Asia
How to hire and pay employees in Japan
Want to learn how to hire & pay employees in Japan? We can help your business expand into new markets with our Global Payroll & Employer of Record...
How to hire and pay employees in Peru
Slasify
Jun 21, 2025
Before Hiring in Peru
Discover the global hiring and employment landscape in Peru—a country with a booming economy characterized by its rich mining sectors and expansive agricultural exports. Peru is celebrated for its economic stability, business-friendly regulations, and significant trade agreements that facilitate access to international markets.
Explore the employment essentials including payroll, personal income tax, statutory contributions, annual leaves, minimum wage, terminations, visa requirements, and more. Gain valuable compliance insights for a smooth entry into the dynamic Peru market with Slasify's global premium HR platform.
At a Glance
| Capital | Lima |
| Currency | Peruvian Sol (PEN) |
| Payroll Cycle | Monthly |
| Minimum Wage | PEN 1,025 per month |
| Annual Leave | 30 days |
| Personal Income Tax | 8%–30% |
Personal Income Tax
Non-domiciled employees are taxes at a flat rate of 30% on their gross Peruvian-sourced income, while domiciled employees are taxed based on the following progressive rate:
| Tax Units (1 unit = PEN 5,150 as of 2024) | Tax Rate (%) |
|---|---|
| Up to 5 | 8 |
| 5–20 | 14 |
| 20–35 | 17 |
| 35–45 | 20 |
| Over 45 | 30 |
Note: The first 7 tax units are exempt from personal income taxes for domiciled employees assessed according to the above rates.
Local Tax
There are no local taxes on employment income in Peru.
Statutory Contributions
Employer Contributions
| Contribution rate | Note | |
|---|---|---|
| Social Health Insurance (EsSALUD) | 9% | If the employer provides private medical insurance through the Private Health System (EPS), the 9% of the employee's salary that is contributed for EsSALUD shall be divided into 2.25% for EPS and 6.75% for EsSALUD. |
Employee Contributions
| Contribution rate | Note | |
|---|---|---|
| Pension under the National Pension System (ONP) | 13% | The contribution rate for employees under the Private Pension System (AFP) shall be 12%, with 10% being the mandatory contribution to the individual capitalization fund and 2% being the approximate commission for the AFP. |
Payment of Wages
Employees in Peru shall have their wages be paid at least once a month.
Minimum Wage
The minimum wage in Peru is set at PEN 1,025 per month.
Statutory Bonus
Employees are entitled to periodically receive the following bonuses:
| Detail | |
|---|---|
| Statutory Bonus | This constitutes the employee's 13th and 14th month salary, paid twice a year in July and December. |
| Extraordinary Bonus | This amounts to 9% (or 6.75% for employees affiliated with EPS) of the Statutory Bonus, paid the same way as the Statutory Bonus |
In addition to the above, employers are also entitled to Compensation for Time of Service (CTS), with the amount being deposited into a bank account periodically, but is only received by the employee after termination. Those who work at least 4 hours per day are entitled to have CTS deposited into a bank account of their choosing bi-annually in May and November.
CTS pay is calculated over two semesters (May–October and November–April) and it shall amount approximately to the employee's monthly salary. Generally, the total amount of deposits for the year are calculated by taking into account the employee's monthly salary, with 1/6 of the bonus earned in the last semester being added.
Finally, employees engaged by a registered Peruvian entity with more than 20 employees shall also have a share in the company's profits.
| Sector | Rate for Profit Sharing |
|---|---|
| Fishing, Telecommunications and Industrial Companies | 10% |
| Mining, Wholesale and Retail Businesses, and Restaurants | 8% |
| Others | 5% |
Half of the profit share shall be distributed proportionally according to the employees' salaries and the other half shall be distributed according to the days worked by each employee.
Termination
Termination of an employment relationship can be done at will with the mutual agreement of the parties, or by the unilateral will of either party, provided that there are just cause.
Just cause for dismissal include the employee's misconduct, incompetence and incapacity to work, provided that there are no vacant positions they can be transferred to. In any case, if the employee is being dismissed due to their alleged misconduct, the employer is obligated to conduct an objective verification to the facts thereof.
The terminating party must give the other party a written notice of termination with their reasons and the relevant date of termination. If the proper procedure is not followed, the employee is forced to resign due to the employer's conduct or there is no just cause for dismissal, the termination will be considered unjust.
Notice Period
Employees who resign shall generally observe a 30-day notice period, though this can be waived by the employer upon request by the employee.
On the other hand, while there are no statutory notice periods in the traditional sense for dismissals, employers are required to give a written notice to the employee in advance explaining the reason for their dismissal.
| Reason for Dismissal | Advance Notice |
|---|---|
| Performance-related reasons | 30 days |
| Misconduct | 6 days |
Note: If the employee can justify their actions or improve on their performance before their termination date, the employer may withdraw their decision to terminate.
Severance Pay
Severance pay is only required for the case of unjust termination. However, it is common practice to give terminated employees severance regardless, calculated at 1.5 monthly salary per year of service, with incomplete years of service being calculated on a pro-rata basis.
Probationary Period
By default, a probationary period shall last for 3 months. This can be extended if further training or adaptation is needed, subject to the following maximum duration:
| Maximum Probation Period | |
|---|---|
| Non-management employees | 6 months |
| Management personnel | 1 year |
Work Time Rules
Standard Working Hours
Working hours in Peru are subject to a maximum of 8 hours per day and 48 hours per week.
If the employee is working inconsistent hours, daily work hours can exceed the above limit provided that the average working hours over a 3-week period does not exceed 48 hours per week.
Break Period
Employees are generally entitled to a 45-minute unpaid break period, which shall not be included in the calculation of their hours of work.
Furthermore, employees returning from their maternity leave are entitled to an aggregate of an hour of paid breastfeeding break per day until their child turns one year old. This duration is extended by one hour per child in the event of multiple births.
Overtime
The performance of overtime work must be voluntary for both the employer and employee, and can only be imposed without the employee's consent if the work is made necessary due to fortuitous events, a force majeure event or a continuity of the productive activity.
While there are no statutory maximum to overtime, employees working overtime must be compensated as follows:
| Overtime Hours | Overtime Pay |
|---|---|
| First 2 hours | 125% of normal hourly remuneration |
| Subsequent hours | 135% of normal hourly remuneration |
Weekly Rest Days
Employees are entitled to a weekly rest period of 24 consecutive hours, usually granted on Sundays.
Those who are required to work on their weekly rest day can be compensated with either a compensatory day off or payment for the work done with a 100% surcharge.
Holiday and Leave Entitlements
Public Holidays
Employees are entitled to paid leave on public holidays, and those required to work on a public holiday must be compensated with either a compensatory day off or payment for the work done with a 100% surcharge. There are 13 days of public holidays in Peru for 2024
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Maundy Thursday | March 28 |
| Good Friday | March 29 |
| Labor Day | May 1 |
| Feast of St Peter and St Paul | June 29 |
| Independence Day | July 28–29 |
| Santa Rosa de Lima | August 30 |
| Battle of Angamos | October 8 |
| All Saints' Day | November 1 |
| Immaculate Conception | December 8 |
| Battle of Ayacucho | December 9 |
| Christmas Day | December 25 |
Annual Leave
Employees are entitled to 30 calendar days of paid annual leave for each completed year of service, with those who have not completed a year of service having their entitlements prorated accordingly.
Usually, the leave will be continuous. However, the employee may request in writing to split their leave into two separate blocks, distributed as follows:
| Duration of leave | Distribution of annual leave | |
|---|---|---|
| Block 1 | At least 15 days | Can be taken either consecutively or in periods of no less than 7 and 8 continuous days |
| Block 2 | The remaining leave days | Can be taken inconsecutively in periods of at least a day. |
The exact dates of leave shall be agreed upon between the parties. Otherwise, the employer will decide for the employee based on their operational needs.
Note: Employees shall take at least 15 days of their annual leave, with the option of having any remaining days be paid in lieu.
Sick Leave
According to Article 36 of Law No. 26,790, employees who have either 3 consecutive months of contributions or at least 4 months in the 6 months prior to sickness are entitled to paid sick leave as follows:
| Who is paying? | |
|---|---|
| First 20 days | Employer |
| Day 21 up to a maximum of 11 months per year | EsSALUD |
Maternity Leave
Pregnant employees are entitled to 98 days of maternity leave, with at least 49 days being taken as post-natal leave. In the event of multiple births, the post-natal leave period shall be extended by 30 calendar days per child, up to a maximum of 120 days.
Employees who have contributed for at least 3 consecutive months or 4 non-consecutive months during the 6 months before confinement are entitled to receive maternity pay. This shall be covered by the employer, and later reimbursed by EsSALUD.
Paternity Leave
Male employees are entitled to paid paternity leave, the duration of which is determined as follows:
| Duration of paternity leave | |
|---|---|
| No outstanding circumstances | 10 consecutive days |
| Premature and multiple births | 20 consecutive days |
| Baby is born with a terminal congenital disease or a severe disability | 30 consecutive days |
| Mother has serious health complications | 30 consecutive days |
Employees intending to take paternity leave must inform their employers at least 15 days before the expected date of delivery.
Parental Leave
While there are no stipulations for any other parental leave entitlements, employees whose remuneration are not regulated by collective agreements shall be entitled to receive a family allowance equivalent to 10% of the minimum wage if they have one or more dependent children.
This allowance shall be given until the child turns 18 years old, or 24 years of age if they are pursuing higher education or university studies.
Other Leave
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Adoption Leave | Paid | 30 calendar days |
This is granted to employees with a child less than 12 years old, though male employees are only entitled to this leave if they are unmarried. Employees intending to go on adoption leave must notify their employer at least 15 calendar days in advance of the physical delivery of the child (Articles 1–7 of Law No. 27409). |
| Bereavement Leave | Paid | 5 calendar days | For employees in the event of the death of their spouse, parent, child and sibling (Supreme Decree No. 013-2023-TR). |
| Carer's Leave | Paid | 7 calendar days |
For employees whose direct family members fall sick or in terminal conditions due to accidents. Additional leave days may be possible with a medical certificate, though the leave will be taken from the employees annual leave entitlement and is subject to a maximum of 30 days (Articles 4–5 of Law No. 30012). |
| Rehabilitation Leave | Paid | 56 hours per year |
For employees to care for their dependents with disabilities who require medical assistance and rehabilitation therapy. For those taking this leave to care for their children, this is only granted to one parent if both parents work for the same employer (Articles 2–4 of Law No. 009-2019-TR). |
Get In Touch
Slasify is a one-stop platform offering Global Payroll, Employer of Record (EOR), and HR Outsourcing functions for the remote working generation. Our proven track record with Forbes Top 100 Companies and dedication to Diversity, Equity and Inclusion (DEI) make us your ultimate payroll partner. Join us on a global HR journey, where we cater to your needs across 150+ countries and unlock HR solutions tailored to you—Book a free consultation now!