Approximately four million formal workers in the private sector will receive during the first weeks of November the second deposit of the year in their compensation account for time of service (CTS).
The CTS is a deposit that the employer makes by legal provision and has the objective of anticipating the risk caused by the termination of the employment relationship and the consequent loss of your income, in a nutshell it is the ‘insurance’ that the employee has when he breaks his relationship with the company in which he has worked.
Which workers can access this benefit?
As a general rule, all workers in the private labor regime who have worked at least four hours a day and have at least one full month of services between the months of May and October can access, according to Mauricio Matos, Associate Partner of the EY Labor Area. Peru. Likewise, they are also included:
- Small business workers, but at a rate of 15 daily wages per full year of services with a maximum of 90 daily wages.
- The workers of the agrarian regime, for whom the CTS is included in the daily remuneration at a rate of 9.72% of the basic remuneration; however, the worker can choose to have the CTS paid differently and semi-annually, as in the common labor regime.
- Domestic workers, who according to Law No. 31047 and Supreme Decree 009-2021-TR, also have access to the payment of the CTS, which must be paid under the same conditions as the common labor regime.
Who is excluded from receiving this benefit?
Those part-time workers who have worked less than four hours a day, microenterprise workers hired after the company’s registration with Remype, as well as those who receive 30% or more of the amount of the fees paid by the for services, and public sector workers subject to special regimes.
When do you deposit the November CTS?
Companies have until November 15, 2022 to make the second CTS deposit in the year to their formal workers in the private sector.
As recalled, the Executive enacted on May 25 the law that authorizes the provision of 100% of the CTS, “in order to cover the economic needs caused by the pandemic.”
It is worth mentioning that this payment to formal workers is made twice a year:
- In the first days of May, at the latest on May 15
- In the first days of November, at the latest November 15.
What is the deadline to withdraw the CTS?
The maximum term to withdraw the CTS is until December 31, 2023. Of course, several requests can be made until that date.
It is worth mentioning that this year the withdrawal of money will be easier than other years, since Peruvians who wish to withdraw 100% or part of their money for Compensation for Time of Service (CTS), will only have to go to the ATM or bank where they have their money and withdraw it.
Another option is to make transfers between accounts or interbank to receive the money.
To find out if you have this benefit, you just have to contact the bank where the company deposits your remuneration and make the query. You can do this through the bank’s website or by phone call.
