What are the steps to withdraw my CTS and until when can the benefit be deposited?

Given the proximity of the expiration of the period in which private sector companies must deposit for the second time in the year the Compensation for Time of Service (CTS) to their workers registered on payrolls, there are some doubts regarding the withdrawal of this extra money that acts as financial support during periods of work inactivity.

Let us remember that until December 31 of this year, Law No. 31480 authorizes Peruvians to use 100% of their CTS, and even the Congressional Labor and Social Security Commission seeks to extend this period for up to 12 months. Below, we tell you all the details about the deposit date of this work benefit, how you can withdraw it without problems and what you should do if the company you work for fails to pay the payment that is rightfully yours. Pay attention!

CTS 2023: when do they deposit the extra money?

This Wednesday, November 15, the deadline for more than 2 million workers subject to the private activity labor regime to receive payment of Compensation for Time of Service (CTS) expires. This amount is deposited twice a year in the “CTS account”, which is chosen by each employee, for which there is a series of alternatives between banks, financial institutions, municipal savings banks, rural savings banks and cooperatives.

What aspects should be considered for CTS withdrawal?

The CTS is a labor benefit that companies pay twice a year to workers to protect them in situations of dismissal, resignation or retirement. To understand how to withdraw this extra money, we must take two concepts into account. On the one hand, the available balance, which refers to the amount in our bank account that we can use at any time and the accounting balance, which includes transactions pending approval or registration.

Furthermore, the funds from this social benefit have an intangible nature for the dependent worker with the purpose of mitigating the contingencies that arise from the termination of the employment relationship.

If the CTS balance is found to be accounting it is due to the last deposit made and if it is not available it is due to various reasons. In that sense, if a worker cannot carry out operations in his CTS account, it may be due to his inactivity or that he is trying to manage the withdrawal before 48 business hours since the company he works for paid him this extra money.

Given this, the Lima Chamber of Commerce (CCL) recommends going to the banking entity to send the respective documentation and reactivate it. In the second case, you must wait the established period of time to collect the CTS without problems.

CTS 2023: what are the steps to withdraw the money that corresponds to me?

Private sector workers who have a minimum working day of 4 hours a day and who have worked for at least 1 month in the previous semester, will receive the CTS deposit in November. To withdraw this extra money, it can be done in person or through the virtual means available at the bank, financial institution, municipal fund or wherever this economic benefit is deposited. In that sense, the Lima Chamber of Commerce recommends following these steps to transfer your CTS to your savings account:

• Notify your employer. To do this, send a request to the financial institution where your CTS is deposited. If the procedure is in person, go to the bank and use its ATMs, window or talk to an advisor, carrying your ID and the account card.
• Provide the information requested, such as the account number and bank name.
• Specify whether you want to make a partial or total withdrawal of the money in the CTS, as well as the account in which you want to receive the payment.
• Once you receive the request, the financial institution has a period of two business days to transfer the money to the indicated account.
• It is important to follow the procedures established by your company and the partner bank to ensure a smooth transfer.

What can I do if the company does not pay me my CTS within the deadline?

Companies that fail to pay the November Compensation for Time of Service (CTS) deposit may receive differentiated fines as it is considered a serious infraction. In that sense, the National Superintendence of Labor Supervision is the entity authorized to apply these sanctions that range between S/544.5 and S/129,224.

In the case of small companies, the fines range between S/2,227.5 and S/22,275, while for medium and large companies they range from S/7,771.5 to S/129,224. Finally, private sector workers have the right to file a complaint with Sunafil due to non-payment of this economic benefit, as well as initiate legal action against their former employer to collect the CTS they owe.