The Executive Branch promulgated Law 32027, which authorizes formal workers to freely dispose of 100% of the Compensation for Time of Service (CTS) until December 31, 2024, so that they can cover their basic needs due to the current economic crisis.
This standard must be regulated by the Ministry of Labor within a period of no more than 10 days and it is estimated that the disbursement of this economic benefit would begin in the first days of June. Unlike the withdrawals of funds from the AFPs, the disposition of the CTS could be made from the day after the publication of the regulations, as occurred in 2021 and 2022.
Executive Branch enacts law to withdraw 100% of CTS
Through Law 32027, the Government of Dina Boluarte makes official, this Friday, May 17, that workers can access the one-time optional withdrawal of their entire CTS until the end of 2024. The rule, which is signed by the head of state, was published in the official newspaper El Peruano and seeks to mitigate the increase in prices of basic goods and services caused by the economic recession that the country went through.
According to the only final complementary provision, the Ministry of Labor and Employment Promotion must regulate the standard within a period of no more than 10 days. In that sense, the first withdrawals could be made in the first days of June, at the latest.
It is worth mentioning that only workers who are in the formal system will be able to access 100% of this money, since other informal employees do not have this benefit.
Who can access the CTS withdrawal this 2024?
All workers who are subject to the private activity labor regime and who comply, on average, with a minimum working day of four hours a day will receive the next CTS payment. Likewise, other direct beneficiaries are those who work in the agricultural regime who do not receive this economic benefit with their remuneration, as well as domestic workers.
Who is not entitled to receive the CTS?
In accordance with current regulations, the following are not entitled to receive payment of Compensation for Time of Service:
- Workers who work less than four hours a day
- Workers who receive full annual remuneration
- Those who receive 30% or more of the rates paid by the public
- Workers in the agricultural labor regime who have chosen to collect their CTS together with their remuneration (Law 30110 and DS 005-2021-Minagri)
- Microenterprise workers hired after the company registered with Remype.
CTS 2024: how much is the fine for not making the deposit?
According to Pamela Duffy, Dentons Peru lawyer, failure to comply with the deposit of the CTS within the legal period constitutes a serious administrative infraction in socio-labor matters. In that sense, it states that the Regulations of the General Labor Inspection Law establish that companies can receive fines, which are differentiated according to the size of the organization.
“They range from S/566.5 to S/ 134,518. Sunafil is in charge of applying these sanctions if it determines the existence of violations due to the lack of deposit of the CTS,” he explained.
Source: Larepublica
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