New CTS retreat: Congress states that it is exclusive to working women

The parliamentary group Alliance for Progressor (app) presented a bill with the objective of authorizing, in an exceptional way, the withdrawal of service time compensation (CTS) to relieve the negative effects of the gender wage gap and structural inequality in the workplace, which limit the financial autonomy of women.

The initiative occurs in a week in which the public agenda has a special focus on these problems, within the framework of the International Women’s Daywhich is celebrated on March 8.

CTS: What else does the bill say?

The bill No. 10398/2024-CR is mainly authorized by Luis Alberto Kamiche Morante, and Co-authors María Grimaneza Acuña Peralta, Nelcy Lidia Heidinger Ballesteros, Alejandro Soto Reyes, Idelso Maniel García Correa and Elva Edhit Julón Irigoín.

According to the document, the proposal is based on the panorama set out by the National Strategic Planning Center (Ceplan), where in 2024 Peru was in the 40th position of the global index of the gender gap and in the 10th position within Latin America and the Caribbean, with 75.59% closing of the gap.

Globally, the International Labor Organization (ILO) pointed out that women perceive, on average, 20% lower salaries than men, a difference that is attributed to discrimination, both direct and indirect, as well as occupational segregation. In Peru, this situation translates into a lower female presence in paid jobs and a salary difference of 25%, according to the Peruvian Institute of Economics (IPE). In some regions, the gap reaches 36%.

In terms of income, women in the country earn, on average, s/1,405.1 per month, that is, S/468.4 less than men, whose income amounts to S/1,873.5. This means that For each sun that a male worker perceives, a woman receives S/0.75. In addition, they have a lower salary negotiation margin, which limits their financial autonomy.

Contrast

However, according to the labor lawyer, Juan Valera, this proposal is wrong for the following reasons:

• Regulations on salary equity: In the country there are norms that guarantee salary equity between men and women. If the objective is to promote equality in remuneration and disposition of resources, the solution is not to release the CTS, but to strengthen the control of compliance with salary equity through the implementation of effective salary policies.
• The CTS as a protection fund: The CTS is a support fund for the worker in case of labor decoupling. Only the surplus of four salaries can be withdrawn, except extraordinary provisions. Allowing their anticipated use could leave workers without financial support in the work transition stage.
• Unconstitutionality: The Constitution prohibits equal discrimination. This project establishes a difference without livelihood between men and women, which would make it unconstitutional. In addition, the gender wage gap instead of combating it with existing mechanisms.
• Limited economic impact: In a country where labor informality exceeds 70% and microenterprises represent almost 80% of business fabric, many workers do not have CTS due to their labor regime or lack of formalization. Therefore, the supposed positive impact on the economy would be minimal and would not generate the expected dynamism.

In sum, for Valera instead of promoting measures that compromise the purpose of the CTS, mechanisms for inspection and salary equity must be strengthened to close the gender gap in the workplace.

What is celebrated on March 8?

He March 8 International Women’s Day is commemorated in honor of women’s historical struggles for their rights, especially in the workplace. The date has its roots in various events of the late nineteenth and early twentieth centuries, when workers from different countries began to mobilize demanding better working conditions, the right to vote and equal opportunities.

One of the most remembered events occurred on March 8, 1908, when 129 workers of a textile factory in New York died in a fire after declaring themselves on strike to demand fair working hours and better salaries.