TFR: How Much Severance Pay Is Due for Each Year of Employment (Amount Table)
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Understanding TFR: The Severance Pay Explained
The Treatment of End of Employment (TFR), also known as severance pay, should be recognized as an integral part of employee compensation alongside their salaries.
The main distinction lies in the payment method: while employees receive their salaries monthly, the TFR is set aside by the employer or, upon employee request, transferred to a supplementary pension fund.
It is subsequently paid out in a single installment at the end of the employment relationship (with exceptions for public sector employees).
The TFR amount correlates directly with the monthly salary, accruing a certain percentage as severance pay over time.
It’s crucial to understand how much TFR one can expect for each year of employment, as this forms a financial reserve to rely on after leaving the company where the TFR was accumulated.
How to Calculate TFR
Article 2120 of the Civil Code defines the rules for calculating TFR, specifying that the annual contribution is derived from the gross salary divided by a coefficient of 13.5.
Generally, TFR continues to accrue during various types of leave, including sick leave, holiday pay, and personal time off, among others.
However, it does not accumulate during unpaid strikes or certain educational leaves.
Breakdown of Annual Severance Pay
To further illuminate the TFR accrual process, we can refer to a table detailing the gross amounts based on annual salary.
This includes all essential values, helping individuals understand their earnings over time.
Here’s a concise outline:
| Annual Salary | Monthly Salary | Accrued Severance Pay |
|---|---|---|
| 10,000 | 769.23 | 740.74 |
| 12,000 | 923.08 | 888.89 |
| 14,000 | 1,076.92 | 1,037.04 |
| 16,000 | 1,230.77 | 1,185.19 |
| 18,000 | 1,384.62 | 1,333.33 |
| 20,000 | 1,538.46 | 1,481.48 |
| 22,000 | 1,692.31 | 1,629.63 |
| 24,000 | 1,846.15 | 1,777.78 |
| 26,000 | 2,000.00 | 1,925.93 |
| 28,000 | 2,153.85 | 2,074.07 |
| 30,000 | 2,307.69 | 2,222.22 |
| 32,000 | 2,461.54 | 2,370.37 |
| 34,000 | 2,615.38 | 2,518.52 |
| 36,000 | 2,769.23 | 2,666.67 |
| 38,000 | 2,923.08 | 2,814.81 |
| 40,000 | 3,076.92 | 2,962.96 |
| 42,000 | 3,230.77 | 3,111.11 |
| 44,000 | 3,384.62 | 3,259.26 |
| 46,000 | 3,538.46 | 3,407.41 |
| 48,000 | 3,692.31 | 3,555.56 |
| 50,000 | 3,846.15 | 3,703.70 |
These figures relate to full years worked; if, for instance, an employee worked only four months, their TFR would be calculated proportionally.
For example, a worker with a salary of 28,000 euros who worked for just four months would accrue approximately 690 euros of TFR.
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