Managing Italian severance pay (TFR) as an employer
TFR from the point of view of a small employer: the yearly accrual, equal to qualifying pay divided by 13.5, and the revaluation of the fund on 31 December at a fixed 1.5 % plus 75 % of the rise in the ISTAT index, which the course explains without putting a figure on it. Then the 17 % substitute tax on the revaluation alone, the historical or forecast advance, the balance, tax codes 1712 and 1713, and the advance an employee may request. Two modules with case studies.
Intermediate2 modules43 minFree course
2026 rules — verified on September 24, 2026
Figures are tied to dated, sourced tax constants. A module whose rules have changed is flagged for review, and is unpublished automatically beyond 90 days.
This content is part of the path: Hiring your first employee· Step 3 of 11· Next step: Italian take-home pay — from gross to net salary
By the end of this course, you can…
These outcomes are the modules' own: the promise cannot say anything the course does not teach.
- Explain why severance pay is owed whenever a contract of employment ends
- Work out the yearly accrual by dividing qualifying pay by 13.5, part years included
- Recognise which payments make up qualifying pay and which stay out
- Revalue the fund on 31 December with the fixed part and the part tied to the ISTAT index
- Tell TFR kept by the business apart from portions paid into a pension fund
- Explain what the substitute tax is charged on and who pays it
- Choose between the historical and the forecast method for the advance
- Work out the balance net of the advance already paid
- Meet the two deadlines and the two F24 tax codes
- Assess a request for a TFR advance against the limits in article 2120
The programme, module by module
Each module has its own page. Durations are derived from the actual text, never announced by hand.
- Module 121 minFree — no accountSetting aside the yearly accrual and revaluing the fundWhat you will be able to do
- Explain why severance pay is owed whenever a contract of employment ends
- Work out the yearly accrual by dividing qualifying pay by 13.5, part years included
- Recognise which payments make up qualifying pay and which stay out
- Revalue the fund on 31 December with the fixed part and the part tied to the ISTAT index
- Tell TFR kept by the business apart from portions paid into a pension fund
- Module 222 minFree — no accountThe substitute tax on the revaluation, its payments and TFR advancesWhat you will be able to do
- Explain what the substitute tax is charged on and who pays it
- Choose between the historical and the forecast method for the advance
- Work out the balance net of the advance already paid
- Meet the two deadlines and the two F24 tax codes
- Assess a request for a TFR advance against the limits in article 2120
What you take away
A handout you keep, not just a page you read. The sections are derived from the course itself: what is announced here is exactly what gets generated.
Participant handout (PDF)
PDF
- Learning objectives (2)
- Key figures (4)
- Mistakes to avoid (2)
- Official sources (2)
Exercise workbook (Word)
Word
- Learning objectives (2)
- Key figures (4)
- Mistakes to avoid (2)
- Official sources (2)
Answers live in a separate appendix: the participant handout and the workbook stay distributable before the exercise.
Download the handouts
Where this course leads
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Run the numbers
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Step-by-step guides to the official forms cited in this course.
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The courses that follow on from this one.
Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.