BBVA proposes new management for Labor Assistance Funds in Argentina

BBVA has introduced a new management proposal for Labor Assistance Funds (FAL) targeting companies and small to medium-sized enterprises (SMEs) in Argentina. The initiative aims to integrate FAL management with payroll services to simplify administrative processes and improve fund traceability.

Under the proposal, companies and SMEs that select BBVA to manage their FAL funds between August 1 and December 31, 2026, will benefit from a 0% administration commission throughout 2027. Additionally, those that incorporate new net payrolls during this period will receive a 100% reimbursement of the FAL contributions corresponding to those payrolls during 2027.

FAL funds are designed as a funding mechanism for private sector employers, utilizing individual, non-seizable accounts separate from company assets to provide economic support for future labor obligations. Lautaro Veliz Espeche, head of Asset Management at BBVA Argentina, stated that the proposal focuses on capital preservation, liquidity, diversification, and risk control.