Withdrawal of CTS in the hands of the Executive: what did the Minister of Economy say about promulgating the rule?

This Thursday, the plenary session of the Congress of the Republic approved the total withdrawal of the Compensation for Time of Service (CTS) for all workers in Peru. This measure — which obtained 98 votes in favor, 9 against and 1 abstention — will allow workers to access all of their funds accumulated in the CTS, until December 31, 2024.

With the approval of Congress, the signature of the law has been sent to the Executive Branch, which has a maximum of up to 15 business days to raise any observations or outright announce its support for the parliamentarians’ decision. The bill had overwhelming support from 98 congressmen, who voted in favor; However, they cannot yet claim victory, since they must wait for government approval. On multiple occasions, the Minister of Economy, José Arista, has shown his disagreement with the withdrawal of the CTS.

CTS 2024: what did the Minister of Economy say?

The Executive Branch has the responsibility of enacting or not the withdrawal of Compensation for Time of Service. Congress and thousands of people are attentive to the decision that could take up to 15 business days, since this is the Government’s time limit to make a decision. However, approval by the Executive could take those 15 days, given that on multiple occasions the Minister of Economy has shown his disagreement with said change.

“The Executive, in the Council of Ministers, has analyzed the issue today and has decided not to observe this law (AFP). And at the same time I take advantage of this forum to invoke Congress to make this rule referring to the withdrawal of the CTS is respecting a minimum, which I estimate should be four months of unemployment. As you know, compensation for time of service allows a professional to maintain income while changing jobs, the average is four months. I would ask Congress to authorize it with a minimum floor of four months,” said the head of the MEF.

Minister Arista proposes a requirement of four months of unemployment to access the full Length of Service Compensation, with the argument that that is the average time it takes a person to find a new job. However, the MEF clarifies that the minister was referring to the possibility of withdrawing money from the CTS, but with at least four salaries intact.

How do I know how much money I have in my CTS?

Checking your balance is a simple process and can be done through your bank’s digital or telephone channels. You just have to contact them and check the amount of money you have. The important thing is to know which bank your CTS account is in to direct you to the correct service channel. Otherwise, you must ask in which bank they deposited this amount and make the respective query.

CTS 2024: what to do if the company does not deposit my CTS?

Companies in Peru are required by law to deposit Compensation for Time of Service to their workers twice a year, in May and November. This employment benefit seeks to protect the employee in the event of unemployment. If a company does not comply with this obligation, it commits a serious violation and, according to the Lima Chamber of Commerce (CCL), is exposed to fines. If the company does not make the corresponding deposit, The user has the possibility of making a complaint to Sunafil. You can request support from the user guide HERE.

In order to make the corresponding report you must follow the following instructions:

• Access the Government page HERE to report labor violations by a private company.
• Write the RUC number of the company.
• Register the address of the work center to be reported.
• Enter your personal information, such as cell phone number and email.
• Add the matters to report and select your complaint as appropriate: CTS deposit.
• The Sunafil virtual application will show you a confirmation message with the registration of your request.