Argentina postpones Labor Assistance Fund implementation

The Argentine government has issued Decree 1228/2026, postponing the implementation of the Labor Assistance Fund (FAL) until December 1, 2026. This marks the second delay for the regime, which was originally scheduled to begin on June 1.

In addition to the postponement, the government has doubled the mandatory waiting period, known as the carencia period. Employers must now contribute to the fund for twelve consecutive monthly periods before they can access resources to cover severance payments. Previously, this requirement was set at six months.

The administration cited the need for further technical adjustments to information systems and the development of new operational procedures. The delay follows requests from the financial sector, including investment funds and brokerage firms, to ensure sufficient liquidity and a solid initial asset base for the funds. The regime, established under the Labor Modernization Law, will be supervised by the National Securities Commission (CNV).