"CTS Withdrawal Options and Updates under Law 31480 in Peru: Extension until 2026 Proposed"

2023-05-19 03:22:00

The withdrawal of 100% of the Compensation for Time of Service (CTS) remains an option for workers in Peru until December 31, 2023, according to the Ley 31480but now the Popular Action bench presented a project for this benefit to be extended until 2026.

Bill 5009 was presented by Congressman Jorge Luis Flores Ancachi and states that its objective is to provide economic liquidity to citizens in order to be able to satisfy the basic economic needs of families affected by the pandemic and the sociopolitical conflicts that originated with the presidential succession in December 2022.

“One of the measures that have supported combating inflation from rising dramatically in Peru has been the issuance of this Law No. 31480, in this sense it is necessary to evaluate the extension of validity of this norm, since we know that the problem of the rise in the cost of living in Peru will last several years to lower or stabilize prices”, reads the document.

READ ALSO: Withdrawal of 100% of the CTS: know the deadlines to access the money this 2023

Likewise, the initiative indicates that the approval of the legislative proposal will cause financial entities to incur operating costs to make them effective. until December 31, 2026.

“The main cost of the measure is that those beneficiaries of the measure who withdraw the accumulated amount corresponding to the CTS, find themselves temporarily unprotected in the face of a possible situation of unemployment.”, he adds.

The legislative proposal will have to go through the evaluation of the commissions of the Congress of the Republic before its debate and vote in plenary.

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