On Wednesday, May 25, the Executive promulgated the law that authorizes the disposition of 100% of the Compensation for Time of Services (CTS) “in order to cover the economic needs caused by the pandemic”. Until when will workers be able to withdraw their money?
In this note we tell you if the CTS is already available and until when is the deadline to withdraw it.
However, the fundamental purpose of the CTS 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
LOOK: Withdrawal of the CTS 2022: From what date can I request my money?
When could 100% of the CTS funds be withdrawn?
Law No. 31480 indicates that the Executive Branch will dictate the necessary regulatory provisions for the withdrawal of the CTS within a maximum period of 10 calendar days, from the entry into force of the aforementioned rule.
In that line, said term of 10 days 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.
Until when is the term to withdraw the money from the CTS?
The rule specifies that workers included within the scope of the Single Ordered Text of Legislative Decree 650 are authorized only once and until December 31, 2023, to freely dispose of 100% of the CTS deposits made in the entities and that they have accumulated at the date of disposition.
Can the money only be withdrawn once?
Because the rule authorizes withdrawing the funds only once, Jorge Carrillo clarified that this does not mean that it is a single disbursement, but that it is generated by a “unique situation”, as in the case of the COVID-19 pandemic.
