COVID-19 G2P : Cash-Transfer Payments - Country Brief : Peru

Overview & Synopsis

Since its creation in 2011, the Ministry of Development and Social Inclusion (MIDIS) has been the governing body of social protection in Peru, with responsibility for the three largest conditional transfer programs. The largest program, JUNTOS, reaches around 724,000 households in poverty and vulnerable conditions, providing a bi-monthly transfer of approximately 57 dollars. Over 80 percent of JUNTOS beneficiaries receive the cash transfer in their Banco de la Nacion (BN) savings account. JUNTOS beneficiaries receiving account-based transfers all own a debit card, which can be used at BN ATMs and BN banking agents. Peru declared a State of Emergency on March 16th, 2020, initiating a 14-day quarantine period and taking different measures to resolve the health response and, in turn, reduce the impact on the economy, especially in the vulnerable households. Other measures have been adopted as part of the State of National Emergency. An exceptional withdrawal of funds in the Private Pension System has been declared. Employees with suspension of work and those who have not contributed over the past 6 consecutive months are allowed to withdraw their funds up to 567 dollars, in 2 periods. In addition, the government has authorized the withdrawal of up to 680 dollars from the CTS accounts (Compensacion por Tiempo de Servicios), which is a fund to protect the employee when they are unemployed. For dependent employees who earn up to 425 dollars monthly, they will receive a subsidy equivalent to 35 percent of their salaries. Finally, the government has approved a subsidy of 215 dollars targeting 1 million households in a vulnerable situation and living in rural areas.