Italy's 2026 pension fund reforms expand employer obligations

From 1 January 2026 Italy’s budget law (Law n. 199/2025) changes the rules for paying the severance pay (TFR) into the INPS Treasury Fund. Employers with an average workforce of at least 60 employees in the previous year must start mandatory monthly contributions; the threshold will be reduced to 50 employees in 2028 and to 40 in 2032. The deadline for the first‑semester 2026 contributions is 16 July 2026.

The reform also introduces automatic enrollment of newly hired workers in complementary pension funds, new tax‑deductibility limits for contributions, and gives employees the option to keep their TFR in the company or transfer it to a pension fund. Guidance on calculation, eligible workers and compliance procedures has been issued by INPS.

A practical guide published by Studiamo.it explains how the changes affect the choice between retaining TFR in‑company or moving it to a pension fund, and provides an Excel tool for employees to compare outcomes.