Currently, compensation for time of service (cts) is a benefit given to workers of peru, because it is prescribed in national law. This bonus, which is given to employees twice a year, is intended to help those who are unemployed. Although there are a few weeks left for the respective deposits, below we explain how to calculate this amount.
When will you submit CTS 2024?
Below, we present the two dates on which companies are required to submit CTS and these are:
- During the first 15 days of May (maximum up to 15 May).
- During the first 15 days of November (maximum up to 15 November).
How to Calculate CTS 2024 Payment?
According to information from Mauricio Matos, associate partner of EY Peru’s labor sector for the Andina agency, he explained how the CTS is calculated as follows:
- For an employee who receives fixed or variable main salary, the CTS will be the result of the average salary received by the employee over the six months covering each period. Therefore, salaries are averaged from November to April (May CTS) or May to October (November CTS).
- The employee who receives a fixed salary but has indefinite or variable supplementary remuneration, that is, he has overtime, so these amounts will be included in the calculation as long as they are paid 3 or more times in the November period of the previous year Must have been received in the period from April to May (May CTS) or May to October (November CTS). Thus, the concepts are added and divided by 6.
It is important to mention that, to calculate the amount, you need to take into account the monthly salary the employee receives, then add 1/6 of the bonus (dividing the bonus by six). The total is divided by 360 and then multiplied by the days worked (for the entire semester, this will be 180 days).
Who gets CTS in Peru?
- All private government employees who work at least four hours a day.
- Employees of small businesses who receive 15 per diem payments for a full year of service. The maximum daily wage is Rs 90.
- In case of agricultural workers, CTS is included in the daily remuneration at the rate of 9.72% of the basic pay. However, the employee can request payment in a differentiated and semi-annual manner, as in the normal labor arrangement.
- Domestic workers have been included recently. They should be paid CTS under the same conditions as normal labor arrangements.
What happens if the company does not pay CTS?
National Superintendent of Labor Supervision (Sunafil) informed the workers that if they do not deposit CTS within the prescribed date, it is considered a serious offense for which they may get sanctioned as follows:
- small company: The fine ranges from 0.45 to 4.50 tax units (UIT), between S/2,070 and S/20,700.
- Non-MIP Companies: Monetary penalties range from 1.57 to 26.12 UIT, equivalent to an amount between S/7,222 and S/120,152.
What is CTS?
CTS, also known as Compensation for Time of Service, is a work benefit that is established in our country. Here a savings fund is opened where employers have to deposit it in a bank account in the name of their workers to ensure their economic stability even if they are out of work or in other cases.