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
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 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 in Peru: Take the Tour
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
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
Remote 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
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