Dr. Rocio Salgado – ras@lorentelopez.com
On June 1, 2026, Decree 408/2026 was published in the Official Gazette, through which the Executive Branch issued regulations for Title II of Law 27,802, concerning the Labor Assistance Fund (FAL).
The FAL is a system designed to provide a mandatory contribution to a fund intended for the payment of certain employment severance payments through monthly contributions made by the employer, administered through mutual funds or financial trusts authorized and supervised by the National Securities Commission (CNV), without modifying the current severance pay regime. This fund will be established through an individual account for each employer, which will constitute a separate, independent, inalienable, and unattachable asset pool specifically designated for the payment of employment-related compensation.
Furthermore, the regulations define a registered worker as one whose employment relationship was registered at least twelve (12) months prior to the termination of employment, a requirement necessary for coverage under the Fund to take effect.
What are the main aspects of the regulations?
The regulations apply to employers in the private sector, excluding employment relationships in the public sector, the construction industry, and domestic workers.
With regard to financing, Article 60 of Law 27,802 establishes that contributions to the FAL must be paid monthly along with Form 931, as part of the Unified Social Security Contribution (CUSS) system administered by ARCA. The contribution will be 1% of the wages used as the basis for calculating employer contributions to the SIPA for large companies, and 2.5% for micro, small, and medium-sized enterprises, in accordance with Law 24,467 and its amendments.
As a prerequisite for making the first contribution, the employer must open an individual account with an institution authorized by the CNV, which will assign a unique identifier known as the “FAL ID.” This identifier must be provided to ARCA to ensure that contributions are properly remitted to the Fund.
If the employer fails to provide a valid FAL ID, ARCA will temporarily withhold the amounts due to the Fund. If one (1) month has elapsed since the deadline for compliance and the employer has not rectified the situation, the CNV will automatically assign an authorized investment vehicle, notify ARCA of the corresponding FAL ID, and arrange for the transfer of the withheld funds to the assigned account.
Furthermore, the Decree expressly provides that contributions to the FAL and amounts temporarily withheld by ARCA may not be offset against, applied to, or credited toward other tax, social security, customs, or other obligations owed by the employer, nor may they be automatically offset by the government, thereby ensuring that they are used exclusively to finance the Fund.
With regard to the management of resources, the Decree stipulates that these may only be invested in financial instruments issued and traded in the Argentine Republic, and that the managing entities must implement mechanisms to ensure the identification, traceability, and proper allocation of the funds and returns corresponding to each account.
The regulations also establish a six (6)-month waiting period, calculated from the date the first contribution to the FAL is actually paid. This means that the Fund’s coverage will not take effect until six full and consecutive monthly periods have elapsed; therefore, compensation covered by the Fund may only be paid from the FAL once that period has expired.
Furthermore, the law provides for the possibility of temporarily suspending the payment of contributions when the accumulated balance is sufficient to cover compensation liabilities for the employer’s entire payroll. In such cases, authorization must be requested from the Ministry of Labor, substantiating this circumstance through information provided by ARCA and certification from the administering entity. The suspension will apply to future contributions and will automatically cease upon the expiration of the granted period or when the conditions that justified its granting no longer exist.
The Decree also addresses cases of incomplete registration, stipulating that the Fund’s coverage will be limited exclusively to the data that has actually been registered. Consequently, the employer will remain fully liable for any applicable compensation shortfalls and for any penalties that may result from incorrect employment registration.
It also sets forth the procedure for validating and paying severance pay, establishing the requirements that must be verified in advance to authorize the use of the Fund’s resources. However, it expressly clarifies that the correct determination of labor obligations and the amount of severance pay remains the sole responsibility of the employer, without incurring any liability on the part of the State, ARCA, or the administering entities.
Another important aspect is that the Decree establishes the rules governing the transfer of funds in cases involving the transfer of business operations, the assignment of personnel, or corporate reorganization processes, thereby ensuring the continuity of the FAL and the proper allocation of resources in connection with these types of business transactions.
In terms of taxation, the regime includes benefits such as a deduction for contributions to the FAL against income tax, an exemption from tax on returns earned on investments made with those funds, and an exemption from the Tax on Bank Credits and Debits for accounts used exclusively by FAL investment vehicles.
With regard to oversight of the system, the Decree assigns concurrent oversight functions to the Ministry of Labor, ARCA, and the CNV. It also provides that the Ministry of Labor shall be the competent authority for determining fines for noncompliance related to the Labor Assistance Fund, while ARCA shall be responsible for enforcing and collecting such fines through tax enforcement proceedings.
Finally, the Decree directs the Secretariat of Labor, the Ministry of Economy, ARCA, and the CNV to issue the necessary clarifying and supplementary regulations for the implementation of the system. Precisely because of the need to complete this regulatory framework, it was decided to extend the effective date of the Labor Assistance Fund until November 1, 2026, granting an additional six-month period for the issuance of the operational regulations.
The regulation of the FAL represents a significant step toward the implementation of one of the key provisions introduced by Labor Modernization Law No. 27,802.
At Lorente & López Abogados, we will continue to monitor developments regarding the new regulations and remain available to advise you on their implementation and the impact these changes may have on your organization.
