Changes to the rules on contribution of Employee Severance Indemnity (TFR) to the INPS Treasury Fund have been introduced by Italy’s 2026 Budget Law, altering the criteria for corporate access to the fund. From January 1, 2026, the INPS (Italian National Institute of Social Welfare) has put the new rules into effect, which are outlined in INPS circular no. 12, released on February 5, 2026.
Previously, the system took into account only the first year of business operation, but the new regulations propose a progressive, yearly-scale approach based on the average number of employees a company has.
For private employers, the primary change is the introduction of differentiated employment thresholds over a period of time. For the years 2026 and 2027, companies with an annual average of at least 60 employees are obliged to contribute to the fund. In the period 2028-2031, the threshold reverts to 50 employees, while from 2032 onwards, the threshold lowers to 40 employees.
The number of employees is calculated based on the average number of workers in the year prior to the pay period. For the year 2026, this means the average for 2025 would be used. Companies that increase the number of their employees in the years following their launch will be subject to the contributory obligation if they reach the established thresholds.
The INPS has allowed companies until the sixteenth day of the third month after the publication of the circular to meet these new regulations and cover any back payments due. A new code, “CF05”, was introduced for previous contributions.
