Congress seeks to extend the free provision of the CTS until 2025 due to the rising cost of living.
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Companies have until November 15 to deposit compensation for time of service (CTS), which acts as unemployment insurance. However, given the need for resources to face the rise in prices, a law was issued so that it can be freely withdrawn.
The rule establishes that Peruvians will be able to have 100% of the CTS until December 31, 2023. Once the period has passed, it will have a lock again as long as the employment relationship exists.
It should be added that the CTS for November varies according to the type of company and the worker’s period within it: 50% of their October salary plus one sixth of the bonus given in July of this year.
Bill aims to extend the withdrawal of the CTS until 2025
Through PL 609 –2023/CR – sent to the Congressional Economy Commission – it is proposed that the CTS can withdraw freely until December 31, 2025. It also authorizes the release of 4 UITs from the AFPs.
The document, presented by legislator Luis Aragón Carreño (Popular Action), alleges that the withdrawal of the CTS seeks to alleviate the social and economic emergency of the country: inflation of basic necessities, lack of employment and decrease in the purchasing power of families.
The project maintains that the free disposal of the CTS for a few more years—and of the 4 ITUs—does not contravene the Political Constitution, since there are regulatory precedents that allowed these resources to be obtained.
Source: Larepublica
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