How the TFR is calculated for domestic workers
The TFR (trattamento di fine rapporto, severance pay) is due to every domestic worker in Italy at the end of employment, whatever the reason. For each year of work the employer sets aside the annual pay divided by 13.5; for fractions of a year the quota is pro rata to the months, counting as a whole month any month in which the employment lasted at least 15 days. The pay counted includes the base pay, the 13th month and, for live-in workers, the board and lodging allowance; the calculator therefore uses 13 months of the reference monthly pay (for hourly workers: hourly rate × weekly hours × 52 ÷ 12).
Example: €9 per hour for 20 hours a week → €780 a month → €10,140 a year → TFR quota of €751.11 for each full year, €62.59 per month.
Revaluation
Every 31 December the TFR set aside up to the previous year is revalued with a coefficient equal to 1.5% fixed plus 75% of inflation (ISTAT FOI index). The exact coefficient is published by ISTAT every year; the calculator estimates it from the average annual inflation you enter (with 0 only the fixed 1.5% applies; in recent years Italian inflation has ranged between 1% and 8%). Revaluation is taxed at 17%, while the TFR itself is subject to separate taxation: the amount shown is gross.
When and how it is paid
- The TFR is paid with the final payslip, together with the accrued 13th month and the untaken holidays.
- With the worker's agreement the employer may advance the accrued TFR once a year (up to 70%) or pay it every year: in that case each year starts from zero and there is no revaluation.
- If hours or pay change during the employment, the calculation must be done by periods and added up; this tool assumes a constant pay.
The reference contract
The rules applied are those of the Italian national collective agreement for domestic work (CCNL lavoro domestico: housekeepers, carers, babysitters), which covers every regular domestic employment in Italy. Amounts are gross: INPS social contributions (including the worker's share) and taxes are separate. This calculator is meant for a quick estimate; for the official payslip and special cases (vertical part-time, changes of hours during the year, long absences) ask an employers' association, a labour consultant or a payroll service.
Frequently asked questions
How much TFR does a domestic worker accrue in a year?
The annual pay (13 months, board and lodging allowance included for live-in workers) divided by 13.5: about 7.4% of what she earns in a year.
Is the TFR due if the worker resigns?
Yes, the TFR is always due at the end of employment, whether the worker resigns or is dismissed, pro rata to the period worked.
Can I pay the TFR every year instead of at the end?
Yes, with the worker's agreement: the contract allows paying it yearly or advancing up to 70% of it. It must be recorded on the payslip.