Article

CTS in Peru: What Employers Must Know

Q: What is the standard workweek in Peru?

Peruvian law sets 8 hours per day or 48 hours per week.

Q: How many vacation days do employees get?

Most employees receive 30 calendar days of paid annual leave after one year.

Q: Must employers provide health insurance?

Yes. Employers contribute 9% of payroll to EsSalud.

Q: What other mandatory benefits exist besides CTS?

Two gratificaciones (July and December). Profit sharing applies to companies with 20+ employees.

Q: How can we hire in Peru without a local entity?

Use Europortage’s EOR solution. We hire on your behalf, run payroll, and ensure compliance.

novembro 10, 2025

Doing business in Peru means understanding every detail of local payroll and labor law. One of the most important obligations for employers is the CTS — Compensación por Tiempo de Servicios or Compensation for Length of Service.

This mandatory benefit is designed to protect employees against job loss by creating a savings buffer funded by employers twice a year. The system is tightly regulated, and deadlines are strictly enforced.

For 2025, employers must make the November deposit by the 15th, covering the May–October period. Missing that deadline can trigger heavy fines and damage your company’s compliance record.

In this guide, Europortage explains everything you need to know about CTS in Peru — from eligibility and calculation to withdrawals, penalties, and compliance steps. Whether you already operate in Peru or plan to expand through an Employer of Record, this article helps you stay compliant and avoid costly mistakes.

Key Takeaways:

✔️ CTS (Compensación por Tiempo de Servicios) is a mandatory biannual deposit that protects employees against unemployment.

✔️ Payments are due twice a year — by May 15 and November 15.

What is CTS in Peru?

CTS (Compensación por Tiempo de Servicios) is a mandatory benefit in Peru. It protects workers against unemployment and termination risk. Private-sector employers must fund it twice a year. The legal deadlines are May 15 and November 15.

For the November 2025 deposit, you must cover the May–October period. CTS sits within Peru’s wider social protection system. It works like a severance savings buffer. Employees hold funds in a designated CTS account at a financial institution.

Compliance matters. Missing deposits can trigger fines and interest. SUNAFIL audits these obligations closely. Therefore, plan payroll calendars early. Validate eligibility. Then calculate and deposit on time.

Who is entitled to CTS?

Most private-sector employees qualify when they average four hours per day. However, rules vary by employer type. Here’s a quick guide:

Regular private-sector employers: One monthly salary per year, paid in two halves.
Small enterprises: 15 daily wages per full year. Capped at 90 daily wages.
Micro enterprises: CTS applies only if not registered in REMYPE.
Agricultural workers: CTS is included in the daily wage at 9.72%, unless they opt for semiannual deposits.
Domestic workers: Covered since Law 31047. Same rules as regular private employees.

Employees choose the receiving bank. If they do not choose, the employer must select one. Open a fixed-term savings account when required. Keep proof of the employee’s choice on file.

How to calculate CTS (with example)

The standard CTS equals one monthly salary per year of service. Employers split it: 50% in May and 50% in November.

Use base regular remuneration at April 30 (for May) and October 30 (for November). Then add one-sixth of the applicable semiannual bonus (gratificación from July or December).

Example:

Monthly salary: S/ 1,674
November 2025 CTS (for May–October): ~S/ 837
Note: CTS is exempt from fifth-category income tax. Always keep your working sheet. Share the breakdown with the employee.

Pro tip: Lock a monthly checklist. Confirm salary basis, seniority, vacations taken, and pending bonuses. Then compute, approve, and deposit.

Variable or mixed salaries

Many roles include commissions or overtime. In those cases, calculate CTS using the average of the last six months. For November, average May–October earnings.

If pay is fixed + variable, include the variable portion only when it was paid at least three times in the semester. Keep those proofs. Store payslips and commission reports together. Consistency avoids disputes and audit friction.

Withdrawals and exceptions

Normally, CTS funds are intangible. Employees access them after termination. However, there are temporary and humanitarian exceptions:

Law 32322: Employees may withdraw up to 100% of CTS until December 31, 2026.
Severe illness: Employees with terminal illness or cancer may withdraw anytime. Medical proof is required.

HR should document requests and approvals. Payroll should record any withdrawals and remaining balances. The bank statement is key evidence.

Penalties for late or missing deposits

SUNAFIL treats late or missing CTS as a serious violation. Fines scale by employer size and impacted headcount.

Large/Medium companies: S/ 8,399.50 to S/ 139,742.00.
Small enterprises: S/ 2,407.50 to S/ 24,075.00.

Interest accrues from the day after the legal deadline. Additionally, employers must deliver a written calculation statement. Failing to provide it may trigger extra sanctions. Therefore, keep a standard CTS letter template. Send it with proof of deposit each semester.

What periods count toward CTS?

CTS accrues from the first month of employment. Even short periods count. If someone leaves before six months, pay the accrued CTS with final benefits.

Computable periods include:

Paid vacations and authorized paid leave.
Work accidents or professional illness (up to 60 days per year).
Pre- and postnatal leave (up to 98 days).
Legal strikes declared valid.
Days under dismissal review where salary continues.

Maternity and paternity leave do not reduce CTS. They sit within computable time. Track these periods in your HRIS. Reconcile with payroll calendars before each semester close.

Ensuring compliance: your 8-point checklist

Map who is eligible this semester.
Confirm each employee’s chosen financial institution.
Validate salary basis dates (Apr 30 / Oct 30).
Average variables when applicable.
Add one-sixth of the relevant gratificación.
Deposit by May 15 and November 15.
Issue a calculation statement and proof of deposit.
Archive all records for audits.

Create calendar reminders at T-30, T-15, and T-5 days. Reconcile edge cases early. Communicate clearly with employees about their balances and rights.

How Europortage keeps you compliant in Peru

Peru’s payroll rules are precise. Timelines are strict. Documentation must align. That’s where Europortage helps. We run compliant payroll and benefits across LATAM. We also support hiring with or without a local entity.

With Europortage, you get:

Correct CTS calculations and on-time deposits.
Proper handling of gratificaciones, EsSalud, and other contributions.
Employee statements and deposit proofs, ready for audits.
Guidance on small, micro, and special regimes.
Seamless onboarding, HR support, and exits.

Want to hire in Peru without opening an entity? Use our Employer of Record model. You scale faster. You reduce risk. You stay compliant from day one.

Conclusion

CTS in Peru is central to employee protection and payroll compliance. Deadlines are fixed. Rules are detailed. Documentation is essential. Yet with strong processes, compliance is manageable.

Build a reliable semester routine. Track eligibility and computable periods. Calculate carefully. Then deposit on time and document everything. With Europortage as your LATAM payroll partner, you can focus on growth while we handle the details.