100% CTS Withdrawal: You can access your money on any date | Answers

With 95 votes in favor, nine votes against, and one abstention, the plenary session of Congress on May 2 approved a proposal to empower workers to freely dispose of 100% of compensation for hours of service (CTS) till December 31, 2024. Now, a new question arises: When will the funds be available? In the following note we will tell you what you need to know.

  • AFP-2024 Withdrawal Schedule: When it is paid by DNI Number, Beneficiaries, etc.

When will CTS be available?

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.

The Executive Officer can approve the provisions of the Act within a maximum period of 10 calendar days from its coming into force. Workers will be able to access their CTS funds only after the regulation is issued. In 2022, free withdrawal of CTS was approved and postponed till December 31, 2023. For this to happen, a month elapses between Congressional approval and promulgation of regulations. If this situation repeats itself, the workers will be able to receive their funds from the first week of June.

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.
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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 a full 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 wages on a different and semi-annual 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.

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