Argentina introduces new mandatory employer contributions to Labor Assistance Fund

Argentina is introducing the Labor Assistance Fund (Fondo de Asistencia Laboral or FAL), a new mechanism designed to help employers pre-fund severance pay, rather than relying solely on direct payment when an employment relationship ends. Employers will be required to make new mandatory contributions of 1% or 2.5% based on employer size. The regime is scheduled to take effect on 1 November 2026.