- What Is CTS?
To begin, let’s define what CTS is. Compensation for Time of Service (CTS) is the deposit that must be made by the employer in favor of its workers for the time they have served their company.
This deposit is made twice in the year, in May and November.
- Why Do They Deposit The CTS?
The purpose is that we have economic support or unemployment insurance in case of losing our current jobs.
- Where Do They Deposit It?
You decide in which entity you want your CTS deposited. You can choose between: banks, rural savings banks, municipal savings banks or any financial institution, and if at some time you want to change entity, you can do it without any problem.
When making the decision, you must consider several factors, such as the Annual Effective Rate (TREA), which tells you the amount you earn per deposit, so you can choose the one that makes you pay more money in time; Also, take into account that many entities offer promotions and higher rates when adding your CTS account with your Salary Account of the same institution, and offer you the possibility of accessing other financial products, be it a mortgage loan, credit cards, credit, personal loans, among others.
- Can I Have My CTS?
As we already mentioned, the purpose of having this deposit is to have economic support before the loss of our employment. The current standard on the CTS allows having the surplus of four gross remunerations that are deposited in our account of a deposit of CTS.
- Who Should Receive It?
All workers who work at least 4 hours a day in a company that belongs to the labor regime of private activity.