The deadline for companies to deposit compensation for time of service expires on November 15 (CTS) to its workers. Jorge Carrillo Acosta, professor at Pacífico Business School, points out that more than 4 million people will receive this paymentwhich will imply a disbursement of around S/2.5 billion by employers.
Although the CTS serves as financial support in the event of worker separation from work and since 2015, only the surplus of 4 gross salaries was allowed to be withdrawn; After the publication of Law 31480, it was established that 100% of this work benefit can be accessed until December 31 of this yearthe date on which this facility would end and from 2024 it would have restrictions again.
Thus, since the deadline for workers to withdraw their funds from the CTS is about to expire, from the Congress of the Republic, two bills have been presented that seek to extend this benefit for longer. Legislator Luis Aragón Carreño (Popular Action) proposes that this benefit be until December 31, 2025. While the acciopopulist congressman Jorge Luis Flores Ancachi proposes that this facility be extended until 2026.
Given these proposals, the Ministry of Labor and Employment Promotion (MTPE) and the Superintendency of Banking, Insurance and AFP (SBS) have been against both initiatives and maintain that it is not viable to approve them.
The MTPE argues that there is no analysis that shows that the release of the CTS is the most suitable measure so that workers can cover economic needs without affecting the nature of the social benefit. Furthermore, it adds that the 100% availability of this benefit was an exceptional rule, so it would no longer be supported today.
“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 it has. this benefit, transforming the exception (the free and total availability of the benefit) into the rule,” said the Executive.
Meanwhile, the S.B.S. states that extending the 100% withdrawal of the CTS until 2026 “could affect the liquidity of some companies in the financial system individually, which have CTS deposits in a significant proportion of their liquid assets.”
Source: Larepublica
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