The Compensation for Time of Service (CTS) It is a work benefit granted semiannually to employees of various companies in Peru, whether micro, small, medium or large. Unlike a bonus, this amount is generally not available immediately after deposit, as it is intended as financial support in cases of resignation or dismissal.
However, due to the situation caused by the coronavirus pandemic, the Peruvian authorities decided to make an exception to this rule and allow, for a few months, workers in private companies to access these funds. In this context, many employees wonder about the date of the next deposit, the amount to be received and the final deadline to use the CTS. To obtain answers to these questions, I invite you to consult the information note in Depor.
When do they pay the CTS?
Companies make the deposit of Compensation for Time of Service (CTS) on two annual occasions: the first takes place in May (it has already been completed), and the next is scheduled for November, with the 15th of that month as the deadline. . It is crucial to keep in mind that the amount allocated can fluctuate, as it is linked to your seniority in the company and the salary you receive.
How do I calculate how much I will receive from CTS?
According to what was explained by associate partner from the Labor Area of EY Peru, Mauricio Matos, to the Andina agency, the calculation of the CTS is carried out as follows:
- If the worker receives an imprecise or variable main remuneration, the CTS will be the result of the average salary received by the worker in the six months that comprises each period. This means that the salary is averaged from November to April (for the May CTS) or from May to October (for the November CTS).
- If the worker receives a fixed remuneration, but has imprecise or variable complementary remuneration (for example, he receives overtime), these amounts will be included in the calculation as long as they have been received 3 or more times in the November period of the year prior to April (for the May CTS) or in the period from May to October (for the November CTS), in which case the concepts are added and divided by 6.
- To calculate the amount, take into account your monthly salary, then add 1/6 of the bonus (divide your bonus by six). Divide that amount by 360 and then multiply it by the days worked (for the entire semester, it would be 180).
What is the amount you can withdraw from your CTS?
Currently, there is no specific amount that workers can withdraw. In reality, the amount depends on the balance you have in the account and the money you need to have available. Remember that as long as the law remains in force and you have a balance in your account you can withdraw the amount you want and also as many times as you want.
Until when can you withdraw your CTS?
The last day to withdraw the CTS is December 31, 2023. Remember that if you resigned or were fired you do not need to rely on the rule to do this procedure. Likewise, after that date, workers will be able to obtain their CTS if they have accumulated an excess of four salaries.
What do you need to withdraw your CTS?
You can do this procedure in person or online (through the bank’s app). To choose the right one you must take into account the amount you want and also the bank where your money is located.
- In person: Go to the bank where you have your CTS account and use their ATMs or go to the counter if the amount is greater than 2,500 soles. Remember that to complete the process with an advisor you must bring your ID and the account card.
- From a website or app: Download the app of the bank where your money is and look for the alternative transfer between accounts. You should know that if the money will be sent to another bank, they will probably charge you a commission that will be deducted from your compensation for service time. To carry out the procedure online, you only need to enter the bank’s website.