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Severance Indemnity (TFR) for civil servants

Publication: 04/01/2022

The Severance Indemnity (TFR) for civil servants is a sum of money paid to a worker when the employment relationship ends.

The amount is determined by the allocation, for each year of service or fraction of a year, of a portion equal to 6.91% of the annual remuneration and the relevant revaluations. In the case of part of a year, the fee is reduced proportionately and the part of a month equal to or greater than 15 days is calculated as a whole month.

From 1 May 2014 the gross annual remuneration considered as the basis of the calculation cannot exceed the threshold of €240 thousand.

 

The following dependent workers are entitled to TFR severance indemnity:

  • dependent workers with a permanent contract after 31 December, 2000, except for so-called "non-contractualised" categories;
  • fixed-term contract in progress or subsequent to 30 May, 2000 and with a minimum duration of 15 consecutive days in the month;
  • permanent contract by 31 December, 2000 and which adheres to a supplementary pension fund (the transition to the TFR is automatic).

If the fixed-term employment relationship starts from a date prior to 2 June, 1999 until 30 May, 2000 (date of entry into force of the decree of the President of the Council of Ministers of 20 December, 1999), registration is in any case carried out for compensation paid for Leaving indemnity for civil servants (TFS), which includes severance indemnity and service bonus, since it is equal to or greater than the continuous year. The value of the compensation for leaving indemnity for civil servants (TFS) accrued up to that point constitutes the amount in addition to the severance indemnity (TFR) accrued in the period between 31 May 2000 and the end of the employment relationship.

For dependent workers who end service and have accrued pension requirements as of 1 January 2014, payment of the TFR is paid as follows (Article 1, paragraph 484, Law No. 147 of 27 December, 2013):

  • in a lump sum, if the total gross amount is equal to €50,000 or less;
  • in two annual instalments, if the total gross amount is more than € 50,000 and less than € 100,000 (the first instalment is of €50,000 and the second is equal to the residual amount);
  • in three annual instalments, if the total gross amount exceeds € 100,000. In this case the first and second instalments amount to €50,000 and the third is equal to the residual amount. The second and third sums will be paid respectively after 12 and 24 months from the commencement of the right to payment of the first.

The right to the TFR prescribes both for beneficiaries and for their survivors after five years from the moment in which it arose. The prescription can be interrupted with an act interrupting period of prescription.

The TFR is paid automatically, therefore the worker does not have to make any claim to obtain the benefit. The TFR1 form is filled out by the institution or administration to which the beneficiary belongs.

The sum due can be received by crediting the bank / postal current account or other electronic payment method.

To learn more about the terms of payment, please visit the page “Terms of payment for compensation paid for Leaving indemnity for civil servants (TFS) and Severance Indemnity”.

The following is deemed as useful documentation:

  • Form TFR1 - Administration
  • Form TFR2 - Re-settlement
  • INDAP Circular No. 30 of 1 August 2002
  • INPS Circular of 17 September 2015 No. 154

The ordinary time limit for issuing measures is set by Law No. 241/1990 at 30 days. In some cases the law may set different deadlines.

The table shows the deadlines exceeding 30 days, established by the Institute by means of Regulations.

In addition to the deadlines for issuing the measure, the table also indicates the person responsible for it.