CTS 2024: when do they pay Compensation for Time of Service and how to calculate it?

In May there will be first CTS deposit. This social benefit, aimed at all employees on the payroll, is intended to function as an economic lifeline in the event that the worker is fired. With this monetary fund, people will be able to survive until they find another source of income.

In accordance with current regulations, companies are required to deposit the Compensation for Time of Service (CTS) only in the months of May and November. To comply with this provision, companies have a deadline of the 15th of both months to be able to make the corresponding payment.

In the event that the corresponding deposit is not made, the National Superintendency of Labor Supervision (Sunafil) is the entity empowered to apply the corresponding economic sanctions. The amount of the fines varies depending on the sector to which the company belongs and the number of employees, so it can amount to up to more than S/120,000 in some scenarios.

How to calculate my CTS 2024?

The amount of the Compensation for Time of Service varies depending on the type and size of the company: large company, medium, small and microenterprise.

Medium and large company

In the following example, suppose that a worker has been employed for the entire semester in a medium or large company and receives a salary of S/1,800:

• 1/6 bonus: S/300
• CTS: 50% of the salary for April 2024 (S/900) + 1/6 of the bonus for December 2023 (S/300)
• The total CTS to be deposited will be S/1,200.

Small company

According to the Lima Chamber of Commerce, there are three cases related to the payment of the CTS in small businesses:

• If a small company is not registered in the Registry of Micro and Small Businesses (Remype), all its workers, both former and newly hired, will have the right to receive Compensation for Time of Service (CTS) following the regulations applicable to the medium and large companies.
• If the small business is registered in Remype, employees who were hired before the company’s registration in said system are eligible to receive full CTS payment.
• Workers who join the company after registration will receive a CTS that corresponds to 50% of the amount granted under the general regime (monthly salary).

Microbusinesses

• If the microenterprise is not registered in the Remypeall its workers will have the right to receive the CTS under the general rule.
• If the microenterprise was registered with Remype, workers hired before registration can receive the CTS payment under the general rule.
• If the workers were hired after the microenterprise was registered with Remype, these collaborators do not have the right to the CTS.

It is important to remember that workers have the possibility of choosing whether they want their CTS to be deposited in dollars or soles, and it is the companies’ job to have the corresponding options.

Can the CTS be freely withdrawn?

Currently, the withdrawal of 100% of the CTS is not available, December 31, 2023 was the last date that Peruvians had the possibility of freely disposing of the entire compensation, thanks to the provisions of Law no. º 31480, which was published on May 25, 2022, during the COVID-19 pandemic.