Congressmen from various groups have been presenting a series of bills in recent weeks to authorize workers to withdraw up to 100% of their Compensation for Time of Service (CTS). The last one to enter the documentary process of the Legislative Branch was that of parliamentarian Gustavo Cordero Jon Tay, who proposes that the deadline for this disbursement be until December 31, 2024.
His initiative is in line with the other proposals that are pending debate in Congress for final validation. It is worth mentioning that the Labor and Social Security Commission, chaired by Pasión Dávila, approved on November 7, 2023 an opinion to release the CTS funds until the last day of this year.
CTS withdrawal: what are the projects to release 100% of funds?
Since the deadline for formal workers to freely dispose of 100% of their CTS, Parliamentarians from various groups have presented 12 legislative initiatives to extend the deadline for withdrawing this economic benefit.
The first three projects that entered the documentary process were those of congressmen Flavio Cruz, Alejandro Soto and Jorge Luis Flores, who seek to authorize a new release of 100% of funds until December 31, 2024.
These proposals are already included in an opinion that was approved by the Congressional Labor Commission on Tuesday, November 7, 2023 and is pending consideration in the plenary session. Likewise, there are 5 other initiatives that support this same request, 3 to access the withdrawal with a deadline at the end of 2025 and one to be able to make the disbursement until 2026.
The latest bill referring to this issue was presented by parliamentarian Gustavo Cordero Jon Tay a day ago and its central objective is “to cover the economic needs caused by the economic recession that the country is going through.” All these proposals propose 100% CTS withdrawal; However, they differ in the deadline to do so.
- CTS Retirement until December 31, 2024 – Elva Julón (Alliance for Progress)
- CTS Retirement until December 31, 2025 – José Pazo (Somos Perú)
- CTS Withdrawal until December 31, 2026 – Segundo Quiroz (Perú Libre)
- CTS Retirement until December 31, 2024 – Edgar Reymundo (Together for Peru)
- CTS withdrawal until December 31, 2025 – Segundo Montalvo (Perú Libre)
- CTS retirement until December 31, 2024 – Raúl Doroteo (Popular Action)
- CTS withdrawal until December 31, 2024 – Jorge Coayla (Perú Libre)
- AFP withdrawal of up to 4 UIT and CTS withdrawal until December 31, 2025 – Luis Aragón (Popular Action)
- CTS withdrawal until December 31, 2024 – Flavio Cruz (Perú Libre)
- CTS Retirement until December 31, 2024 – Alejandro Soto (Alliance for Progress)
- CTS retirement until December 31, 2025 – Jorge Luis Flores (Popular Action)
- CTS retirement until December 31, 2024 – Gustavo Cordero Jon Tay (Popular Action)
Can the CTS be withdrawn in 2024?
As is public knowledge, Compensation for Time of Service (CTS) is a labor benefit that companies grant to formal workers to protect them when their contractual relationship ends. These deposits are made twice a year and the amount assigned varies according to the regime of the company in which one works.
December 31, 2023 was the last day on which Peruvians could use 100% of their CTS, in accordance with the scope of Law No. 31480. After this date, workers were prevented from accessing said amount unless they have accumulated at least four salaries to withdraw the surplus.
Given this situation, various parliamentarians have presented 12 bills to extend the period for withdrawing this economic benefit, which are pending approval in the Legislature.
Withdrawal CTS 2024: what is missing for it to be approved?
Unlike projects to withdraw AFP funds, initiatives that seek to authorize the disbursement of 100% of the Compensation for Time of Service must be processed in the Labor and Social Security Commission. Although there is an opinion in this regard, it has not yet been scheduled in the Plenary Session of Congress for subsequent debate and approval.
Another possibility is that the Board of Spokespersons agrees to exempt it from the procedure and it can be discussed with priority in the legislative assembly. However, this has not happened yet and legislators continue to present initiatives in this regard. If the rule is approved, the Executive Branch must promulgate the law within 15 days or observe it if applicable.
What did the Minister of Economy say about the CTS withdrawal?
After its presentation in the Congressional Committee on Economy, Banking, Finance and Intelligence; The head of the MEF, José Arista, expressed his rejection of the bills that seek to authorize a new withdrawal of 100% of the CTS.
“The CTS is a system in which you withdraw based on the period in which you change jobs and cannot find work. That little fund allows you to live, let’s say, those 5 or 6 months of forced unemployment that you are going to have. But to the extent that these accelerate, I think it is not a good idea because the funds have not been created to meet your need for cash, but rather to address this problem of temporary unemployment that you could face.”he said.
Source: Larepublica
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