Mercado Pago launched MP FAL, its owninvestment fund to manage the Labor Assistance Fund, the new regime that establishes a mechanism for business savings aimed at financing severance payments. This tool adds to the alternatives being prepared by banks and settlement and compensation agents (Alycs) to attract affected employers.
The system will come into effect on December 1, 2026 and will cover about 550,000 private employers with registered workers. Companies will be required to make monthly contributions calculated on the salaries of approximately 6.2 million employees.
Mercado Pago launched MP FAL
What is the Labor Assistance Fund and which companies must contribute
The Labor Assistance Fund (FAL) is a mandatory regime for private employers with registered workers. The construction sector and private households are exempt.
The percentage that each company must contribute depends on its status:
MiPyMEs with valid certification: 2.5% of the remuneration base of the Argentine Integrated Pension System (SIPA).
Qualified non-profit entities: 2.5% of the same base.
Other private employers: 1%.
In general terms, the contribution is offset by a reduction in other employer burdens, so it does not represent an additional cost for companies, according to the scheme provided for the regime.
What is the Employment Assistance Fund and which companies must contribute
How the FAL works and what the money can be used for
The contributions accumulate in an account in the name of each employer and are invested in financial instruments authorized by the National Securities Commission (CNV). The resources have a specific destination: to cover obligations arising from the termination of employment relationships, such as severance payments or voluntary retirements.
The money cannot be used for other purposes or withdrawn freely. The regulations provide exceptions for situations of company closure or disappearance.
How the FAL works and what the money can be used for
Each employer can choose who manages their account among banks, Alycs, and mutual fund management companies. In the case of MP FAL, the manager is Mercado Pago Asset Management S.A. and the custodian is Banco Industrial S.A., both entities authorized by the CNV.
When the first contributions to the Labor Assistance Fund are made
The regime will begin on December 1, 2026. The first contribution will correspond to the salaries accrued during that month and will be paid in January 2027 using form F.931.
To use the accumulated funds, employers must comply with a waiting period of 12 consecutive months, counted from the first effective contribution recorded by the Revenue and Customs Control Agency (ARCA).
When are the first contributions made to the Employment Assistance Fund
Once that period has elapsed, in the event of a labor termination, the money can be transferred directly to the worker's bank account. The operation does not require the funds to pass through the employer's wallet.
The existence of sufficient balance does not change the legal responsibility of the company. If the accumulated money is not enough to cover the severance payment, the employer must pay the difference and still fulfill all their obligations.
The money can be transferred directly to the worker's bank account
How to join the MP FAL of Mercado Pago
According to the company, joining the fund is digital and has no entry cost. The process is carried out from the employer's Mercado Pago account and requires completing a sworn statement to certify that they have registered workers covered by the regime.
The procedure includes these steps:
Joining: the employer logs into the platform and accepts the sworn statement.
Identification: receives a FAL ID, which identifies their account within the system.
Validation: must register that identifier with ARCA using a tax key, in the Simplification Registration service.
Contribution allocation: once validated, ARCA automatically sends the monthly contributions to the chosen fund.
The company indicated that during the first year, the management fee will be 0%. From the second year, the fees provided in the Management Regulation will apply, with a total cap of 1% per year, VAT included. That limit includes the fees of the manager, the custodian, and other participants.
How to join the Mercado Pago MP FAL
What the FAL money is invested in
The resources can be placed in various instruments authorized by the regulations. These include debt securities from the national government, provinces, and the Autonomous City of Buenos Aires, as long as the latter have an AAA rating on a national scale.
Term deposits in financial entities authorized by the Central Bank and negotiable obligations from private issuers with the same credit rating are also allowed. Additionally, the fund must maintain at least 10% of its assets in highly liquid assets.
What is FAL money invested in
In tax matters, Law 27.802 and Decree 408/2026 establish that the returns are exempt from Income Tax for the employer. Furthermore, the contributions made to the fund are deductible from that tax.
How to claim a severance payment through the FAL
When an employment relationship ends, the employer must submit a sworn statement to the administrator. The document must include the worker's details, the reason for the termination, the corresponding settlement, and the CBU where the money will be credited.
The administrator has a maximum period of five business days to transfer the funds directly to the worker's bank account.
How compensation is collected through the FAL
The employer can use the FAL balance to cover the entire severance payment or just a part of it. They can also choose not to use the fund and cover the payment with their own resources, while the accumulated contributions remain available for future terminations.
