There are two bills in Congress that propose access to 100% of the compensation for time of service (CTS) until December 31 of this year. One of People’s Force and another of Free Peru. What impact will these legislative proposals have?
First, it must be taken into account that a similar measure was approved last year, which allowed access to the total of the CTS until the last day of 2021. According to the Superintendence of Banking, Insurance and AFP (SBS), for this reason, deposits went from a balance of S/21,243 million in April of that year to S/11,805 million in December.
The Scotiabank Economic Research analyst, Ricardo Avilaindicated that the greatest amount of withdrawal was observed from September to the last month of 2021.
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“Savings and time deposit accounts are growing because there are workers who, when withdrawing money from the CTS and the AFP, deposited it in these types of accounts,” Indian.
Likewise, he considered that he does not believe that the projects will become law “because a recovery of the economy is already observed.”
SOCIAL UNPROTECTION
For his part, labor activist Ricardo Herrera pointed out that it is not being considered that approving these initiatives generates “social vulnerability.”
“The country needs to grow more than 4% to generate employment, if companies do not grow this can cause them to start laying off workers, who, if they spent the CTS, will no longer have resources to address unemployment”said.
In that sense, he called on Congress not to “distort” the meaning of the CTS “which functions as unemployment insurance.”
“Another thing to consider is that there are people who withdraw money without having any need. A measure like this, last year or in 2020, when the pandemic was stronger, could be understood, but not now “commented.
Meanwhile, the Professor of Economics at the Universidad del Pacífico (UP) María Amparo Cruz Saco indicated that actions from last year are being repeated, “which reflects an inability to think of instruments that protect workers.”
For the expert, the third wave of COVID-19 cannot be adduced because it “is already happening.” On the contrary, she considered that it is necessary to think about medium and long-term measures, and not just short-term ones.
“Retirement only benefits a group of workers, a ‘privileged’ group. The CTS has been created to help people who are unemployed; then, with the projects they distort their purpose”he commented, and specified that these proposals that are in Congress would have an end more oriented to “populism” and to the next local and regional elections.
Data
It is currently in force Law 30334, that in its article 5 states that workers can dispose of 100% of the surplus of four gross remunerations deposited in their CTS accounts.
The compensation for time of service is a benefit that workers have and that is deposited twice a year, the first in May and the second part in November.
