According to current regulations, workers have until December 31 of this year to withdraw 100% of their Compensation for Time of Service (CTS); However, in Congress they are seeking to extend the period for 12 months.
Yesterday, the Labor and Social Security Commission approved by majority an opinion contained in bills n° 5009/2022-CR, n° 5185/2022-CR and n° 5311/2022-CR so that this money is temporarily available until December 31, 2024 —it is That is, the validity of Law 31480, which authorizes the release of the CTS, would be extended—in order to help cover their economic needs not only due to the effects of COVID-19, but also due to “the current economic recession.” considering that the GDP It would end 2023 in negative or below 1%.
Therefore, the extension of this measure, implemented after the arrival of the coronavirus three years ago, remains in the hands of Congress.
Within the explanatory statement, the text states that it is necessary to extend the withdrawal of the CTS, since inflation reached its highest level in 26 years; The basic family basket exceeded the threshold of S/1,631; 7 out of 10 Peruvians cannot cover all their expenses and 80% of Peruvians consider that the price increase affected them a lot.
Even as a result of the supplementary credit law recently validated by Congress, where there will be greater expenses for the reactivationconsider that the release of the CTS would also help this process.
Dissenting voices
The proposal has received the support of the Confederation of Workers of Peru (CTP), since the economic decompensation can be alleviated, although for the General Confederation of Workers of Peru (CGTP) contravenes the essence of the CTS and will leave the workforce without funds for future contingencies.
The Ministry of Labor and Employment Promotion (MTPE) and the Superintendency of Banking, Insurance and AFP (SBS) have already expressed their rejection of this measure, alleging that there is no evidence that the CTS is the most suitable for workers to cover their concerns and that a latent emergency – such as the pandemic – no longer predominates for exceptional release.
“Issue consecutive regulations, further extending the period of availability of the CTS, without substantiating the serious situation that it warrants (…), would distort the social function it hastransforming the exception (the free and total availability of the benefit) into the rule,” they explained.
Volunteering would count as experience
The Labor Commission also supported the initiative that labels volunteering as work experience and pre-professional practice.
In detail, article 11 of Law No. 28238 (General Volunteering Law) would be modified so that they are counted as work experience whenever it is carried out in the field related to the technical or university career of the citizen in question.
The document aims to make it easier for young people to enter a employmentsince the main barrier is “lack of experience”: 81% of young Peruvians have problems finding a job, according to a Manpower report.
Source: Larepublica
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