CTS: How to request the withdrawal of 100% of this important fund and who can access it?

Lima, May 10, 2021Updated on 05/10/2021 01:32 pm

The Peruvian Government approved – on Tuesday, May 4 – the regulatory provisions for the application of the Law that authorizes the withdrawal of 100% of the Compensation for Time of Services (CTS). This measure seeks that workers can meet their economic needs caused by the COVID-19 pandemic.

MORE INFORMATION: CTS Withdrawal: Who can access the benefit and until when is there a term?

The Law No. 31171 authorizes workers, one time only and until December 31, 2021, freely dispose of 100% of the deposits by CTS that they have accumulated in financial institutions.

Since Thursday, May 6, the entities of the financial system opened the CTS accounts for their clients to access their funds, although there are still some questions in the air. In that sense, we tell you how to request 100% withdrawal from your account and who can access this benefit.

After requesting the withdrawal, financial institutions must disburse the workers' money within a maximum period of two business days.  (Photo: GEC)
After requesting the withdrawal, financial institutions must disburse the workers’ money within a maximum period of two business days. (Photo: GEC)

MORE INFORMATION: CTS: What are the financial entities that pay the most interest per deposit?

CTS WITHDRAWAL: HOW TO REQUEST 100% WITHDRAWAL OF MY ACCOUNT AND WHO CAN ACCESS

It is worth mentioning that the CTS is a labor benefit granted by the employer to the worker who is on the payroll and is deposited twice a year: in May and November. The amount of this varies according to the employment regime of the company, which can be micro, small, medium and large companies.

After the rule came into force, some banking entities made it known through their information channels that the withdrawal or application submission process began on Thursday, May 6. Therefore, you can now access the entire Compensation for length of service.

HOW DO I WITHDRAW 100% OF MY CTS?

  • Workers They must send a request to the financial institution where they have deposited the CTS. This procedure can be done remotely or virtually.
  • The worker You can specify if you want to make a partial or total withdrawal of the money in the CTS, as well as the account in which you will want to receive the resources (whether it is in a bank, savings bank, finance company or savings and credit cooperative).
  • Once the request is received, the financial institution will have a maximum period of 2 business days to make the transfer of money to the specified account.

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According to Lima Chamber of Commerce (CCL), the total withdrawal may be made including the interest generated on the date of the withdrawal request, which may be done in person at the offices of the depositary entity.

WHO CAN WITHDRAW UP TO 100% OF THE CTS?

  • Private sector workers can withdraw 100% of the CTS, whatever their employment status. That is, payroll workers from micro, small, medium and large companies.
  • Also the workers of State companies subject to the labor regime of Legislative Decree No. 728.
  • Likewise, civil servants of public sector entities subject to the regime of Legislative Decree No. 728.

UNTIL WHEN CAN I WITHDRAW THE CTS?

The norm approved by the Congress of the Republic and promulgated by the Executive Power indicates that the maximum term to request the withdrawal of the CTS is until December 31, 2021.

As of Thursday, May 6, the entities of the financial system opened CTS accounts for their clients to access their funds.  (Photo: Andina)
As of Thursday, May 6, the entities of the financial system opened CTS accounts for their clients to access their funds. (Photo: Andina)

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