When is the deadline for the government to issue regulations for 100% withdrawal of CTS? | Answers

Finally, the law for 100% withdrawal of CTS was approved. With the signature of the President In Boluarte And the President of the PCM, Gustavo Adrianzén, promulgated Law 32027, which authorizes the free disposal of 100% of Compensatory Time of Service (CTS) for all formal and salaried employees. This withdrawal is authorized only once and will be valid until December 31, 2024. Currently, compensation for service (CTS) is paid to workers in Peru, as specified by law. This bonus, which is given twice a year, is meant to help them if they are unemployed.

When will CTS 2024 be available?

On Friday, May 17, the government announced the authorization of 100% withdrawal of Compensation for Time of Service (CTS) funds till December 31, 2024. Act 32027 bears the signatures of President Tina Poluarte and the owner of PCM. , Gustavo Adrianzén.

The final supplemental provision describes that the executive branch has a maximum of 10 calendar days, counted from enactment, to approve the provisions of this Act; That is, one day after its announcement.

That is, on Monday, May 27, the Ministry of Labor and Employment Development will approve the regulation and access to CTS accounts will be accessible from the next day, Tuesday, May 28.

Full Congress approves 100% CTS withdrawal

By 95 votes in favor, nine against, and one abstention, the Congress of the Republic approved alternative text for the opinion of bills 6495, 7010, 7130 and others, which authorize the provision of 100% Compensated Time Service (CTS). ) of workers, till December 31, 2024. The text is exempt from a second vote, but it still has to go through the executive branch, where it will be observed or finally announced.

When will you deposit CTS 2024?

Below, we provide two dates on which companies are required to deposit CTS:

• During the first 15 days of May (upto May 15).
• 15 days from November (upto 15th November).

How to Calculate CTS 2024 Fee?

According to Mauricio Matos, co-partner of EY Peru’s labor sector for the Andina agency, he explained how to calculate the CTS:

• For an employee receiving an imprecise or variable prime salary, the CTS results from the average salary earned by the employee over the six months covering each period. Hence, the salary is averaged from November to April (May CTS) or May to October (November CTS).
• If an employee who receives a fixed salary but receives an irregular or variable supplemental salary, i.e., because of overtime, received 3 or more times in November of the previous year, these amounts are included in the calculation during the period from April (May CDS) or from May to October (November CDS). In this way, the concepts are added and divided by 6.

To calculate the amount, you need to take into account the monthly salary received by the worker, and then add 1/6 to the bonus (divide the bonus by six). The total is divided by 360 and then multiplied by the number of days worked (for the entire semester, that would be 180 days).

Who gets CTS in Peru?

• All employees of the private sector who work for at least four hours every day.
• Employees of small businesses who receive 15 per diems for a full year of service. Maximum daily wage is 90.
• In case of agricultural workers, CTS is included in daily wages at the rate of 9.72% of basic pay. However, as in the general labor regime, the employee can claim payment on a differentiated and half-yearly basis.
• Recently domestic workers have also been added. They should be paid CTS wages under the same conditions as the general labor regime.

What happens if the company does not pay CTS?

National Supervision of Labor Supervision (Sunafil) If the workers do not deposit the CTS by the date of establishment, it is considered a serious offense for which they may be sanctioned as follows:

• Small Company: Fines range from 0.45 to 4.50 tax units (UIT), between S/2,070 and S/20,700.
• Non-MIB Institutions: Monetary penalties range from 1.57 to 26.12 UIT, which equates to amounts between S/7,222 and S/120,152.

What is CTS?

CTS, also known as Compensation for Service Time, is an established employment benefit in our country. Here a savings fund is opened where the employers have to deposit in the bank account in the name of their workers so that they can ensure their economic stability even if they are unemployed or in other cases.