Severance Pay / End-of-Service Payment
Plain English
It's a chunk of your salary that your employer sets aside every month and pays out when your job ends, whether you quit, get fired, or retire. Roughly one month's gross pay per year worked, with a small annual revaluation.
Why it matters
It's basically forced savings you'll receive as a lump sum someday. You can also opt to send the contributions to a pension fund instead, which often comes with better tax treatment and employer top-ups.
Real example
"After 4 years at a design studio in Milan, Mei left to join a competitor. About 45 days after her last day, her TFR landed in her account, roughly 4 months of gross pay plus a small revaluation."
Common confusion
If your company has fewer than 50 employees, the employer holds your TFR directly. If it has 50 or more, it sits with the INPS Fondo Tesoreria. Either way the money is yours when you leave.
Official source
INPS