When can you get your CTS? After the Congress of the Republic approved the bill, which proposes that private sector workers can have up to 100% of the funds in the Compensation for Time of Service (CTS) account, now it remains to be seen since when measure can be applied.
MORE INFORMATION: How do I verify the correct calculation and disbursement of the CTS?
The plenary session of the Congress approved by 101 votes in favor, one against, 2 abstentions the measure that allows workers to have up to 100% of their Compensation for Time of Service (CTS) account. The project was exempt from the second vote and passes the Executive, which must decide whether to approve a third withdrawal.
Currently, a worker can only withdraw up to 100% of the surplus of 4 gross remunerations.
WHAT IS THE CTS AND WHAT IS IT FOR?
The Compensation for Time of Service (CTS), a social benefit that aims to protect the worker from contingencies that may arise as a result of cessation of work.
WHAT DOES THE PROJECT SAY FOR THE WITHDRAWAL OF UP TO 100% OF THE CTS?
The bill will authorize workers for the only time to have up to 100% of their CTS until December 31, 2023, with the objective of the economic effects of the new coronavirus pandemic, as well as the rise in fuel prices and essential products, as a result of the war between Russia and Croatia.
The project must be sent to the Government to evaluate whether it decides to promulgate it or observe it. If the second case occurs, it must return to Parliament for a new debate.
FROM WHEN CAN 100% OF THE CTS BE WITHDRAWN?
If the autograph of the law is approved, the Executive Power must dictate the necessary regulatory provisions within a maximum period of 10 calendar days, from the entry into force of the law.
The rule establishes that entities must release the funds accumulated in said account and it can be accessed until December 31, 2023 at the latest.
HOW MUCH AND HOW IS THE CTS PAID?
The CTS is equivalent, on average, to an annual remuneration, which must be deposited by the employer in favor of the worker in two parts of 50% each.
- The first deposit must be made until May 15 and, according to the Ministry of Laborcovers work periods from November to April.
- The second disbursement is due on November 15 and runs from May to October.
WHO WILL RECEIVE THE CTS IN MAY 2022?
- Workers in the private activity regime who work a minimum daily shift of 4 hours a day and who accumulate at least one month of work.
- Small business workers will receive only up to 15 daily wages.
HOW MANY WITHDRAWALS FROM THE CTS HAVE ALREADY BEEN APPROVED?
Previously, the provision of the CTS was already allowed twice:
- The first through Emergency Decree 033-2020, which allowed two withdrawals of up to S/ 2,400 each,
- The second through Law No. 31171, in which workers disposed of 100% of their deposits until December 31, 2021.
