Congress approves the withdrawal of CTS: how much is the amount and until when can the company deposit it?

A new date has been set to discuss the withdrawal of the Compensation for Time of Service or CTS, The Congress of the Republic announced that the debate around this charge will take place this Thursday, May 2, with the aim of giving interested parties the opportunity to withdraw their funds until December 31, 2024. This legislative proposal has been increasing doubts around this benefit, from when the payment should be made to how it should be calculated.

At the moment, The CTS is a benefit that is granted to all Peruvian workers, as it is supported by law at the national level. Its main objective is to provide an economic fund to the worker in case of unemployment, that is, If the person is unemployed, this fund will serve as support until the person has the opportunity to find another job.

This benefit is constituted as a deposit that the employer held semi-annually on two datesin a bank account assigned to the worker’s name. The amount is equivalent to a percentage of the employee’s salary, and it can be withdrawn partially or completely under certain conditions established by law, such as cessation of work or in special circumstances authorized by the Government.

In what months should the CTS deposit be given?

Currently, the withdrawal of this benefit is carried out on two fixed dates in different months nationwide. During these periods, companies have the obligation to deposit the CTS. It is important to remember that the 15th of each month is the deadline for employers to make the corresponding deposit. The dates for disbursement are as follows:

• The first deposit must be made between May 1 and 15.
• The second deposit must be made between November 1 and 15.

CTS Retirement 2024: how to calculate it?

Determine the amount of the CTS It can be a somewhat complex process. It is mainly based on the worker’s monthly salary and their length of service in the company. The payment calculation involves an accumulation for each full year of work and a proportion for the additional months, in case the employee has not completed a full year. It is also important to note that certain components of the employee’s compensation, such as bonuses or gratuities, may affect the final calculation.

Overtime and other remuneration Variables that have been received at least three times during the reference period are included in the calculation of compensation for time of service. All amounts received are added and divided by six to obtain the average. The calculation of the final amount must be done using the following criteria:

[Sueldo + asignación familiar (si es que la tuviese) + (gratificación X 1/6)]/2

If you want to use a faster and easier method, We recommend you use the La República calculator. On this website you will only have to enter the data such as date of entry, work time and other data that will allow you to calculate the amount you have to receive and the maximum date on which your employer would deposit you.

CTS 2024 Retirement: what is missing for the ruling to be finalized?

The Congress of the Republic He resumed the discussion of the bill that allows the withdrawal of up to 100% of the Compensation for Time of Service (CTS). This Thursday it will be seen in the plenary session of Congress whether or not this bill is approved.

The project does not require a qualified majority for its approval, since it is not an organic law or a budgetary norm. According to article 52 of the Congress Regulations, a simple majority will be sufficient for the opinion to be approved.

If the project is approvedthe law that authorizes the disbursement of 100% of the CTS until December 31, 2024 will be sent to the Executive Branch. The President of the Republic may observe the law or promulgate it and publish it in the official newspaper El Peruano.