be found in your CUD.
My contract has ended. When should I receive the TFR?
There is no specific legal deadline by which your employer must pay the TFR. However, most employers usually pay it within 1 to 2 months after the end of the contract. Some include it in the final payslip.
My employer says I’m not entitled to the TFR because I resigned. Is that true?
No, that is not true. You are entitled to receive the TFR regardless of how your employment ends, whether you quit, are fired, or the contract expires. It is your legal right.
My employer refuses to pay the TFR. What can I do?
If your employer refuses to pay the TFR, your only real option is to consult a lawyer and consider legal action.
I’m working as a freelancer with a Partita IVA. Am I entitled to the TFR?
No, freelancers with a Partita IVA (VAT number) are not entitled to TFR, since they are not employees under a standard contract.
