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Remote’s guide to employing in

Peru
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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

Services available in this country:
Employer of Record ProductContractor Management

Facts & Stats

Peru Map Illustration
  • 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

Looking to employ workers in Peru? Companies hiring in Peru must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Peru on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Peru team. You can also pay contractors now in Peru with Remote in some currencies (talk to an expert now for full 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 1,025 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 7 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

Jan
Monday, January 1, 20241New Year's Day (Año Nuevo)
Mar
Thursday, March 28, 20242Maundy Thursday (Jueves Santo)
Friday, March 29, 20243Good Friday (Viernes Santo)
May
Wednesday, May 1, 20244Labor Day (Día del Trabajo)
Jun
Friday, June 7, 20245Arica's Battle and Flag Day (Batalla de Arica y Día de la Bandera)
Saturday, June 29, 20246Feast of Saints Peter and Paul (Fiesta de San Pedro y San Pablo)
Jul
Tuesday, July 23, 20247Peruvian Air Force Day (Día de la Fuerza Aérea del Perú)
Sunday, July 28, 20248Independence Day (Día de la Independencia)
Monday, July 29, 20249Independence Day (Día de la Independencia)
Aug
Tuesday, August 6, 202410Junin Battle (Batalla de Junín)
Friday, August 30, 202411Santa Rosa de Lima (Santa Rosa de Lima markanxa)
Oct
Tuesday, October 8, 202412Battle of Angamos (Angamos markan chʼaxwäwipa)
Nov
Friday, November 1, 202413All Saints' Day (Taqi Santonakan Urupa)
Dec
Sunday, December 8, 202414Feast of the Immaculate Conception (Fiesta de la Inmaculada Concepción ukax mä jach’a phunchhäwiwa)
Monday, December 9, 202415Ayacucho Battle (Batalla de Ayacucho)
Wednesday, December 25, 202416Christmas Day (Navidad urunxa)

Want to see and manage all holidays? Sign up for our free HRIS!

Effortless HR in Peru: Take the Tour

Seamlessly Manage Your Workforce, from First Hire to Final Paycheck

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

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.

Taxes in Peru

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

  • 9%

    Health insurance

Types of leave

In Peru, employees are entitled to 30 days of paid vacation annually. A minimum of 15 days is mandatory, and the remaining 15 can be converted into a monetary payout. The government allows advanced vacation days based on work duration. While the original policy required taking the full 30 days consecutively, employees can now request to split the leave. The initial 15 days, which include weekends and holidays, must be taken consecutively, while the second block of 15 days can be divided with a minimum of 1 day, determined through a written agreement or employer decision if needed.

Employment termination

Termination process

Peruvian 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.

Fair Pricing in Peru

Employer of Record

Hire and pay your global team

Starting at $599/month

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localized benefits

Contractor Management

Compliantly onboard and pay contractors

$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localized contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

$50

per employee/month

Top features

  • Reduce costs by centralizing payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labor authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
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Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app