Remote’s guide to employing in

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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.

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  • Capital city


  • Currency

    Peruvian sol (S/., PEN)

  • Languages

    Spanish, Quechua, and Aymara

  • Population size


Services available in this country:
Global Employment ServicesContractor Management

Facts & Stats

Peru Map Illustration
  • Capital city


  • Currency

    Peruvian sol (S/., PEN)

  • Languages

    Spanish, Quechua, and Aymara

  • Population size


  • Ease of doing business


  • Cost of living index

    36.26 (2021)

  • Payroll frequency


  • VAT - standard rate


  • 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.

14 Public holidays

Sunday, January 1, 20231New Year's Eve (Año Nuevo)
Thursday, April 6, 20232Maundy Thursday (Jueves Santo)
Friday, April 7, 20233Good Friday (Viernes Santo)
Sunday, April 9, 20234Easter Sunday (Domingo de Resurrección)
Monday, May 1, 20235Labor Day (Día del Trabajo)
Thursday, June 29, 20236Saint Peter and Saint Paul (San Pedro y San Pablo)
Friday, July 28, 20237Independence Day (Fiestas Patrias)
Saturday, July 29, 20238Independence Day (Fiestas Patrias)
Wednesday, August 30, 20239Santa Rosa de Lima
Sunday, October 8, 202310Battle of Angamos (Combate de Angamos)
Wednesday, November 1, 202311All Saints Day (Todos los Santos)
Friday, December 8, 202312Immaculate Day (Inmaculada Concepción)
Saturday, December 9, 202313Battle of Ayacucho (Batalla de Ayacucho)
Monday, December 25, 202314Christmas Day (Navidad del Señor)

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 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.

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

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.

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.