The Executive promulgated on Wednesday, May 25, the law that authorizes the provision of 100% of the Compensation for Time of Service (CTS) “in order to cover the economic needs caused by the pandemic”. In this note we tell you who will be able to withdraw the money.
Law No. 31480 indicates that the Executive Branch will dictate the necessary regulations for the disbursement of the CTS within a maximum period of 10 calendar days, that is, it expires on June 5, “so in practice withdrawals could be made from Monday 6 at the latest”, specified Jorge Carrillo, professor at Pacífico Business School.
The measure indicates that, for the only time, 100% of the CTS can be withdrawn until December 2023.
It should be noted that the CTS’s fundamental purpose is to anticipate the risk caused by the termination of the employment relationship and the consequent loss of your income, in a few words, it is the ‘insurance’ that the employee has when he breaks his relationship with the company in the one who has worked
Who will be able to withdraw 100% of the CTS?
All workers, without exception, are authorized to make the disbursement of their entire CTS, but we must bear in mind that only those who are in the formal system can do so; since the other informal employees do not have this benefit.
Among the direct beneficiaries of Law No. 31480, enacted by the government of Pedro Castillo, there are also workers in the private regime who work a minimum of four hours a day and those who work for small companies, as well as domestic workers. and the agrarian regime.
Workers under the CAS regime do not have access to this benefit, nor do those who issue receipts for professional fees.
How many CTS withdrawals have already been approved in a pandemic?
In the state of emergency, 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.