Today, Monday, November 15, is the last day that companies have to deposit the Compensation for length of service (CTS) to its workers. This payment corresponds to the period May-October 2021.
If companies fail to pay this benefit, they face various penalties, as it is considered a serious offense.
According to Víctor Zavala, manager of the Legal Center of the Lima Chamber of Commerce (CCL), the fines of the National Superintendence of Labor Inspection (Sunafil) range from S / 484 to S / 114,928.
The companies are obliged to deliver the settlement sheet to the worker within five days of the deposit, otherwise they will be incurring a minor infraction whose fines range from S / 198 to S / 68,288. The current labor penalty scales were approved by DS 008-2020-TR.
What is the CTS?
Compensation for Time of Service (CTS) is a work benefit granted by the employer to the worker who is on the payroll and is intended to protect him when his employment relationship ends.
This labor benefit is deposited twice a year: in May and November. That means that the next CTS payment must be given until the fortnight of this month. It should be noted that the amount to be deposited varies according to the employment regime of the company, which can be micro, small, medium and large companies.
How is it calculated?
According to the CCL, in the case of medium and large companies, if the worker has worked in the full six-month period – May to October 2021 – his CTS to deposit will be 50% of the October salary plus one sixth of the bonus received in July.
For example, if the October salary was S / 3,000 and the sixth of the July bonus was S / 500, the total is S / 3,500. Therefore, the 50% to be deposited will be S / 1,750.
In the event that the worker has not worked the full semester, for each month worked he will receive 50% one sixth of the salary and bonus. For example, if in the May-October semester you worked two months, the initial amount will be 2/6 of S / 3,500; that is, S / 1,166. The deposit is half of this figure.
In the event that the worker has not worked the full semester, for each month worked he will receive 50% one sixth of the salary and bonus. For example, if in the May-October semester period you worked two months, the initial amount will be 2/6 of S / 3,500; that is, S / 1,166. The deposit is half of this figure.
Which workers receive the CTS?
According to DS 004-97-TR, the November CTS is received by all formal workers of private companies with a minimum working day of four hours a day who have worked in the same company between May and October of this year.
To be entitled to at least part of the CTS, the worker must have at least one month of services.
Workers of the National Micro and Small Business Registry (Remype) also receive CTS, but only access 50% of the benefit.
Likewise, according to Law 31047 and DS 009-2021-TR, domestic workers who work a minimum day of four hours a day have the right to deposit with the CTS.
Workers in the public sector, informal workers, those who issue receipts for fees and those from the agricultural labor regime who have chosen to collect their CTS along with their daily remuneration are excluded from this labor benefit.
Neither will workers who have worked a day less than 4 hours a day receive the CTS; employees of the microenterprise, hired after the company enrolled in Remype; and workers with monthly remuneration greater than 2 UIT (S / 8,800), who have entered into agreements with their employer to receive comprehensive annual remuneration.
Can I withdraw the CTS?
The general rule establishes that only the excess of four salaries can be withdrawn from the CTS account. That is, if your salary is S / 1,000 and you have S / 6,000 in the account, you can only withdraw S / 2,000, since there always have to be four salaries in the account, which in this example are equivalent to S / 4,000.
However, from the health emergency declared by the Government to stop the advance of the COVID-19 pandemic, the withdrawal of 100% of the CTS was enabled until the end of this year.
