Dina Boluarte will evaluate withdrawal of CTS: when could the law be enacted?

Thursday, May 2, The Congress of the Republic debated the law that allows 100% of workers’ CTS to be withdrawn and was approved with 98 votes in favor, 9 against and 1 abstentionso the law is valid until December 2024. That same day, the president of Congress, Alejandro Soto signed the law so that it can be submitted to the Executive Branch for observation.that is, by President Dina Boluarte.

So far, it is known that Dina Boluarte has already received the autograph and all that remains is for the president to give approval or an observation before it is published.

Given the approval, the congressman of the Magisterial Bloc, Pasión Davila, indicated that the approval of the withdrawal of 100% of the CTS will not benefit the almost 30 million Peruvians, but it will benefit some 4 million who have access to a CTS for their jobs. , so it will help to overcome the problem of the economic recession that Peru is going through.

Is there a possible withdrawal date?

Currently, after the autograph has been delivered to the Executive Branch, 15 days must pass until President Boluarte reviews it. For this reason, it is estimated that the autograph will be promulgated on May 24.

But if the autograph is observed by the Executive, it will have to wait to be returned until Congress, where it can be debated again and reconsidered by the Labor and Economy Commission, and then go to the Plenary Session of Congress and be approved by insistence.

However, if the Executive simply does not want to declare by law, the Congress of the Republic has the power to promulgate the autograph independently and published in El Peruano.

José Arista: why do you disagree?

Compensation for Time of Service (CTS) is the mechanism that was established in 1924 to guarantee a base salary for people who find themselves without a job, giving them time to find a new job with a pension that helps them pay for themselves.

Under this premise, the current Minister of Economy, José Arista, who said that Dina Boluarte’s Government is a disaster, called the attention of the congressmen of the Labor and Economy Commissions, and emphasized that the total withdrawal of the CTS would harm to the population.

“(…) I take advantage of this forum to call on Congress to ensure that this rule referring to retirement from the CTS respects a minimum, which I estimate should be four months of unemployment. As you know, compensation for time of service allows “A professional maintains income while changing jobs, the average is four months. I would ask Congress to authorize a minimum floor of four months,” Arista urged.

The law that allows the withdrawal of 100% of the CTS is No. 30334, published in 2015, which makes it possible to withdraw excess 4 months of CTS pension for workers who decide to opt for this disbursement.

What will be the possible dates to withdraw my money?

In the hypothetical case that the Executive Branch does not observe the signature and gives the green light to the total withdrawal of the CTS, the approximate date for the withdrawals would be June 4, 2024, according to economist Jorge Carrillo Acosta, professor at the Universidad Pacífico Business School.

“Unlike the withdrawals of AFP funds, in the case of the CTS the disposition of the money could be made from the day after the publication of the regulations, as happened in 2021 and 2022,” said Carrillo.