Italy's 2026 pension reform adds automatic enrollment and portability

From 1 July 2026 Italy’s budget law introduces new rules for supplementary pension funds and the handling of the severance pay (TFR). New private‑sector hires are automatically enrolled in a collective pension scheme unless they opt out within 60 days; silence‑assent directs the TFR to the fund. Employers must provide detailed information at onboarding and the contribution – both employee and employer – is directed to the chosen fund.

Tax treatment changes: TFR left in the company is taxed at 23‑43 %, while amounts transferred to a pension fund are taxed at 9‑15 % depending on years of affiliation. From 31 October 2026 full portability of employer contributions will be possible, allowing transfers to any open pension fund after at least two years in the original fund. The deductible limit for personal income‑tax (IRPEF) contributions to pension funds rises to €5,300 per year. At retirement, payout options are broadened beyond the previous three schemes, offering more flexible mixes of capital and annuity.

These measures constitute the most significant overhaul of Italy’s complementary pension system since the 2005 reform.