By a large majority, the Commission Economy approved the opinion that establishes a new release of Compensation for Time of Service (CTS) for 2024. A day before, the Labor Commission did the same.
In the last two days, the initiative—concocted in more than a dozen bills—received the support of parliamentarians of various shades and political creeds—except for the rejection of Alejandro Cavero and the silence of Adriana Tudela, Noelia Herrera and Jaime Quito. — and is headed to the Plenary Session of Congress in order to alleviate the home economy after the recession and the rising cost of living: According to the opinions, 100% of the CTS will be available.
When will it be debated in Congress?
César Revilla, president of the Economy Commission, announced that the withdrawal of the CTS It will be scheduled in the Plenary Session of Congress only in the last week of April, since next week there will be a week of representation.
“If approved on Wednesday (yesterday, April 17), the opinion could be voted on in the fortnight of May,” he told RPP.
During the day, a handful of legislators asked Revilla to accumulate his initiatives in order to comply with the popular clamor, a fact that was questioned by Ilich López, who asked not to insist on it in order to have “a nice photo or a like on his social networks”, when the real problem is attacking the structural flaws that lead to decisions like these, and insisted on betting on financial education.
Here, Revilla recalled that they must first be decreed before accumulating. One of the measures, requested by José Luna Gálvez, seeks that financial entities give up to 10% for the CTS depositbecause if it were like that, “no one would take it out.”
The MEF opposes
The head of the Ministry of Economy and Finance (MEF), José Arista, questioned the measures seen in the Congressional committees, and considered it prudent to limit the release of CTS accounts.
Citing him, he asked that “a minimum floor of 4 months” be authorized because that is the time it takes to reintegrate into the labor market.
From the MEF, they confirmed to La República that Arista referred to having the resources of the CTS, leaving in each account an equivalent of four months’ salary. The figure is discretionary and they announced that Arista has yet to clarify what it meant.
Arista’s feint is aligned with current legislation, in which only the disposal of the surplus of four salaries from the CTS account is permitted.
The impact of CTS release
According to the SBS, CTS deposits in the financial system amount to S/8,926 million: potentially, that is the amount that would be injected into the market with this new authorization.
Previously, this measure was in force until December 31, 2023. Since the coronavirus pandemic, the balance of CTS accounts was reduced by more than S/22,000 million. Approximately, 5 million accounts have less than S/12,400.
Source: Larepublica
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