CTS November 2021: How to calculate how much I should be paid?

The second payment of the Compensation for Time of Services (CTS) is approaching, which during times of pandemic and due to the health emergency has been able to withdraw 100%. The first payment of this benefit was due in May. Find out here the date of the next CTS deposit and how to calculate the amount that corresponds to you according to your labor regime.

What is the CTS and who receives it?

Compensation for Time of Services (CTS) is a benefit that a large number of companies must deposit their workers twice a year on the payroll, in order to provide them with security at the end of the employment relationship. This is provided to workers formal of private companies with a minimum working day of four hours a day.

This benefit is paid semi-annually in May and November of each year. The deposits are equivalent to approximately half salary, as long as you have worked at least six months. Likewise, public sector workers, informal workers and those who issue receipts for fees are also excluded from this labor benefit.

How is the CTS calculated?

According to the Lima Chamber of Commerce (CCL), those who work in a medium or large company they will obtain as CTS 50% of the salary plus one sixth of the bonus received the previous year, provided they have worked during the entire semester.

If the working time has been less than six months, you will receive one sixth of the salary plus the bonus for each month worked. In a mathematical operation it would be as follows [remuneración + asignación familiar + (gratificación * 1/6)]/2. The result of this is what the company will deposit you as CTS.

Those who work in small companies (annual income less than 1,700 UIT), who are not registered in Remype, or who have been hired before registration, will be entitled to the CTS according to the general rule for medium and large companies.

Meanwhile, people hired after the company enrolled in Remype will obtain a CTS of 50% of what is calculated for the general scheme. Regarding the staff of the micro-businesses, they will receive the CTS if their company is not in Remype or if they were hired prior to their registration. If they entered later, they will not be entitled to this benefit.

The second aspect to consider is whether you perceive a fixed or variable remuneration.

Fixed remuneration

Let’s imagine that you salary is S / 6,000, you receive a household allowance of S / 70 and a gratification in the month of May of S / 6,000. In a simple way it would be this way [remuneración + asignación familiar + (gratificación * 1/6)]/2. The result of this is what the company will deposit you as CTS.

Variable remuneration

In the hypothetical case that you remuneration is S / 2,000, a household allowance of S / 70 and a gratification in the month of May of S / 2,000. In addition, the commission average of the respective semester you received is S / 530 and the average compensation of the overtime amounts to S / 30. The formula that we have to apply is the following, [remuneración + asignación familiar + (gratificación * 1/6) + promedio comisiones + promedio horas extra]/2. The result would be the amount of your CTS.

Until when do companies have to deposit the CTS?

The Business They have until next Monday, November 15 to pay the Compensation for Time of Services (CTS), as established in Supreme Decree No. 001-97-TR.

Since when can the CTS withdrawal of November 2021 be carried out?

The goal of the CTS It is to serve as financial support against job separation, so it should only be used in the event of resignation, dismissal or retirement, but currently its disbursement is allowed.

At the end of last March, plenary session of the Congress of the Republic passed a bill that would allow employees to withdraw up to 100% of their funds from CTS, due to the economic difficulties caused by the COVID-19 pandemic. This will be possible only until December 31, 2021.

What happens if the company does not deposit the CTS?

In the event that the employer does not make the payment of the CTS within the corresponding period, it is committing an infraction, which can range from mild to serious. That is why the worker can file a complaint with Sunafil in order for the labor inspection authority to monitor compliance with the obligation.

If within five business days the deposit has not been made to the workers, it means a minor offense, which if warned by labor inspectors could generate a fine of 15.52 UIT, which is equivalent to S / 68,288. If the problem becomes more serious, the fine could be raised to 26.12 UIT, equivalent to S / 114,928.