Hire employees and contractors in Peru

Remote’s guide to employing in Peru.

  • Capital city

    Lima

  • Currency

    Peruvian sol
    (S/., PEN)

  • Population size

    32,824,358
    (est. 2020)

  • Languages spoken

    Spanish, Quechua, Aymara

Facts & Stats

The Republic of Peru (Republic del Peru) is a South American country with over 5,000 years of recorded civilization, boasting among others a megadiverse cultural and biological heritage, Machu Picchu, and the ever-cryptic Nazca Lines.

Peru is a burgeoning economy with an upper middle-income level, an average human development ranking, and one of South America’s fastest growing economies.

  • Capital city

    Lima

  • Currency

    Peruvian sol
    (S/., PEN)

  • Languages spoken

    Spanish, Quechua, Aymara

  • Population size

    32,824,358 (est. 2020)

  • Ease of doing business

    Easy

  • Cost of living index

    36.26 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    18%

  • GDP - real growth rate

    2.2 (2019)

Grow your team in Peru with Remote

To employ in Peru, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Peru can get complicated, especially without established local relationships.

Remote’s global employment solution makes it easy for your company to employ workers in Peru quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

Employing in Peru

Peruvian legislation spells out provisions for employee protections and workers’ right applicable to Peru’s workforce of 16.1 million. These provisions are spelled out across the 1993 Constitution, the 2002 ratification of the labor code, and a number of international labor statutes Peru is signatory to.

Employees in Peru enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Peru.

Public holidays

Date
Holiday Name
Extra information
Saturday, January 1, 2022New Year
Thursday, April 14, 2022Maundy ThursdayVary every year
Friday, April 15, 2022Good FridayVary every year
Sunday, May 1, 2022Labor Day
Wednesday, June 29, 2022Saint Peter and Saint Paul
Thursday, July 28, 2022Independence DayIt is related to the "Fiestas Patrias Payment" - 13rd salary payment
Friday, July 29, 2022Independence Day HolidayIt is related to the "Fiestas Patrias Payment" - 13rd salary payment
Tuesday, August 30, 2022Santa Rosa de Lima
Saturday, October 8, 2022Combat of Angamos
Tuesday, November 1, 2022All Saints' Day
Thursday, December 8, 2022Immaculate Conception
Sunday, December 25, 2022Christmas

Minimum Wage

The Peruvian minimum wage is fixed at 930 PEN per month, equivalent to roughly $233.84 per month.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in Peru fast. The minimum onboarding time we need is only 20 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

Competitive benefits package in Peru

Remote can help you provide a competitive and compliant benefits package for your employees in Peru. If you have questions or would like to offer a custom benefit, let us know and we can help.

  • Medical insurance plan
  • Dental insurance plan
  • Vision insurance plan
  • Additional paid holidays
  • Flexible work schedule
  • Pension scheme
  • Life insurance
  • Other insurance

Taxes in Peru

Learn how employment taxes affect your payroll and your employees’ paychecks in Peru.

  • Employer

    • 9% - Health insurance

  • Employee

    • 13% - Pension Fund

  • Personal income tax rates

    • 1 Tax Unit (UIT) = 4,400 Peruvian soles (PEN)

    • 8% - Up to 5 UIT

    • 14% - From 5 UIT to 20 UIT

    • 17% - From 20 UIT to 35 UIT

    • 20% - From 35 UIT to 45 UIT

    • 30% - More than 45 UIT

Types of leave

Paid time off

Employees are entitled to 30 days of paid time off annually. At least 15 days off must be taken each year and payment can be made in lieu of any unused vacation.

Public holidays

There are 12 public holidays every year.

Sick leave

Employees are entitled to 20 days of paid sick leave, compensated by the employer at a rate equivalent to the employee’s full wages. Starting the 21st day, ailing employees can draw sickness benefits from ESSALUD (Seguro Social de Salud del Peru) the Peruvian social security agency, for the next 11 months, for each instance of illness.

Maternity leave

Female employees are entitled to 98 days of fully paid maternity leave, split 49 days before and after delivery. Maternity benefits, which are equivalent to the mother’s full wages, are disbursed by the social security agency.

Paternity/Parental leave

Fathers are entitled to 10 consecutive days of paid paternity leave for natural births by their partners, and up to 30 days in case of multiple births, delivery complications, illness, or disability of the mother.

Other leave

  • Adoption leave: Adoptive parents are eligible for 30 days of paid leave, for each child adopted below the age of 12.
  • Hospitalization leave: Employees can take up to seven days off to cater to ailing or injured 1st-degree relatives.
  • Civil duty leave: Firefighters and military personnel can take paid leave from work if they’re called up for service.
  • Leave for breastfeeding: The working mother, at the end of the postnatal period, is entitled to 1 hour a day of breastfeeding leave, until her child is one-year-old. In the case of multiple births, the breastfeeding leave will be increased by an additional 1 hour a day.

Employment termination

Termination process

Panamanian labor law stipulates that employees can only be terminated when a just cause is provided by the employer. Otherwise, employees who’re let go without any justification are entitled to a severance package of up to 12 months’ pay.

Notice period

Employers are required to provide from six to 30 days’ notice so employees can tender a defense in case they’re dismissed unfairly. Employees who’re let go on a justified basis are not entitled to any prior notice.

Severance pay

Employees are only entitled to severance payments when a termination decision is due to redundancy. Workers who’re dismissed without just cause are entitled to a month’s pay for every year served with an employer, capped at 12 months’ wages.

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