The Congress of the Republic will begin this week the debate on bills that seek to authorize formal workers to withdraw 100% of their Compensation for Time of Service (CTS). These initiatives are accumulated in an opinion of the Labor and Social Security Commission that has called, for this Tuesday, April 16, an ordinary session to address this issue.
Likewise, the president of the Economy, Banking, Finance and Financial Intelligence Commission, César Revilla, pointed out that tomorrow, Wednesday, April 17, this legislative proposal that seeks to extend the deadline for the disbursement of this economic benefit that expired on December 31, 2023.
Release of the CTS will be discussed in two commissions this week
The Labor and Social Security Commission—chaired by Congressman Pasión Dávila—convened, for this Tuesday, April 16, its nineteenth ordinary session. According to the agenda of this parliamentary working group, the opinion that proposes the extension of the deadline for the free disposal of the CTS will be supported and debated.
This legislative proposal authorizes a new withdrawal of this economic benefit, which workers on the payroll can make until December 31 of this year, with the aim of covering their needs caused by the current economic crisis. However, this is not the only ruling commission.
The president of the Economy Commission, César Revilla, declared to RPP Noticias that his working group has been preparing a prediction on the release of 100% of the CTS, which would be discussed this Wednesday, April 17.
“We have approximately 14 bills, but there are at least nine benches that already have their own initiative. So, the normal thing is that the benches support them. I believe that there should be no problems with the approval of this ruling. It will be the withdrawal of the CTS until 2024 because it is understood that this year has been hit by the economic recession,” he expressed.
CTS Withdrawal: when would it be debated in the Plenary Session of Congress?
According to parliamentarian César Revilla, the opinion proposed by the Economy Commission contemplates free access to the funds of the Compensation for Time of Service (CTS) until December 31, 2024. Likewise, he considered that “the country has begun to recover and these types of measures will no longer be necessary for next year.
For Revilla, this Wednesday, April 17, the legislative proposal must be approved in the working group that he presides and its subsequent debate in the plenary session of Congress would be before the first half of May.
“We would have to wait two weeks. It is signed, it is published and it has to be published for two weeks or so. Then, the week of representation is coming and the following week a vote could be held. If approved on Wednesday, the opinion could be voted on in the fortnight of May or if not, it will be a matter of a week. There are parliamentary procedures that have to be followed.”he said in the program ‘Economy for all’, on RPP.
How many bills have been introduced regarding CTS withdrawal?
To date, three withdrawals of CTS funds have been authorized. The last of them occurred on December 31, 2023 through the promulgation of Law 31480, which sought to cover the economic needs caused by the Covid-19 pandemic. Below, review all the initiatives in Congress that seek to extend the deadline to access this money:
- CTS retirement until December 31, 2025 – Jorge Luis Flores (Popular Action)
- CTS Retirement until December 31, 2024 – Alejandro Soto (Alliance for Progress)
- CTS withdrawal until December 31, 2024 – Flavio Cruz (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 – Jorge Coayla (Perú Libre)
- CTS retirement until December 31, 2024 – Raúl Doroteo (Popular Action)
- CTS withdrawal until December 31, 2025 – Segundo Montalvo (Perú Libre)
- CTS Retirement until December 31, 2024 – Edgar Reymundo (Together for Peru)
- CTS Withdrawal until December 31, 2026 – Segundo Quiroz (Perú Libre)
- CTS Retirement until December 31, 2025 – José Pazo (Somos Perú)
- CTS Retirement until December 31, 2024 – Elva Julón (Alliance for Progress)
- CTS retirement until December 31, 2024 – Gustavo Cordero Jon Tay (Popular Action)
- CTS retirement until December 31, 2024 – César Revilla (Fuerza Popular)
- CTS withdrawal until December 31, 2024 – María del Carmen Alva (not grouped)
- CTS withdrawal until December 31, 2025 – Digna Calle (Vamos).
What is CTS?
The Compensation for Time of Service (CTS) In Peru, it represents a labor benefit intended to function as a reserve fund for the worker, in the event that he or she is separated from his or her job. This fund is established from contributions that the employer makes every six months (May and November) on behalf of the worker, in a special bank account opened for this purpose. The amount deposited is equivalent to a full salary for each year of service, prorated according to the time worked in the corresponding semester.
Source: Larepublica
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