Companies have until November 15 to deposit compensation for time of service (CTS) to workers on the payroll. This work benefit acts as unemployment insurance. However, given the need for resources to face the rise in prices, a law was issued in May 2022 so that it can be freely withdrawn.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; That is, there are less than two months left to access this benefit. Once the period has passed, it will have a lock again as long as the employment relationship exists.
In this way, when the period expires, workers will only be able to withdraw from their CTS the surplus of four salaries.
They seek to extend the deadline
Because the deadline for workers to withdraw their funds from the CTS is about to expire, from Congress of the Republic, two bills have been presented that seek to extend this benefit for longer.
Thus, through a proposal presented by legislator Luis Aragón Carreño (Popular Action), it is proposed that the CTS can withdraw freely until December 31, 2025. While the initiative sent by the acciopopulist congressman Jorge Luis Flores Ancachi proposes that this facility last until 2026.
Both parliamentarians argue that the objective of each bill is to provide economic liquidity to citizens in order to satisfy the basic economic needs of families.
However, both the Ministry of Labor and Employment Promotion (MTPE) and the Superintendence of Banking, Insurance and AFP (SBS) have been against both initiatives.
According to the MTPE, it no longer makes sense to continue extending the measure because the release of the funds was exceptional.
“The fact of issuing consecutive regulations, further extending the period of availability of the total CTS, without substantiating the serious situation that warrants the approval of an exceptional measure, as proposed by the bill under consideration, would distort the social function that this benefit hastransforming the exception (the free and total availability of the benefit) into the rule,” the Executive argues.
Meanwhile, the SBS alleges that this proposal could affect the liquidity of some companies of the financial system individually, which have CTS deposits in a significant proportion of their liquid assets.
The key
Scope. More than four million people will receive their CTS payment this month. Companies are expected to disburse around S/2.5 billion, according to Pacífico Business School professor Jorge Carrillo Acosta.
Source: Larepublica
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