Mercado Pago becomes first e-wallet to join Labor Assistance Fund
Mercado Pago is the first virtual wallet in Argentina to join the Labor Assistance Fund, set to launch on December 1, easing employer obligations for severance payments.
By La Nación

The overhaul of labour laws promoted by the Government: what changes in contracts, severance pay and collective agreements, and how Congress, companies and unions debate it.
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Three plans: El Resumen Esencial for free, Premium with the full analysis and Intelligence with data and alerts to decide, in English, Spanish or Portuguese.
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Mercado Pago is the first virtual wallet in Argentina to join the Labor Assistance Fund, set to launch on December 1, easing employer obligations for severance payments.
By La Nación


Between May and August, 82,000 people were hired under Argentina's labor reform aimed at reducing employer contributions, yet private registered employment fell by 37,800 workers. This decline has persisted for 15 consecutive months and reflects a total loss of about 274,000 jobs since November 2023. While the labor regime shows increases in certain sectors, the overall employment decrease remains significant, and the full impact of the reform has yet to be quantified.
By La Nación

Mercado Pago announced that starting in December it will offer a service to manage the Labor Assistance Fund (FAL) to help employers handle severance payments. This initiative will have no cost for joining and will feature a 0% management fee for the first year. The FAL will be mandatory for all companies, with some exceptions, and the accumulated funds can only be used for severance payments and not for other purposes.
By Clarín

The contribution of the Liquidity and Savings Fund (FAL) in Argentina focuses on creating better investment opportunities for small and medium-sized enterprises (SMEs) while enhancing their financial systems. Discussions highlighted the need for close relationships with businesses and the challenges posed by implementing the FAL in an uncertain electoral context. Experts anticipate a complicated 2027 in financial markets, with portfolio shifts toward dollar-denominated assets and evident concerns about market volatility amid potential policy changes.
By Ámbito

BIND Inversiones' Labor Assistance Funds (FAL) introduce digital tools to manage resources allocated for labor indemnities, enhancing companies' ability to track and visualize their investments. The system sets different monthly contributions based on company size, allowing small and medium enterprises to access a digital platform that integrates financial operations and facilitates indemnity management. This new mechanism aims to normalize and optimize capital use in the Argentine capital market.
By El Cronista

The Labor Assistance Fund (FAL) will be implemented starting December 2026, allowing employers’ contributions to be redirected towards labor indemnifications, negatively impacting the National Social Security Administration (ANSES) revenues. According to the Argentine Political Economy Center (CEPA), this could correspond to the loss of around 744,300 minimum pensions annually in its first year. While the FAL is expected to incentivize the generation of formal employment, experts doubt its effectiveness given the current context of declining registered private employment in the country.
By iProfesional

The article discusses the differences between Mutual Funds (FCI) and financial trusts within the context of the Labor Assistance Fund (FAL) in Argentina. Both investment vehicles are designed to be equivalent in key aspects, but they differ in structure and customization. The choice between them will depend on the investment and liquidity needs of each company.
By El Cronista

The Labor Assistance Fund (FAL) will take effect on December 1, 2026, impacting private sector employers who must meet various requirements before that date. Employers will need to open an Employer's Individual Account and submit the corresponding declaration to avoid penalties. The mandatory monthly contribution will be calculated based on the type of business, with a 12-month waiting period from the first contribution. The regulations include penalties for non-compliance and stipulate that the FAL does not replace the employer's indemnity obligation.
By El Cronista

The implementation of the Labor Assistance Fund (FAL) has been postponed to December 1, 2026, extending the grace period from six to twelve months. Ignacio Sagués, COO of Grupo ST, emphasizes that the choice of administrator should go beyond cost comparison, representing an opportunity to redefine companies' financial relationships. It is suggested that the FAL can positively influence long-term financial planning and resource management.
By La Nación

The implementation of the Labor Assistance Fund (FAL) represents a significant shift in liability management and financial planning for Argentine companies. Damián Koltan, director of BIND Inversiones, emphasized that the FAL provides predictability without additional costs, with mandatory monthly contributions for large companies and SMEs. Additionally, the FAL safeguards resources exclusively for severance payments to laid-off employees, and BIND offers digital tools to facilitate its operation.
By El Cronista

The implementation of the Labor Assistance Fund (FAL) introduces a new mechanism for managing indemnification expenses in companies. This fund transforms what would be a future expense into a financial asset, thereby incentivizing investment through tax exemptions. Companies can choose investment portfolios with different terms and adjustment types.
By El Cronista

As of early 2026, 54.5% of workers in Argentina are not contributing to the pension system, marking a growing trend during Javier Milei's administration. According to the Center for Political Economy Argentina, the combination of labor informality and the implementation of the Labor Assistance Fund (FAL) is projected to result in a revenue loss of $7.8 trillion annually, equivalent to over USD 5 billion. These figures highlight significant demographic and financial challenges for the sustainability of the social security system.
By Infobae

The Argentine government has postponed the implementation of the Labor Assistance Fund (FAL) until December 1, 2026, extending the grace period from 6 to 12 months. This means that companies will not be able to access the funds to pay severance until 2028. This decision responds to requests from various industry chambers and aims to ensure the fund's solvency for future financial commitments.
By La Nación