Argentina Ministry of Economy regulates Labor Assistance Fund investments

Argentina’s Ministry of Economy has issued Resolution 1276/2026, regulating how the Labor Assistance Fund (FAL) can invest its resources. The FAL was established under recent labor reforms to provide for future severance payments and will begin operations on November 1st.

The regulation sets specific exposure limits for provincial debt, private negotiable obligations, bank deposits, and dollar-linked assets. However, it does not impose a cap on investments in securities issued by the National Treasury. This allows the fund to potentially invest up to 100% of its value in national government debt.

Contributions to the fund will be made monthly via ARCA. Large companies are required to contribute 1% of their taxable payroll, while micro, small, and medium-sized enterprises (MSMEs) must contribute 2.5%. These percentages may be adjusted by the Executive Branch to 1.5% and 3%, respectively. The fund's assets will be managed through investment funds or financial trusts authorized by the National Securities Commission (CNV) and will be legally protected from seizure.