Grow your team in Peru with Remote
Remote currently offers contractor payment and management services in Peru. We are busy building our own entity in the country to provide you with best possible employment solutions for your employees.
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.
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.
|Date||Holiday Name||Extra information|
|New Year’s Day|
|Feast of Saints Peter and Paul|
|Peru Independence Day, Peruvian National Holidays|
|Great Military Parade of Peru|
|Feast of Saint Rose of Lima|
|Angamos Battle Celebration|
|All Saints’ Day|
|Feast of the Immaculate Conception|
The Peruvian minimum wage is fixed at 930 PEN per month, equivalent to roughly $233.84 per month.
- For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
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.
- 13th salary payment
Peru has a 13th month salary payment which is paid in two installments; in the first fortnight of July (for Independence Day) and in December (for Christmas), equivalent to a monthly remuneration.
This payment is only required for employees who are working in the month of receiving the benefit (or on vacation/leave with pay).
Employees who have less than six months of services receive this entitlement prorated as per the months worked.
- Family allowance
Employees who are responsible for one or more children under 18 years of age or of legal age attending higher education, are entitled to receive an allowance of 10% of the current minimum wage.
- Compensation for time of services (CTS)
This is equivalent to an ordinary remuneration which will be deposited by the employer in the financial institution chosen by the employee within the first fifteen calendar days of the months of May (50%) and November (50%) each year. CTS is more commonly known as a "settlement payment" or “retirement payment” in other jurisdictions.
Taxes in Peru
Learn how employment taxes affect your payroll and your employees’ paychecks in Peru.
- 9% - Health insurance
- 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
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.
There are 12 public holidays every year.
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.
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.
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.
- 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.
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.
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.
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.
Normally, probation periods can last up to three months at most. But, employers can extend probation periods for general workers for six months or an entire year for managerial staff, if the line of work in question requires sufficient time to develop the skills required to undertake it.