Employ in Peru with ease.

Remote makes employment in Peru easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence.

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  • Availability

    Remote-Owned Local Entity

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

  • Capital city

    Lima

  • Currency

    Peruvian sol
    (S/., PEN)

  • Languages spoken

    Spanish, Quechua, Aymara

  • Services available

    Services available:

    • Employer of Record
    • Contractor Management

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

Below are national public holidays applicable for all regions in this country. Remote customers have access to a detailed list of regional public holidays within the Remote platform. Sign up now to access all public holiday information.

Minimum Wage

The Peruvian minimum wage is fixed at 1,025 PEN per month, equivalent to roughly $275.30 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 10 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

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Peru are tailored to fulfill the local needs of your 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

Statutory Benefits

  • 13th salary payment
    Peru has a 13th month salary payment which is paid in two instalments; 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.

Calculate the cost to hire an employee
in Peru

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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