The bench We can Peru joined the populist proposals that propose the free availability of Compensation for Time of Service (CTS). The initiative states that this access can be made until December 31, 2025.
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“The Peruvian economy constantly faces fluctuations derived from internal and external factors, including health crises, climate emergencies, global economic recessions, and social phenomena. These situations directly affect Peruvian workers and, therefore, family economies, reducing their capacity purchasing power and savings, so a simple and agile tool is required to solve this problem,” the document reads.
Although the CTS It is a benefit that only people who are working formally have. The explanatory statement refers to the fact that access to this benefit “is an economic necessity to cover basic costs.”
In addition, it states that the measure will help cover immediate needs such as education, health, food and debt payment, but does not mention the needs that would be generated in the event of a job cessation.
Recently, the Minister of Economy and Finance, José Arista, also spoke out against the proposals and assured that it is “a bad decision” to approve another withdrawal of this benefit that functions as unemployment insurance.
ORIGINAL NOTE
In it Congress of the Republic There are three bills from left-wing legislators that aim for new access to 100% of the Compensation for Time of Service (CTS). As recalled, the free availability of this benefit expired on December 31, 2024, therefore, currently the rule establishes that up to four remunerations are intangible.
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One of the proposals of the Popular Democratic Bloc authorizes access until December 31, 2025, and justifies this proposal by pointing out that what is sought is to cover the needs due to the economic crisis.
Likewise, he states that with more resources, thanks to the partial or total withdrawal of the CTS, Families will buy, which would translate into an increase in VAT collection, benefiting the State coffers.
The other two initiatives, one from the Magisterial Block of National Concertation, and the other from legislator Margot Palacios, propose that free availability be until December 31, 2026. Both refer that the initiative is to reactivate the economy.
UNEMPLOYMENT INSURANCE
According to labor activists, the CTSworks as unemployment insurance in the country and therefore, is help for people who lose their jobs. The amount deposited for this benefit is equivalent to a monthly remuneration, and 50% is deposited in November and the other half in May.
Recently, the Minister of Labor and Employment Promotion, Daniel Maurate, spoke about the proposals and noted that “in general, as a principle, in the sector we are very clear that everything that means provision for pensions, health and having resources when loses his job, he must keep it.
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