<img alt="" src="https://secure.intelligentcloudforesight.com/779425.png" style="display:none;">
Skip to content

Hiring in Peru

Hiring employees compliantly in Peru means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Peru so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Peru; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Need assistance hiring in Peru? Contact us about our International EOR Service

Labor Laws in Peru

Employment laws in Peru are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Peru employment laws and Peru policies here.

Employee Probation Period

  • According to law, the standard probationary period is three months. 
  • However, if the duties require a special period of training or the employee has a trustworthy position, the parties could agree to extend the probationary period up to six months, or up to one year if the employee has a managerial position.

Annual Leave in Peru

  • Employees in the private sector are entitled to receive 30 paid time-off days per year (calendar days rather than working days).
New call-to-action

Holidays in Peru

New Year’s Day 1st January
Maundy Thursday 9th April
Good Friday 10th April
Easter Sunday 12th April
Labor Day 1st May
Feast of Saints Peter and Paul 29th June
Peru Independence Day 28th July
Great Military Parade of Peru  29th July
Feast of Saint Rose of Lima 30th August
Angamos Battle Celebration 8th October
Reformation Day 31st October
All Saints' Day 1st November
Feast of the Immaculate Conception 8th December
Christmas Day 25th December

 

Onboard employees in days, anywhere in the world

Maternity Leave Peru

  • Female employees are entitled to 98 days of paid maternity leave; 49 days before the birth of the child and 49 days following the delivery.
  • In the event of multiple or complicated births, the leave can be extended by 30 days

Paternity Leave Peru

  • Fathers are entitled to 10 consecutive days of paid paternity leave.
  • The following provisions are also found in the law:
    • 20 consecutive calendar days for premature and multiple births
    • 30 consecutive calendar days for birth with terminal congenital disease or severe disability
    • 30 consecutive calendar days due to serious complications in mother’s health

Sick Leave in Peru

  • An employee is entitled to 20 days of paid sick leave.
  • If sickness continues after 120 days then the employee has to apply for the subsidy to be granted for the duration of the worker's disability, to a maximum of 11 months and 10 days.

Working Hours in Peru

  • The standard workweek is eight hours per day with a maximum of 48 hours per week.

Overtime in Peru

  • The first two hours of overtime must be at least 25% of the employee’s total remuneration. For every hour afterward, the surcharge cannot be less than 35% an hour.
  • The amount of overtime hours an employee can work is unlimited

Termination of Employment in Peru

Peru's labor laws provide several reasons for which an employer may terminate an employment contract on objective grounds, including:  

    • the employee's resignation with thirty days' notice
    • the completion of the task or service
    • the satisfaction of a condition leading to the termination of the contract
    • the expiration of the contract's termination
    • mutual agreement; a worker's permanent total disability
    • the termination of employment on objective grounds, such as an unforeseen event (ex: a natural disaster or an employer's bankruptcy). 
  • A worker whose employment is terminated for objective grounds is entitled to:  1) compensation based upon his or her length of service; and 2) preference for reinstatement.

Notice Period in Peru

  • In general, employees should get at least six calendar days of written notice so that the employee can respond in writing with a defense, or 30 calendar days to prove his/her capability.

Severance in Peru

  • A worker is entitled to severance pay which is provided as compensation when a worker is arbitrarily dismissed, without following the procedures.
  • In that case, an employee is entitled to one month's pay for one year of service up to a maximum of 12 monthly salaries.

Peru Salary and Wages

Start your Global Expansion

13th / 14th Month Salary in Peru

  • Yes (Mandatory)
  • There is a statutory requirement to pay the 13th and 14th month.
  • The 13th month is paid in December and the 14th month in June.
New call-to-action

Income Tax in Peru

  • Individuals resident in Peru are taxed on their worldwide income. Nonresidents are taxed on their Peruvian source income only.
  • In general, remaining more than 183 days in Peru results in residency and remaining 183 days abroad loses it.
  • Tax is imposed on all remuneration received by an employee in the form of salaries, bonuses, living and housing allowances, tax reimbursements, benefits in kind and any other fringe benefits.
  • Salaries and remuneration received by nonresidents for services provided in Peru are taxed at a flat rate of 30%.
  • For resident employees, the tax rates are applied on a progressive scale expressed in ATUs, as set forth in the table below. 
  • ATUs are established by the government at the beginning of each year. 
  • The following are the tax rates.

Taxable income

Rate on Excess

Exceeding (ATU)

Not Exceeding (ATU)

0

5

8

5

20

14

20

35

17

35

45

20

45

-

30

Tap the world's talent pool

Social Security in Peru

  • Employees must contribute 13% of their salaries and wages to the government-sponsored pension fund (Oficina de Normalizacion Previsional, or ONP). 
  • Under an alternative system, employees must contribute approximately 12% of their salaries and wages to the Private Pension Funds Trustee (Administradora de Fondo de Pensiones, or AFP). 
  • These amounts must be withheld by employers under both the ONP and AFP systems.
  • Employers must contribute to the Health Care Fund (HCF) at a rate of 9%. 
  • Following the procedure established by law, employers can hire private health providers (Spanish acronym EPS). 
  • This allows them to use a credit of up to 25% of the HCF contribution, subject to certain limits.
  • The health care system provides the employee with medical attention and subsidies in case of disability.

Contribution

Group 1083

Government Pension Fund

Private Pension Funds Trustee Health Care Fund

Employee

Group 1083

13%

12%  

Employer

Group 1083

   

9%

Immigration Peru

  • Domestic and foreign companies established in Peru may employ foreign nationals up to a maximum of 20% of the total personnel of a company. 
  • Salaries paid to foreign nationals may not exceed 30% of the total payroll.
  • Specialists or management personnel of a new industry may be exempt from these limits, among others.
  • The following individuals are not considered foreign nationals for purposes of hiring foreign personnel: 
    • Foreigners with Peruvian spouses, ascendants, descendants or siblings
    • Foreigners who have immigrant visas 
    • Foreigners whose country of origin has a treaty of labor reciprocity or a treaty of double nationality with Peru 
    • Personnel from foreign transport enterprises that operate under a foreign flag 
    • Personnel from foreign enterprises or multinational banks that have a special regulation 
    • Foreign personnel under bilateral or multilateral agreements honored by the Peruvian government who render services in the country 
    • Foreign investors, regardless of whether they have waived the right to repatriate capital investments or profits, if an investment of no less than PEN500,000 (approximately USD156,000) is maintained throughout the term of their contracts 
    • Artists, athletes and, in general, those who work in public events in the country for a maximum of three months during a calendar year
  • Documents that must be submitted to obtain a work visa include the following: 
    • An application addressed to the Ministry of Labor 
    • Affidavit of limiting percentages subscribed by the employer, attesting that the employment agreement complies with the limits set under the law for hiring foreign personnel (other documents may apply with respect to employees exempt from these limits)
    • Employment agreement with all of the mandatory clauses for a term of one year or more (limit of three years)
    • Affidavit stating that the expatriate is qualified to perform the service; a copy of his or her professional degree, technical study or work certificates must be in his or her personal file 
    • Copy of the passport or the foreign card (the passport must have a minimum validity of six months at the moment of the visa application) 
    • Copy of the company’s tax registration 
    • Receipt for payment 
    • Document issued by the Peruvian Public Registry proving that the Peruvian legal representative of the company is authorized to submit work contracts
  • This visa can be granted as a temporary or resident visa, depending on the term of the work contract with the Peruvian company.
  • The Peruvian immigration office approves resident work visas in approximately 60 working days. 
  • This visa can be granted temporary or resident and can be renewed. 
  • Temporary visas have a maximum duration of one year, while resident visas can be renewed annually with no limit.
  • Foreign nationals holding the following visa status may receive residence visas: 
    • Employees who have a work contract with a Peruvian entity for a term of one to three years and foreign nationals who enter Peru to carry out activities related to their own profession may obtain a work visa. 
      • This visa can be granted for one year and is renewable annually for up to one year. 
    • Foreign nationals who are sent to work in Peru by their foreign company employers to perform agreed services may obtain an assignment work visa. 
      • The service agreement and assignment letter must be for one year. 
      • This visa can be granted for one year and is renewable for up to one year. 
  • Diplomatic, consular and official visa holders may obtain residence visas valid for a specific period established by the Ministry of Foreign Affairs. 
  • Religious, student and work visa holders may obtain residence visas valid for up to one year, which are renewable. 
    • In these cases, a document that supports the residence must exist. 
    • For example, for work visas, a work contract for a period of one year is required for an employee. 
    • If the term of the contract is less than one year, a temporary visa applies. 
  • Immigrants (now called permanent residents) may obtain residence visas with an undetermined time period.
Need assistance hiring in Peru? Contact us about our International EOR Service

Type of Visa/Permit

Documentation

Validity

Eligibility

Temporary Worker Visa
  • Application form
  • Affidavit of limiting percentages subscribed by the employer, attesting that the employment agreement complies with the limits set under the law for hiring foreign personnel 
  • Employment agreement
  • Affidavit stating that the expatriate is qualified to perform the service; a copy of his or her professional degree, technical study or work certificates must be in his or her personal file 
  • Copy of the passport or the foreign card 
  • Copy of the company’s tax registration
  • Receipt for payment
  • Document issued by the Peruvian Public Registry proving that the Peruvian legal representative of the company is authorized to submit work contracts
1 year maximum
  • For short-term assignments (1 or 2 months), for example, "technical activities," it is mandatory to obtain a temporary worker visa or temporary appointed worker visa, depending on the type of activities that the foreign citizen will perform in Peru
Resident Visa
  • Application form
  • Affidavit of limiting percentages subscribed by the employer, attesting that the employment agreement complies with the limits set under the law for hiring foreign personnel 
  • Employment agreement
  • Affidavit stating that the expatriate is qualified to perform the service; a copy of his or her professional degree, technical study or work certificates must be in his or her personal file 
  • Copy of the passport or the foreign card 
  • Copy of the company’s tax registration
  • Receipt for payment 
  • Document issued by the Peruvian Public Registry proving that the Peruvian legal representative of the company is authorized to submit work contracts
1 year (can be renewed annually)
  • Employees who have a work contract with a Peruvian entity for a term of one to three years and foreign nationals who enter Peru to carry out activities related to their own profession may obtain a work visa.
Onboard employees in days, anywhere in the world

Value Added Tax (VAT) in Peru

  • The standard VAT rate for Peru is 18%, which is made up of 16% VAT plus a municipal tax (Impuesto de Promoción Municipal) of 2%. Exports are subject to a nil VAT rate.
  • Exempt supplies include: agriculture; education; basic foodstuffs; low-value new residential buildings; financial services; public transport; public post; international freight transport; livestock; gambling; and live events.
  • Certain supplies are liable to withholding VAT, ‘SPOT’, of 4%, 10% or 12%.

VAT

Standard Rate

Group 1083

18%

Exempt Rate Group 1083 12%
New call-to-action

Mandatory Benefits in Peru

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, maternity leave, paternity leave, sick leave, overtime pay, notice period, severance pay, 13th month pay
  • Statutory benefits also include social security benefits
Tap the world's talent pool

Mandatory Benefits overview

  • Probationary period

  • Annual Leave

  • Public Holidays

  • Maternity Leave

  • Paternity Leave

  • Sick Leave

  • Overtime Pay

  • Notice period

  • Severance Pay

  • 13th month pay

  • Social Security Benefits

Payments And Invoicing

  • Employers must withhold income tax monthly from salaries of employees. 
  • An 8% tax must also be withheld on fees paid for independent professional services that are provided to legal entities as payment toward the professional’s annual income tax. 
  • Such professionals may avoid withholding up to PEN36,750 if they foresee that their incomes will not be higher than this amount. 
  • The tax year is the calendar year. 
  • Individual tax returns must be filed with the tax office usually in late March or by early April, and any balance due must be paid at that time. 
  • Only tax residents are subject to tax return filing obligations. 
  • Married persons are taxed separately. 
  • However, for income derived from properties held in common, they may elect to be taxed jointly.
  •  Individuals earning only employment income are not required to file tax returns, unless they want to apply the additional deduction of expenses up to 3 ATUs.

Payroll Accrual in Peru

Country Accruals Additional Information

Health contributions 9.00%
Pension Funds 13.00%
Maternity leave 90 days
Christmas Bonus 8.33%
Vacations 11.51%
Dont lose your competitive advantage

Description

Health contributions Employers are obligated to make monthly health contribution payments equal to 9% of the total compensation paid to the employee. Employees must choose affiliation with either the National Health System (EsSalud) or the Private Health System (Entidades Promotoras de Salud or EPS). 25% of the amount paid to the EPS may be used as a credit against EsSalud contributions. Pension funds contributions Employers must apply monthly withholdings for pension funds contributions equal to (i) 13% of the compensation received by the employee in cases where the employee is affiliated with the National Pension System or (ii) approximately 12.5% in cases where the employee is affiliated with the Private Pension System (in this case, 10% corresponds to their personal pension account and almost 2.5% to insurance and commissions for managing the fund). Should a foreign individual’s labour contract end and the individual leaves Peru, the pension funds deposited in the Private Pension System (the aforementioned 10%) can be transferred to their pension fund abroad or wired to an account of the employee in a foreign bank if no individual pension fund abroad is available

Payroll Accruals Additional Information

 

 

Employment Accruals

Annual Leave Employees in the private sector are entitled to receive 30 paid time-off days per year (calendar days rather than working days). This equals 8.22% (30/365 days) of annual income
Maternity Leave Female employees are generally entitled to 14 weeks of paid maternity leave, seven to be taken before the birth and seven after. This equals 26.9% (14/52 weeks) of annual income
Paternity Leave Fathers are entitled to 10 consecutive days of paid paternity leave.     This equals 2.7% (10/365 days) of annual income
Sick Leave Employees are generally entitled to at least five days of paid sick leave annually. This equals 1.37% (5/365 days) of annual income
Overtime The first two hours of overtime must be at least 25% of the employee’s total remuneration. For every hour afterward, the surcharge cannot be less than 35% an hour. Depends on the number of overtime hours worked
13th Month This is mandatory in Peru and is paid in July This equals 8.33% (1/12 months) of annual income
Social Security Employers must contribute to the Health Care Fund (HCF) at a rate of 9%. This equals 9% of annual income
Severance Employees dismissed without cause are generally entitled to severance pay for up to 12 months. This equals 100% of annual income

Accrued Benefits in Peru

Christmas Bonus %

Based on one month bonus (paid in December)

8.33%
Christmas Bonus Over Vacations %

For employees with children under 18 or children over 18 in higher ed, are entitled to 10% of monthly pay.

10%
Severance per Year%

Employees are entitled to severance pay that equals one and a half months pay after one year of service

12.5% of annual salary
Vacations %

Employees are entitled to an annual holiday of 30 days

8.24% of annual salary
Notice %

Employees are entitled to 30 days of notice period for one year of service or more

8.24%
Christmas Bonus Over Notifications%

Note: companies with more than 20 employees have to share their profits, ranging from 

 5-10% depending on the sector
Vacations Plus %

Based on one month bonus (paid on 1st July for Independence Day)

8.33%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per anum are equal to

55.64%

Why use Global Expansion to hire in Peru

Establishing a branch office or subsidiary in Peru can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Peru labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Peru law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Peru. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Peru Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

 

New call-to-action

Ready to hire anywhere in the world?

Grow your team the right way with
Global Expansion.

Request a Proposal