After the announcement by the president of the Council of Ministers (PCM), Gustavo Adrianzén, the government of Dina Boluarte finally promulgated in the newspaper El Peruano the law that exceptionally authorizes the withdrawal of 100% of the compensation funds for time of services (CTS) until December 31, 2024.
However, workers registered on the payroll will still have to wait to access their money, because the approval of the regulation by the Ministry of Labor is pending, which must be made public within a maximum period of 10 calendar days. Since when will Peruvians be able to have 100% of their CTS funds? Find out the answer HERE.
Government promulgates CTS withdrawal: when will I be able to have 100% of my funds?
The government of Dina Boluarte decided not to observe the rule that expands access to compensation funds for time of service (CTS) throughout 2024 and promulgated it in the newspaper El Peruano this Friday, May 17. With this, around 5 million workers in the private sector will be able to use this economic benefit to cover their basic needs.
“Workers included within the scope of the Single Ordered Text of Legislative Decree 650, Compensation Law for Time of Service, approved by Supreme Decree 001-97, are authorized for one time only and until December 31, 2024. TR, to freely dispose of one hundred percent (100%) of the deposits for compensation for time of service (CTS) made in financial entities and that have accumulated as of the date of disposal,” states Law 32027.
The next step is for the Ministry of Labor and Employment Promotion (MTPE) to publish the regulations of this standard within a maximum period of 10 calendar days from its entry into force. Once it is ready, the Peruvians registered on the payroll will be able to access the money accumulated in their CTS accounts the next day, Tuesday, May 28. Below, find out the possible dates, according to the professor and Finance expert at Pacífico Business School, Jorge Carrillo:
- Publication of the regulations by the Ministry of Labor: May 27 (10 calendar days).
- Start of withdrawals: May 28.
Can I withdraw all of my money from CTS?
Unlike the withdrawals of funds from the AFPs, the free disposal of the CTS could be carried out from the day after the publication of the regulations, as occurred in 2021 and 2022. According to the rule published in the official newspaper El Peruano, Private sector workers have the ability to withdraw 100% of these deposits.
This means that they will be able to release all of their money accumulated in their CTS accounts, taking into account that this year the May payment has already been made and the November payment is pending. Consequently, financial entities must respond to disbursement requests submitted by workers, in accordance with the provisions of the MTPE regulations.
CTS Retirement 2024: who does it correspond to?
The deposit of money as compensation for time of service corresponds to workers who are subject to the labor regime of private activity and who comply, on average, with a minimum working day of four hours a day.
Likewise, other direct beneficiaries are workers in the agricultural regime who do not receive this economic benefit with their remuneration, as well as domestic workers.
Who does not receive CTS?
- 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.
Source: Larepublica
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