One of the trending topics is compensation time of service (CTS). As recalled, Congress enabled the free disposal of these funds last Thursday, May 2. In Peru; However, not everyone knows what the real contribution of this savings system is, how it can be calculated and how often the employer must deposit it in the respective accounts.
This mandatory contribution is consolidated as a key financial security tool for the workers. This benefitintended to protect the worker and his family in cases of unemployment, has been seen at the center of the debate. With these new modifications, it is necessary to understand their scope, know in which cases these funds can be accessed and what other factors are considered to have economic support such as CTS.
How is CTS calculated?
Calculate the amount of the CTS requires considering several factors. First, the complete service time up to the April 30 or October 31 of each year. The calculation base includes the last salary and computable remunerationwhich may incorporate regular bonuses, commissions and other additional items.
To correctly calculate the amount to be received, workers must add the days actually worked, divide them by 360 (number of days considered in a complete year), and then multiply the result by the monthly remuneration. It is necessary for workers to verify that the salary information is updated and correct to avoid errors in the calculation that could affect the final amount deposited.
If this process continues to be complicated, La República has a calculator that can help you in the operation to determine How much will be the amount deposited by your employer? in case it applies to you. You only need to enter the date you started working and other relevant information that will help in this process.
Do all workers have access to the CTS?
Access to the CTS it is not universal. The direct beneficiaries are those workers who meet certain requirements. One of them is having worked for at least a month in a certain company. Furthermore, the work days must exceed 4 hours daily until April 30 or October 31 of the current year. Likewise, if these requirements are met, but you have been in the company for less than 6 months, you will receive a proration of the total amount. If you have a seniority greater than this period, you will receive 100% of the CTS calculated for this period.
It is essential that each worker verify their eligibility for this benefit, reviewing their employment contract and consulting with the human resources area of ​​their company. This proactivity is essential to guarantee that all labor rights are respected and fulfilled.
What is CTS?
The compensation for time of service, better known as CTS, was established as a contingency fund that supports workers in periods of unemployment. Its purpose is to act as unemployment insurance, which helps the worker and his family during periods of job transition.
Each semester, companies make a deposit equivalent to a percentage of the worker’s salary in intangible bank accounts that can only be withdrawn under specific conditions. Recently, decisions such as the approval of the withdrawal of 100% of the CTS extraordinary circumstances have fostered debates about the flexibility and accessibility of these funds for workers.
Source: Larepublica
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