Italian severance pay (TFR): yearly accrual and revaluation
Each year the TFR grows by the annual pay divided by 13.5; the fund already set aside, excluding this year's accrual, is revalued at a fixed 1.5% plus 75% of the rise in the ISTAT price index, and the revaluation bears a 17% substitute tax.
2026 rules — verified on September 24, 2026Free, no account
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Sources and assumptions
- Gazzetta Ufficiale — Codice civile art. 2120 — tax year 2026, verified on September 24, 2026
Excerpt from the source : « una quota pari e comunque non superiore all'importo della retribuzione dovuta per l'anno stesso divisa per 13,5. »
- Gazzetta Ufficiale — Codice civile art. 2120 — tax year 2026, verified on September 24, 2026
Excerpt from the source : « con l'applicazione di un tasso costituito dall'1,5 per cento in misura fissa »
- Gazzetta Ufficiale — Codice civile art. 2120 — tax year 2026, verified on September 24, 2026
Excerpt from the source : « e dal 75 per cento dell'aumento dell'indice dei prezzi al consumo per le famiglie di operai ed impiegati, accertato dall'ISTAT, rispetto al mese di dicembre dell'anno precedente. »
- Agenzia delle Entrate — tax year 2026, verified on September 24, 2026
Excerpt from the source : « Sulle rivalutazioni dei fondi per il Trattamento di fine rapporto (TFR) è dovuta un’imposta sostitutiva, a carico del datore di lavoro o ente pensionistico, delle imposte sui redditi nella misura del 17%. »
Calculation assumptions
- Annual revaluation at 31 December. The part-year revaluation on termination of employment (index of the termination month) is not computed here.
- You enter the rise in the ISTAT consumer price index for blue- and white-collar households since the previous December: the calculator neither knows nor estimates it.
- Months of service are entered already rounded: a part-month of 15 days or more counts as a full month.
- TFR kept by the employer. Amounts paid into a supplementary pension scheme are not revalued here and bear no substitute tax. No contribution withheld from the accrual is deducted.
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