Government promulgates withdrawal of 100% of the CTS: at the end of May you will be able to have your money

The Government of Dina Boluarte made official this Friday, May 17, the law that allows the withdrawal of 100% of the CTS. According to the text of the opinion, the regulation should be published within a period of no more than 10 days. In that sense, Peruvians who work in the private sector will be able to use their money starting May 28. It is estimated that the potential amount to be released is around S/9,000 million.

According to Jorge Carrillo Acosta, professor and Finance expert at Pacífico Business School, the disposition of the CTS money – unlike the withdrawals of AFP funds – could be made from the day after the publication of the regulations that will have to be carried out by the Ministry of Labor, in its capacity as governing body.

And, although the Superintendence of Banking, Insurance and AFP (SBS) has the power to issue complementary regulations, in the last optional withdrawal that ran until December 31, 2023, it declined to carry them out. On the contrary, through a statement, it clarified that “no additional regulations are required for effective compliance.”

Consequently, the entities of the financial system and the savings and credit cooperatives (Coopac) must respond to the requests for withdrawal from the CTS, presented by the workers, in accordance with the provisions of the aforementioned Regulation and from the date of entry into force. validity.

In this way, and as occurred in previous withdrawals, the provision of CTS money will be available almost immediately after the law and its regulations are published.

Who has access to the CTS withdrawal?

The CTS is a right only for formal workers, who only represent 28.9%, according to the National Institute of Statistics and Informatics (INEI).

Although all workers in the private labor regime can access the CTS, they must work at least four hours a day and have a full month of service in the calculation period. Also included are workers in the agricultural regime who do not collect their CTS together with their remuneration and domestic workers.

On the other hand, Those who work in the public sector, those who work less than four hours a day and micro-business workers hired after the company’s registration in Remype are excluded.according to Mauricio Matos, Partner of the Labor Area of ​​EY Peru.

How to make my money profitable?

Carrillo Acosta points out that the least risky option is a fixed-term deposit in a bank, financial institution or savings bank, because its insurance covers up to S/122,420. Currently, the consensus of savings banks regarding fixed-term deposits is between 7% and 7.5%, compared to previous historical levels of 10% to 12% with a higher and much more auspicious reference rate.

On the other hand, although cooperatives are a riskier alternative because they do not yet have insurance, They have better profitability, since they can pay up to more than 10% per year. Leaving it in a freely available voluntary contribution account in an AFP would be another option.

Key data

According to official figures from the Superintendency of Banking, Insurance and AFP (SBS), until before the last deposit in May, commercial banking comprised S/6,424 million 908,000, while financial companies and municipal savings banks accumulated about S/422,027 million and S/1,905 million 219,000, respectively.

In February 2020, before the arrival of the pandemic and, therefore, before optional withdrawals were approved from the Congress, CTS deposits in the financial system amounted to S/21,850 million 491,000. A year ago (February 2023), CTS deposits were half: S/10,230 million 158,000.

In that sense, Maricarmen Alva, parliamentarian and one of the authors of the law, pointed out that 60% of the workers used the money from the last withdrawal for day-to-day expenses and the remaining 40% used it to settle their pending debts or to invest.