TFR (Trattamento di Fine Rapporto): Who Qualifies and What You Get
Learn how TFR works as severance pay for employees in Italy and how to choose where your accumulated funds are held.
TFR is a form of severance pay that accumulates during your period of employment and is paid out when your working relationship ends.
Who it's for
This scheme is available to all employees.
What you get
You receive the money that has been set aside for you throughout your employment. This is often referred to locally as liquidazione.
What it costs you
There is no direct cost to join, but you must decide whether you want your accumulated funds to stay with your employer or be moved into a private pension fund.
The catch to know
If you do not make an active choice regarding where your money is held, your funds will remain with your company (or may be sent to the social security office if the amount is sufficiently large).
How to apply
- Check your employment contract to see how your funds are being handled.
- Decide if you prefer to keep the money with your employer or move it to a pension fund.
- Inform your employer or the relevant fund of your decision.