CTS November 2023: what date do you deposit and how to calculate the amount I will receive?

In a few days the deadline for companies to make the second annual payment of the Compensation for Time of Service (CTS) expires. In this way, thousands of private sector workers who are on the payroll will be able to access this extra money, which will help them face situations of dismissal, retirement or resignation within the framework of the upcoming end-of-year holidays.

According to Law No. 31480 enacted in 2022, Peruvians have until December 31 of this year to withdraw 100% of their CTS. However, the Labor Commission seeks to extend this period up to 12 months through an opinion that must be debated and voted on in the Plenary Session of Congress. Next, we will tell you on what date this financial benefit should be deposited, how to calculate the amount that corresponds to you and other details.

CTS 2023: what date in November do you deposit?

The deposit of Compensation for Time of Service (CTS) is made twice a year in a special savings account, called “CTS account”, which is chosen by each worker. In this regard, companies have until November 15 to pay this economic benefit to their workers, through banks, financial institutions, municipal savings banks, rural savings banks and cooperatives.

According to National Superintendence of Labor Supervision (Sunafil), the CTS is paid within the first 15 days in the months of May and November:

• From November 1 to April 30: May deposit.
• From May 1 to October 31: November deposit.

Who receives the CTS and who is exempt?

Formal workers in the private sector who have a minimum working day of 4 hours a day and who have worked for at least 1 month in the previous semester, may receive the CTS deposit in the month of November. In addition, workers in the REMYPE regime will also be able to access 50% of this extra money. In contrast, those who will not receive this payment are the following:

• Workers who work less than four hours a day on average.
• Workers who receive 30% or more of the amount from the rates paid by the public for services.
• Microenterprise workers hired after the company registered with Remype.
• Workers in the agricultural labor regime who have chosen to collect their CTS together with their remuneration (Law No. 30110 and DS No. 005-2021-Midagri).

CTS, November: how to calculate the amount I will receive?

According to the Lima Chamber of Commerce (CCL), the amount of the CTS varies according to the type of company and the working time in the semiannual period. In that sense, if you want to carry out a quick and effective mathematical operation of this economic benefit, use the La República calculator and enter the following data (date of entry into work, gross salary, computable period of work and if you receive the family allowance) :

Let’s take an example. If a worker earns S/1,500 and has worked for six months, the calculation would be as follows:

• Remuneration to be considered: S/1,500
• 1/6 bonus: S/250
• Service time: 6 months.

The CTS to be deposited will be equivalent to the sum of these amounts, which is divided by 2. Then, the worker will receive the CTS payment of S/875.

What is the deadline to withdraw the CTS?

As we have mentioned, the CTS is a work benefit that acts as a savings fund to protect workers in situations where they become unemployed. However, Law No. 30334, approved in 2015, allows the withdrawal of the surplus of 4 gross salaries and from May 2022, Citizens registered on the payroll are authorized to have 100% of this amount until December 31, 2023, thanks to the promulgation of regulation No. 31480.

It is necessary to note that on November 7, the Labor and Social Security Commission approved an opinion to extend the deadline for withdrawal of Compensation for Time of Service until December 2024. However, both the Ministry of Labor and the Superintendency of Banking, Insurance and AFP (SBS) have been against the bills that were presented by parliamentarians Luis Aragón and Jorge Flores.

CTS 2023: how much is the fine for not making the deposit?

According to the Lima Chamber of Commerce, the National Superintendency of Labor Supervision (Sunafil) can apply fines, that They range between S/554 and S/129,294, in the event of non-compliance by companies with the payment of the CTS, which are differentiated for micro, small, medium and large companies.

In the event that they do not deliver the settlement sheet with the calculation of this social benefit within five days of making the deposit, a minor infraction is established and the fine ranges from S/222 to S/76,824. To determine the fine, the number of affected workers is taken into account based on the ITU (S/4,950).

Finally, the worker has the possibility of initiating legal action against his former employer to collect the CTS owed to him. In that sense, he has four years counting from the year after his employment relationship ended.