Italy mandates automatic pension fund enrollment for private‑sector new hires from July 2026

A change introduced by Italy’s 2026 Budget law requires that every employee hired for the first time in the private sector after 1 July 2026 be automatically enrolled in a complementary pension fund. If the worker does not actively choose a different option, the employee’s severance pay (TFR) will be transferred to the pension fund by default.

The rule also activates the employer’s mandatory additional contribution – often called a “bonus” – for collective (closed) pension funds defined by collective agreements. The contribution amount is set by the relevant sectoral contract. Workers must exercise the right to opt out within the deadlines prescribed by the law. The reform aims to increase retirement savings and is overseen by the pension‑fund watchdog Covip.