Six recommendations to keep in mind about paying the CTS

The Compensation for Time of Service (CTS) It is a labor benefit that the employer gives to the worker who is on the payroll. It is intended to protect you in case you lose your job. This benefit is deposited in May and November of each year, so the next CTS payment must be paid in a fortnight of this month.

The use of CTS money raises many doubts among workers. Also, it should be noted that this money is not intangible. According to specialist Jorge Carrillo, professor at the Pacífico Business School, he can be seized until 50% of the amount of the CTS, but only in case of debts for maintenance judgment. However, he warned that this proceeds only when the worker stops working in the company.

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So that you can collect your CTS without doubts, here are five other recommendations:

You will not lose the CTS money

If the worker stops working in the company, either due to dismissal or resignation, and does not request the CTS, the financial institution opens a new “traditional” savings account and transfers the CTS funds, with a rate that is less than that of the CTS account.

It should be noted that some entities continue to maintain the CTS account with preferential rates for several months until they detect that the employee is no longer working. After this they make the change to the traditional savings account.

Open CTS account

The regulation does not specify who should open the CTS account, but the specialist recommends that the collaborator open it, choosing the financial conditions that he prefers (financial institution, interest rate, currency, benefits).

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This special savings account is opened indicating the company’s RUC and then the account number is communicated to the employer.

However, if the worker has not indicated his CTS number to the employer and he must make the payment (be it May or November), it is the same employer that opens the account in the name of the natural person at the financial institution of his choice. .

Change the CTS from a bank to a teller

Although the change of financial entity can be made at any time. The company usually asks the worker to fill out a special form. If the change is requested on a date close to the deposit, it should be taken into consideration that the companies process the change after the payment of the CTS.

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Higher fund, better rates

A person who has a high accumulated amount of CTS could get a better interest rate. You can get special rates when the amount is greater than S / 100,000. If you have the salary account + the CTS account with the same financial institution, you can obtain better rates.

Custom rates

The bank can offer better rates when the client has high amounts or has several financial products with the same institution (salary account, credit card, mortgage loans, insurance, etc.).