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Peru: 100% withdrawal of CTS has been authorized

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In brief

Law No. 32027 and Supreme Decree No. 003-2024-TR, published during the last month, have authorized employees to withdraw 100% of their Compensation for Length of Service (CTS) until 31 December 2024.

The CTS is a social benefit that consists of a semi-annual deposit to be made by the employer in a special bank account. In the original design of the benefit, the employee should not be able to use this money until the employment relationship ends. The purpose of this is to provide the employee with a fund to cover his or her expenses during the transition period between jobs. However, the Government has been authorizing the free disposal of these deposits to support employees to cover their basic needs during the current economic crisis.

The employees will be able to use their CTS in the following ways:

  1. Make the withdrawal, in whole or in part, of the amount available in their CTS deposit account; or,
  2. Request that the financial entity make a wire transfer to the employee’s savings account.

The financial institution will have up to two working days to make the disbursement.

Employees may opt for any of the options to use their CTS until December 31, 2024.

If you would like more information about these services, please do not hesitate to contact us.

Spanish version

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Luis Miguel has a solid background in labor law, law of labor proceeding, social security, immigration, constitutional law and arbitration. He has an extensive experience advising on labor, pensions and immigration matters.He has participated as attorney in labor and constitutional processes, as well as administrative procedures and arbitration supporting private and public entities.

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Monica Pizzaro is a lawyer with experience in advising on labor, pension and social security law to public and private companies and state institutions, as well as in sponsorship in judicial processes. She has been a consultant for the Gender and Employment Program of the International Labor Organization (ILO) and the Academy of the Magistracy, as well as undergraduate and postgraduate teaching at various universities. She is president of the Peruvian Society of Labor and Social Security Law.

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Karen focuses on labor law, safety and health at work, labor litigation, administrative procedures and immigration law. She has extensive experience in matters related to the implementation and compliance of health and safety at work systems; as well as assisting clients concerning the application of local labor standards.

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Elizabeth Zamudio has extensive experience in providing legal labor advice to significant companies within the national and international market, providing individual and collective consultancy in labor law, legal assistance in judicial claims and administrative proceedings at the Labor and Migratory Authority.

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