Trattamento di Fine Rapporto (TFR): Who Qualifies and What You Get
Learn how the TFR severance payment works, how it is deducted from your salary, and your options for managing the funds.
The Trattamento di Fine Rapporto (TFR) is a severance payment paid to workers when their employment contract ends.
Who it's for
This scheme is for all employees. You become eligible for the payment once your employment contract is terminated.
What you get
You receive a lump sum payment, often referred to as "liquidazione." This is a single amount of money paid to you at the end of your working relationship.
What it costs you
There is no upfront cost to access this benefit, but it is funded through an automatic deduction from your monthly salary. A portion of what you earn each month is set aside for this eventual payment.
The catch to know
You have a choice in how this money is handled. You can choose to keep the funds within your company to be paid out later, or you can choose to move the money into a pension fund.
How to apply
- Continue your employment as usual while deductions are made.
- Contact your employer when your contract ends to confirm the final amount.
- Decide whether you want the funds paid directly or moved to a pension fund.
- Receive your lump sum payment according to the terms of your contract termination.