Workers in the private sector will receive this month the second deposit of the Compensation for Time of Services (CTS) of 2021. The CTS is a work benefit of prevention against contingencies that is equivalent to approximately half salary.
Glen Arce, an economist at the National University of San Agustín (UNSA), indicated that great caution must be exercised when using these resources. This is due to the fact that in the face of the health emergency caused by COVID-19, the Government decided to withdraw the total amount of the accumulated CTS. Before the pandemic, it was only possible to dispose of the surplus of 4 workers’ salaries.
“If there is a strong debt and you have the facility to pay with the CTS, in good time. The wrong thing would be to allocate it for Christmas expenses. It would be wrong if they do not generate a benefit in the future ”, indicated the specialist.
Arce stressed that the objective of creating this amount was to have future assets when one stops working or retires. He pointed out that in the face of the economic crisis and the unemployment that was caused, many people have had to use this money. “You have to arrange it very cautiously or for absolutely necessary things like survival,” he emphasized.
While due to the political uncertainty that the country is experiencing, the specialist argued that it is better not to remove the CTS. He indicated that the dollar is still around S / 4 when it should be at a maximum of S / 3.6. He added that if you have the possibility of dollarizing your savings, it may be a good option at this time, but that the exchange rate could vary from one moment to another, or go up or down.
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