Learn all the details about the next CTS deposit: Six frequently asked questions

Next November 15 is the deadline for employers in the private sector to make the payment of the Compensation for Time of Service (CTS) to its collaborators, as part of the social benefit that seeks to protect the worker from the risks or contingencies that may arise due to the termination of an employment relationship.

“The CTS allows you to have a fund that provides you with coverage in case you go through a period of unemployment due to job separation, which could happen at any time, so we need to be prepared for it. In addition, CTS accounts, depending on the entity where they are deposited, usually have higher interest rates than other savings products.”, affirms the Mg. José Carlos Rivas Rodríguez, Continuing Education teacher at the Carrión Institute.

Taking into account that there is a new policy such as the withdrawal of 100% of the CTS, as well as various labor regimes and the lack of knowledge of this benefit in new collaborators, the Carrión Institute specialist resolves the most frequent doubts about this deposit.

How is the CTS calculated?

It is calculated as follows:

Consider your monthly salary (without discounts) including family allowance and overtime (if you have them), then add 1/6 of what you received as a bonus (divide your last bonus received by six).
The amount obtained, multiply it by the number of months worked in the last period (from May 1 to October 31) and divide it by 12.
You cannot include in the calculation of your salary what is non-remunerated income, such as monthly mobility, for example.

The Compensation for Time of Service is given to the employees so that the time of the stoppage is light.

When are they deposited?

The CTS payment dates are within the first 15 days of May and November according to the following periods:
From November 1 to April 30 – It is paid in May.
From May 1 to October 31 – It is paid in November.

LOOK: How can you take advantage of the payment of your CTS in a responsible way?

Which workers can access this benefit and who cannot?

receive CTS

Formal collaborators who work on the payroll and who have completed at least one month of service with a minimum of four hours a day.
Those of the small company, but at a rate of 15 daily wages per full year of services, with a maximum of 90 daily wages.
Workers of the agrarian regime, the CTS is already included in the daily remuneration at a rate of 9.72% of the basic salary; but they can also choose to be paid semi-annually.
And, in accordance with Law No. 31047 and Supreme Decree 009-2021-TR, domestic workers who work a minimum of four hours a day are entitled to the CTS deposit.

They do not receive CTS

Workers in general who have worked less than four hours a day and have less than one month of service.
Those of the microenterprise, hired after their employer registered in the Registry of Micro and Small Enterprises (Remype).
Public sector workers, informal workers AND those who issue receipts for fees.
How to know if the company made the deposit? You can consult it directly with the Human Resources area of the company or with your bank, either by asking the balance and movements of your CTS account through telephone banking, mobile APP, web page or at the window inside the agency.
Who can withdraw 100% of their accounts? All people who have an available balance in their CTS accounts until December 31, 2023.
When is it advisable to remove the CTS? When an important economic emergency arises and you do not have other means to obtain resources, such as, for example, going through a period of unemployment and not having income to support yourself or your family.

“If you have made the decision to withdraw your CTS, it is recommended that you can cancel or cushion your debts. Also, another ideal option is to invest your money in term accounts, mutual funds and other instruments that offer you a higher return than your CTS account, such as the development of a business or the purchase of real estate. Last but not least, you could invest that money in your professional development”, adds Rivas.