Starting a new job is already a moment filled with novelty and responsibility. From 1 July 2026, however, those entering their first job in the private sector will also need to contend with a significant reform concerning the management of the Trattamento di Fine Rapporto (TFR) — the statutory severance pay entitlement. The new rules introduce an automatic mechanism that transforms silence into a choice: failing to act will no longer mean deferring a decision, but rather allowing that decision to be made by others. Understanding the rules from the very first day of employment is therefore essential to safeguarding one's financial future.
What Changes from 1 July 2026
Until now, many employees have approached the question of TFR allocation with a certain degree of nonchalance, often postponing the decision indefinitely. The incoming reform eliminates this possibility for newly hired private-sector employees entering the workforce for the first time. From 1 July 2026, anyone signing their first private-sector employment contract will have exactly 60 days from the date of hiring to notify their employer of how they intend to allocate their accruing TFR.
Should this deadline pass without any communication, the so-called tacit consent mechanism (meccanismo del silenzio-assenso) will take effect: the TFR will be automatically transferred to the supplementary pension fund (fondo pensione complementare) designated by the collective bargaining agreement (contratto collettivo) applied by the employer. In other words, failing to choose is equivalent to automatically enrolling in supplementary pension provision.
Who Is Subject to the New Rules
It is important to clarify the scope of the reform from the outset, in order to avoid any misunderstanding:
- Those affected are private-sector employees entering the labour market for the first time on or after 1 July 2026, regardless of the size of the hiring company.
- Those excluded are employees already engaged under an existing contract, those who have previously made a choice regarding TFR allocation, and, as a general rule, all public-sector employees.
One aspect that is frequently overlooked concerns small businesses: the new rules apply in this context as well, provided that the collective bargaining agreement applied by the employer designates a reference pension fund. For this reason, at the time of hiring, it is advisable to immediately ascertain which collective bargaining agreement governs the employment relationship and which pension fund, if any, is thereby indicated.
The Countdown: The 60 Days That Really Matter
The cornerstone of the reform is the 60-day deadline from the date of hiring — a timeframe that may appear generous but tends to pass quickly, particularly for those focused on settling into a new working environment. Within this period, the employee has two main options: