Compensation for Time of Service (CTS) is a labor benefit intended for private sector workers in Peru. This fund is accumulated with the aim of providing an economic reserve in cases of unemployment or unforeseen situations. The deposits of the CTS They are held twice a year and each one corresponds to half of a monthly salary plus one sixth of the annual bonus. With the first deposit already done, the month in which the second deposit will be made has already been confirmed.
The CTS not only ensures a economic stability for the worker, but also represents an opportunity for long-term savings. The funds can be managed through various banking entities, such as BCP, Interbank and Scotiabank, facilitating their access and administration.
CTS: When will the second deposit be made?
The second CTS deposit will be made, at most, in November of this year, following the calendar established by labor legislation. This deposit complements the one made in May and is calculated, as mentioned above, taking half of a monthly salary plus a sixth of the bonus received during the year. Employers are obliged to make this deposit in the CTS accounts of their employees. before the deadlineensuring that workers receive their funds in a timely manner to avoid heavy penalties.
Will I be able to withdraw 100% of my CTS when it is deposited?
As of today, workers can access the full withdrawal of their Compensation for Time of Service (CTS). As recalled, the government enabled this possibility in May 2024, giving a deadline until December 31st so that all workers have access to these savings. It is possible to choose to withdraw the money in cash or transfer it to a savings account, depending on the worker’s preference. In addition, different banks already offer their users the possibility of withdrawing their money through their respective banking applications, which are easy to access and with immediate deposit.
When the deadline expires, workers will be able to withdraw these funds in their whole In the event of termination of employment, following the procedures established by financial institutions.
Who receives the CTS?
Compensation for Time of Service (CTS) was established with the aim of providing economic protection to workers in the event of termination of employment. This benefit has its roots in the labor reforms from the mid-twentieth century. Initially, it was conceived as a forced savings for workers, guaranteeing a cumulative fund that would allow them to cope with periods of unemployment.
Since then, it has evolved through various legislative amendments, adapting to the changing needs of the labor market and the economic conditions of the country. The CTS was formally implemented in 1924, under Law No. 4916, during the government of President Augusto B. Leguía. The Compensation for Time of Service is intended for all workers who work, at least, 4 hours a day and have a minimum of one full month of service within the last 6 months. In this case, from May to November.
Source: Larepublica
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