CTS 2022: Employee benefits expire today, what should you know?

workers from the private sector will receive additional money in their hands in the next few days with the payment of CTS.

It is estimated that around S$2,800 million will be paid out to approximately $4.3 million by CTS this month, according to financial system executives. workers on the payroll

The total amount to be deposited over the next few hours will be more than the amount provided in May, given the slight increase in formal jobs.

When will it be paid?

The deadline for paying this benefit is next Tuesday, November 15, and it is delivered to those employees who worked in the same company from May to October.

The payment is made to those employees who have worked on payroll for at least one full month and at least four hours a day.

How much will they pay you?

November CTS is equal to one full salary plus one sixth of your July bonus.

For example, if you salary without discounts it’s S/1500, probably your last “free” was around S/1600. One sixth of your reward will be
more than S/250.

To calculate your yearly CTS, you must add your gross salary plus this 1/6th of the bonus, so in this case the CTS would be S/1750.

Given that payment CTS is issued twice a year, in May and November, the payment for that month is equal to the amount divided by two, in this example it will be S/875.

If you have not worked for the same company in the last six months, then the amount received must be divided by 360 and multiplied by the days worked, in this case 6 months, which is equivalent to 180 effective days.

Can I revoke the STS?

Remember, with Law #31480 in effect since May, workers can withdraw 100% of their CTS.

The law allows employees to use all deposits to compensate for the time of work performed in financial institutions and that they have accrued at the disposal date through December 2023.

Also, Law No. 30334 continues to be in force, according to which employees can deduct an excess of four salaries from their PTS.

What to do with CTS?

withdrawal of STS, which will be included until December 2023, may be implemented in whole or in part. Here are some ideas for using CTS:

1. Cancel or mitigate your debts

“Determine what your current financial situation is and make sure you match the loans and pending payments you have so that this is the first thing you prioritize,” recommends information company Experian.

2. Save

One option for this deposit is to use it as a savings fund for unexpected events or add it to your planned savings.

“In this sense, it is important to have specific savings goals in the short and long term, to build a monthly budget that will help you visualize the amount you have monthly in order to avoid overspending and stay motivated in the short and long term. long term,” they add.

3. Invest in your growth

Another idea to use your CTS is to invest in professional training or a business that will allow you to increase your income.

“Before you do this, analyze and research in detail the sector you would like to start in and check if you have a chance to be sustainable over time so that you may even see positive results for your funds in the long run. “, they suggest.

Keep in mind that you can also choose a financial institution to complete your CTS by checking the annual effective rate of return (TREA) and making sure that the institution you choose has a Deposit Insurance Fund.