The Compensation for Time of Service (CTS) It is a labor right that provides economic protection to workers in the event of termination of employment. With the arrival of 2024, and the government’s authorization for the free disposal of these savings, many are wondering what the Steps to access these funds and until when they can do so.
The CTS It is deposited twice a year into the workers’ bank accounts. This fund acts as a unemployment insurance, providing temporary economic stability. In this note, you will find everything you need to withdraw your funds from CTSincluding deadlines and banking procedures.
CTS withdrawal: until when can I withdraw up to 100% of my savings?
The withdrawal of the CTS allows workers to access 100% of your funds in the event of termination of employment. The deadline to make this withdrawal is December 31 2024. Banks such as BCP, Interbank and Scotiabank have specific procedures to facilitate this process. To verify or withdraw the available balance, simply enter online banking or visit an agency.
When are they going to deposit the CTS for the second time in 2024?
The CTS It is deposited twice a year: in May and in November. These deposits are made by the employer directly into the worker’s bank account. The second CTS deposit in 2024 will be made in November. Workers can withdraw this fund in its entirety in the event of termination of employment, following the procedures established by financial institutions.
What is the CTS and who can access this economic benefit?
The Compensation for Time of Service (CTS) It is a work benefit that protects the worker in case of termination of employment, providing a financial support fund while looking for a new job opportunity. All formal workers who work at least four hours a day are entitled to this benefit. The amount of the CTS It is calculated based on the worker’s remuneration and is deposited in a bank account in his or her name. twice year.
This fund can be withdrawn in its entirety in the event of termination of employment, complying with the requirements established by law. Besides, the CTS It is not subject to taxes, so the amount withdrawn is full.
CTS: since when has this work benefit been provided?
The Compensation for Time of Service (CTS) It was established with the objective of providing economic protection to workers in the event of termination of employment. This benefit has its roots in the labor reforms of the mid-20th century. Initially, it was conceived as forced savings for workers, guaranteeing a cumulative fund that would allow them to face periods of unemployment.
The CTS was formally implemented in 1924under the Law No. 4916during the government of the president Augusto B. Leguia. Since then, it has evolved through various legislative modifications, adapting to the changing needs of the labor market and the economic conditions of the country.
Source: Larepublica
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