Argentina: The Labor Assistance Fund Will Become Effective on November 1, 2026
On June 1, 2026, Decree No. 408/2026 was published in the Official Gazette, regulating Title II of Law No. 27,802 (Labour Modernization Law) and establishing the implementation framework for the Labour Assistance Fund (“FAL”).
The FAL is a mechanism aimed at assisting employers in the fulfillment and payment of certain labour obligations and severance indemnities arising from termination, without modifying or replacing the current severance regime. The system will be funded through mandatory monthly contributions made by private-sector employers and administered through collective investment vehicles authorized and supervised by the National Securities Commission (CNV).
Each employer must open an individual account with an entity authorized by the CNV. The monthly contributions will be paid through ARCA within the Unified Social Security Contribution system (CUSS), and ARCA will act as the agent responsible for transferring the funds to the relevant employer’s account.
The mandatory contribution will be calculated on the remuneration used as the basis for employer contributions to the Argentine Integrated Pension System (SIPA), with applicable rates of 1% for large companies and 2.5% for MSMEs (Law No. 27,802). The regime will only cover duly registered employees with at least twelve months of seniority prior to termination, and a six-month waiting period from the first effective contribution is established, during which the accumulated funds may not be used to pay severance obligations.
In conclusion, as from November 1, 2026, private-sector employers must be prepared to comply with the FAL regime, including the selection of a CNV-authorized entity, the opening of the individual employer account, and the adaptation of payroll systems to incorporate the new monthly contribution.
