The Compensation for length of service is mostly known as the CTS and they are one of the most expected amounts of money by formal workers in the Peru. This year, Peruvians will be able to have this money again according to the Peruvian authorities. In May 2023, private sector workers received the first payment of this benefit. Therefore, find out in the following note all the details about the payment of the CTS.
How much of my CTS can I withdraw?
Until December 2023, formal workers will be able to withdraw the excess of four salaries from their CTS. Another point to take into account is that CTS deposits can be seized when the worker has food debts and up to 50% of these.
“Keep in mind that the CTS is mandatorily deposited in the bank chosen by the worker, even when there is a judicial seizure for food debts. In this case, the company must inform the judge that the CTS has been deposited in accordance with the law and that, in any case, the seizure must be requested from the depositary bank; except in the case of the CTS that is recorded in the liquidation of the worker who ceases and whose term for its deposit has not yet expired.says the Chamber of Commerce of Lima.
Can you withdraw the CTS deposited by companies?
This is a question that many ask themselves and whose answer is yes because, according to what is established in Law 31480, this year workers can again withdraw the amount of CTS that they deposit due to the free availability of this payment. Formal workers have until December 31, 2023 to do so.
This law allows workers to use all the deposits for compensation for time of service made in the different financial institutions and that they have accumulated as of the date of disposition. It should be noted that the withdrawal can be done remotely or online, or through the means provided by each financial institution, either through internet banking or through the popular and increasingly used applications.
Will the withdrawal date period be extended?
It should be noted that, so far, the withdrawal of this amount will only be valid until December of this year, but in the Congress of the Republic there is already an initiative that seeks to extend the date.
It was the Popular Action (AP) bench that presented a bill to extend until 2026 the free availability of the total CTS, with which they seek to allow the withdrawal of this extra money for three more years.
How to withdraw the CTS from my bank account?
As is known, the CTS is a benefit that a formal worker in the private sector who is on the payroll has. This is similar to unemployment insurance and, in general, you can only access this fund when you end your employment relationship, but the Peruvian government arranged for the release of part of this money.
To withdraw your money from the CTS that corresponds to you, you must meet the following requirements:
- Have National Identity Document (DNI).
- Have a debit card associated with your CTS account.
- Communicate with the bank where you have your CTS account, via the web, by phone or in person.
- The financial institution will guide you on how you can access your money.