New regulations regarding severance pay (TFR) in Italy will come into effect on July 1, 2026, impacting how new employees manage their retirement savings. Under the new rules, newly hired workers will have a two-month window to decide where their TFR funds should be allocated. If no decision is made within this timeframe, the funds will automatically be transferred to a pension fund. This aims to encourage greater participation in supplementary pension schemes. The change seeks to streamline the process and ensure workers actively consider their long-term financial planning. The legislation intends to boost the Italian pension system by channeling more funds into collective schemes. This update primarily affects individuals entering the workforce after the implementation date.