This Wednesday, November 15, is the last day for employers to pay Time of Service Compensation (CTS)which is the employment benefit granted against the risk of a possible termination of the employment relationship and loss of your citizen income.
In this sense, it is up to workers who are subject to the private labor regime, who comply with a minimum working day of four hours a day, and who have a current relationship with the company as of at least October 30. However, what happens if the CTS is not deposited on time?
“It has two consequences. lThe first is that bank interest begins to be generated in favor of the employee because the deposit must be in a bank account, and the second is that the employer can be fined. if the labor inspection verifies non-compliance with the labor obligation,” labor lawyer Germán Lora told La República.
Workers in the REMYPE regime also have access to 50% of the benefit. It should be noted that part-time workers are not entitled to receive it.
How much are the fines for non-payment?
According to the specialist, the amount of the fines varies depending on the number of workers affected and the size of the companies. In the case of large and medium-sized companies, it can reach up to S/129,000.
Likewise, according to the Lima Chamber of Commerce (CCL), for microenterprises and small businesses, the fine rates are different. For the first, which has 10 or more workers, the fine can reach S/2,227; and for the second, with 100 or more workers, it can reach S/22,275, according to Supreme Decree No. 008-2020-TR.
Can the employer withhold the worker’s CTS?
It is important to specify that the employer or companies cannot withhold the CTS payment. Only in exceptional cases and during the employment relationship, it is not allowed to withhold payment days before the corresponding date.
“It could only be done in cases, for example, of a judicial retention for food. The CTS is an asset of community partnerships; if you are married or have a formal de facto partnership, it belongs to both parties. So, if there is any conflict, Half goes to the spouse or de facto union,” Lora stressed.
How much is the CTS?
The value of the CTS is equivalent to one salary plus one sixth of the bonus. Therefore, approximately 1.17 salaries are received per year. According to Jorge Carrillo Acosta, professor and finance expert at Pacífico Business School, for example, if a worker has a fixed remuneration of S/3,000 per month, his annual CTS will be S/3,500, receiving a semiannual payment of S/1,750 in May. and S/1,750 in November.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
