in

# TFR 2024 Revaluation: How to Calculate and Consult the Updated Tables

Understanding the mechanism for calculating the revaluation of severance pay and knowing the reference tables for 2024 is essential for all workers. Every month, the percentages useful for the revaluation of severance pay (severance pay) are announced through a calculation that is based on the ‘revaluation coefficient’, consisting of a fixed rate and a
variable rate.

## How do you reevaluate severance pay every year

The severance pay, governed by article 2120 of the Civil Code, consists of the sum of annual provisions of a share of salary, periodically revalued and then paid at the end of the employment relationship.

The calculation of severance pay involves the sum, for each year of service, of a share equal to the annual salary divided by 13.5. This share is reduced proportionally for fractions of a year, counting fractions of a month equal to or greater than 15 days as a whole month
.

## How is TFR revaluation calculated

The revaluation of severance pay takes place through the application of a rate to the accrued annual fee, consisting of:

• a fixed percentage of 1.5%
• a variable percentage equal to 75% of the increase in the consumer price index for families of workers and employees, ascertained by ISTAT, compared to the month of December of the previous year

## TFR 2024 Revaluation Coefficient

The TFR revaluation coefficient announced in July, and relating to June 2024, is 1.128469%. The severance pay set aside as of December 31 of each year must be revalued on the basis of this coefficient. The revaluation takes place at the end of each year or at the time of termination of the employment relationship
.

## Example of TFR calculation

Let’s assume that a worker received an annual wage of 24,300 euros, that the employment contract lasted exactly one year and that the increase in the ISTAT consumer price index was 1%.

The severance pay will be given by:

• Annual fee: 24,300:13.5 = 1800€
• Revaluation: 1800 x 2.25% [1.5% + 0.75% (1% x 75%)] = 40.50€
• Total severance pay provision: 1800 + 40.50 = 1840.50€

From the total annual provision, the INPS contribution (equal to 0.50%) must be subtracted. So: 1840.50 — 0.50% (9.2025
) = 1,831.2975€

From the gross amount of 1,831,2975€ it will be necessary to subtract the tax to identify the net amount.

## Tables 2024 TFR revaluation

Here are the reference tables for calculating the 2024 severance pay revaluation:

Mese Revaluation coefficient Istat Index Annual fixed rate 1.5% Relationships terminated during the period
January 2024 0.377313 119.3 equal to 0.125 Jan 15 — Feb 14
February 2024 0.502313 119.3 equal to 0.250 Feb 15 — Mar 14
March 2024 0.690391 119.3 equal to 0.375 15 Mar — 14 Apr
April 2024 0.752313 119.3 equal to 0.500 15 April — 14 May
May 2024 1.003469 119.5 equal to 0.625 May 15 — Jun 14
June 2024 1.128469 119.5 equal to 0.750 Jun 15 — Jul 14

We will continue to monitor the price trend and update you on the changes in the severance pay coefficients that will occur in the coming months, reporting the related tables.

## Regulatory references

• Civil Code art. 2120 — Discipline of severance treatment
• Istat consumer price report July 2024, valid in the month of June 2024
• Recall that severance pay is paid in all cases of termination of employment, whatever the reason (individual and collective dismissal, voluntary resignation, reaching retirement age). It is essential to stay updated on legislative news and on adjustments to the revaluation coefficients to ensure proper management of
severance pay.