Accounting balance and available balance: know what both mean and which one you can use to withdraw your money instantly

A few days before the Executive decides on the future of the withdrawal of the CTS, the deadline for companies to deposit the first amount of this 2024 for all workers that they enjoy this benefit. Until the withdrawal is approved, savers who have an account in which the Compensation for Time of Service (CTS) is deposited will be able to go to their bank and check if the amount deposited is correct.

When going to financial centers, users are likely to see two terms that can be difficult to understand: accounting balance and available balance. Both terms refer to the money that moves within the account itself. Despite this, it is important to know that only one of them can be withdrawn in the event that the Government decides to enact the optional withdrawal of the CTS. Below, we show you all the information you need to know to maintain a responsible level of finances and plan your expenses in case you plan to have this money.

Differences between Accounting Balance and Available Balance

Available Balance

The available balance of the Compensation for Time of Service (CTS) In Peru it is the amount of money that the worker can withdraw or use immediately. This balance represents accessible funds, excluding any deposits or transactions that are in the process of verification or subject to hold. In essence, the available balance indicates the money actually accessible to the worker at any given time, reflecting unrestricted funds.

Countable balance

He countable balance of the Compensation for Time of Service (CTS) in Peru it is the total amount registered in the account CTS of the worker, including all deposits made by the employer and interest generated to date. This balance reflects the total accumulated in the account, without considering whether the funds are available for immediate withdrawal. In principle, the accounting balance shows the total value of the CTScovering both accessible funds and those that could be subject to withholding or verification.

CTS: since when has this economic benefit been provided?

The Compensation for Time of Service (CTS) In Peru it is a mandatory social benefit for private sector workers, intended to provide them with an economic support fund in the event of termination of employment. It was implemented in Peru in 1954 as part of labor policies to protect workers in the event of termination of employment.

Employers make semiannual deposits in May and November into CTS accounts in the worker’s name, equivalent to approximately half a month’s salary for each semester worked. Although the balance accumulates, the worker can only withdraw a portion under certain conditions, such as the termination of the employment relationship or when the balance exceeds four salaries.