The recent approval by Congress of the law that enables the total withdrawal of Compensation for Time of Service (CTS) has generated great expectations among Peruvian workers. The regulations, which now await the president’s decision Dina Boluartecould mean significant economic relief for thousands of private sector employees.
The proposal, which was sent to the Executive Branch after receiving broad parliamentary support on May 2, puts the option of enacting or observing the law in the hands of President Boluarte. With a defined deadline for the decision, workers wait to use their accumulated savings to meet urgent needs.
How long does Dina have to enact the law?
The deadline for President Dina Boluarte to make a decision on the promulgation of the law that allows the withdrawal of 100% of CTS funds is May 24, 2024.
Once the law is published in El Peruano, the Ministry of Labor must regulate the standard within a maximum period of 10 calendar days from its entry into force.
What has the Executive said about the law for the withdrawal of CTS?
So far, Boluarte’s government has taken a cautious stance. The president of the Council of Ministers, Gustavo Adrianzenexpressed, in a press conference, that the Executive is evaluating the situation in detail.
Without providing details, he mentioned that there is still no concrete decision: “The Government is in the evaluation process. We do not have a decision to report yet. We are within the deadline“, he pointed.
When is the CTS deposited?
CTS deposits are made twice a year, in the months of May and November. This regularity ensures that dependent workers accumulate a reserve fund that offers economic protection in situations of unemployment.
It should be noted that CTS is intangible. Their withdrawal is only permitted under specific conditions dictated by law, such as the termination of the employee’s employment relationship.
Who deposits the CTS?
Private sector employers in Peru are responsible for making these semiannual deposits. This obligation extends to all companies that have workers under a private activity regime, which thus guarantees fundamental economic protection for the worker.
How much is the fine for companies that DO NOT deposit CTS?
The financial penalty for companies that fail to comply with the CTS deposit varies depending on the size of the company and the number of affected workers.
The fines range between S/566 and S/134,518, which represents an effective pressure mechanism to ensure compliance with this important employer obligation. The Superintendence of Labor Inspection (Sunafil) is the entity responsible for applying the fines and to determine them it takes as a basis the current tax unit (UIT), which is S/5,150.
Source: Larepublica
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