Possible release of CTS until 2025: Debate in the Congress of Peru

The possible release of the Compensation for Length of Service (CTS) until the year 2025 is once again a topic of debate in the Congress of the Republic of Peru. Various legislative proposals seek to allow workers to access these accumulated funds for retirement purposes, with the aim of mitigating the negative impact caused by the health crisis that began in 2020. Bill 7010, presented by Congressman Raúl Doroteo of the Popular Action party (AP), aims to authorize workers to access 100% of their CTS until December 31, 2024. On the other hand, Congressman Segundo Montalvo of Peru Libre has proposed a similar initiative that would extend this exceptional withdrawal possibility until the end of 2025. Both proposals are currently in the Congress Committee on Labor and Social Security, chaired by Pasión Dávila, who will be responsible for evaluating and deciding on the feasibility of these initiatives. The objective of these projects is to allow workers to access their CTS funds to cover economic needs caused by the slowdown and economic recession affecting the country. CTS in Peru was established to provide economic protection to workers in case of contingencies such as unemployment or job termination. Employers are required to make semi-annual deposits of this benefit, and workers can choose the financial institution where they want these deposits to be made. If any of these bills are approved, millions of Peruvian workers could benefit from this release of CTS. Employers would have established deadlines to make the corresponding deposits for each worker, which could provide economic relief for many families amidst the current crisis. The final decision on the release of CTS until 2025 will be in the hands of the Congress of the Republic, which will need to evaluate the benefits and possible impacts of these proposals before their final approval.