Peru
Make employment in Peru easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Peru, all in one easy-to-use platform.
- Capital City
Lima
- Currency
Peruvian sol (S/., PEN)
- Languages
Spanish, Quechua, and Aymara
- Population size
32,824,358
Facts & Stats
- Capital City
Lima
- Currency
Peruvian sol (S/., PEN)
- Languages
Spanish, Quechua, and Aymara
- Population size
32,824,358
- 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)
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.
Grow your team in Peru with Remote
Want to employ workers in Peru? Companies hiring in Peru are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Peru and keep you compliant. Remote can hire, onboard, and pay your Peru team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Peru. now to get started or talk to an expert for more details.
Risks of misclassification
Peru, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Peru may lead to fines and penalties for the offending company.
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.
Minimum Wage
The Peruvian minimum wage is fixed at 1,130 PEN per month, equivalent to roughly $302 per month.
13th and 14th Salary
Peruvian employees are entitled to two additional salary payments known as the 13th and 14th Salary. These are paid in two installments and both are equivalent to a monthly remuneration:
13th Salary: in the first fortnight of July (for Independence Day, "Gratificacion de Fiestas Patrias”)
14th Salary: in December (for Christmas, "Navidad”)
Employees who have less than six months of services receive the payment prorated as per the months worked. Each of these bonuses is equivalent to an additional salary if the entire semester is worked, which is understood from January to June (National Holidays bonus), and from July to December (Christmas Bonus).
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 5 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.
16 Public holidays
Want to see and manage all holidays? Sign up for our free HRIS!
Effortless HR Peru: Take the Tour
Competitive benefits package in Peru
At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and your company has the localized expertise needed to attract and keep the best global talent.
Our benefits packages in Peru are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Local market insights
Statutory Benefits
13th and 14th salary payments
Peruvian employees are entitled to two additional salary payments known as the 13th and 14th Salary. These are paid in two installments.
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.
Fair Pricing in Peru
Employer of Record
$599
per employee/month
Top features
Hire without opening a local entity
Guided onboarding
Local payroll paid on time, every time
Built-in security and compliance
Flexible, localized benefits
Offer equity incentives with tax assistance
Dedicated experts for local support
Contractor Management
$29
per contractor/month
Top features
Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Payroll
$29
per employee/month
Top features
Powerful, transparent international payroll
Simple self-service platform
Personalized support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated payroll, expense management, and HRIS solution
Top features
Guided onboarding and offboarding
Employee profile and document management
Contract templates and e-signing
Time off and time tracking
Expense management
Employee and manager self-serve experiencea
Mobile app