Country Guides
Peru
Employment in Peru at a glance
Capital
Lima
Language
Spanish, Quechua, Aymara
Remote workers
N/A
Currency
Sol
Working hours
Maximum of 8 hours per day or 48 hours per week
Public holidays
15 days
Minimum wage
1,130 PEN per month
Tax year
Jan 1 - Dec 31
Date format
DD/MM/YYYY
Misclassification penalties
In Peru, employee misclassification is not governed by a single law, but is determined based on the principle of subordination under labor law. If a contractor relationship is found to be an employment relationship, authorities such as SUNAFIL may reclassify the worker and impose fines under the General Labour Inspection Law (Law No. 28806). Employers may also be liable for back payment of wages, severance, social security contributions, and other statutory employment benefits.
Fun fact
Peru is home to Machu Picchu, one of the New Seven Wonders of the World, built by the Inca Empire in the 15th century.
Taxes in Peru
EMPLOYER CONTRIBUTIONS
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Employment tax: 0%
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Social security contributions: approx. 9%
Social security contributions: Health insurance
Contribution amount: 9%
In Peru, employees are automatically covered by the public healthcare system (EsSalud), which is mandatory and funded by the employer. Private health insurance (EPS) may be provided as an additional benefit. Employers may use up to 25% of the amount paid to EPS as a credit against their EsSalud contributions.
EMPLOYEE CONTRIBUTIONS
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Income tax: 8% - 30%
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Social security: ~10%–13%
Social security contributions: Pension funds (National pension system)
Contribution amount: 13%
Social security contributions: Pension funds (private pension system)
Contribution amount: 10% to 13%
INCOME TAX
Income tax on labour income and foreign income generated by domiciled individuals is imposed on a scale of brackets, as shown below:
Annual income (PEN): Up to 25,750 (5 UIT)
Tax rate: 8%
Annual income (PEN): 25,750 – 103,000 (5–20 UIT)
Tax rate: 14%
Annual income (PEN): 103,000 – 180,250 (20–35 UIT)
Tax rate: 17%
Annual income (PEN): 180,250 – 231,750 (35–45 UIT)
Tax rate: 20%
Annual income (PEN): Over 231,750 (45+ UIT)
Tax rate: 30%
Employer of Record in Peru
What is an EOR?
An Employer of Record is the legal employer of a worker in Peru. As such, the Employer of Record takes care of all Peruvian compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.
EOR responsibilities
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Ensuring their employment is compliant with local employment laws
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Processing local payroll
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Filing employment related taxes and returns
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Issuing payslips to the employee
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Distributing salary payments
How it works
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Company
Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.
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Boundless
Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.
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Employee
Signs an employment contract with Boundless and fulfils all of their obligations as a worker for the company.
Benefits in Peru
Statutory benefits in Peru
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Public health insurance
In Peru, public health insurance (EsSalud) is mandatory and funded by the employer.
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Social security
In Peru, social security contributions are mandatory for both employees and employers. These contributions fund various social security benefits, including pensions, healthcare, and other social assistance programs.
Common non-mandatory benefits in Peru
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Private health insurance
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Performance bonuses
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Education allowance
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Flexible working hours
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Extra vacation days
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Wellness programs
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Additional parental leave
Rights & protections in Peru
Employment contract
Minimum wage
Pay equity
13th and 14th month salary
Protection against discrimination
Protection against harassment
Right to be part of a Trade Union
Healthy and safe workplace
Social media and data privacy
Leave in Peru
Paid time off
30 days
Sick leave
365 days. First 20 days are paid by the employer. From the 21st to the 365th, it’s paid through social security
Maternity leave
98 days (49 days before childbirth and 49 days after childbirth); 30 extra days for multiple births or a child with disability
Paternity leave
10 calendar days. Between 20 and 30 additional days in cases such as premature birth, multiple births, birth with terminal congenital diseases, or severe disability.
Employment conditions in Peru
Probation
In Peru, the probation period can’t exceed 3 months for an employee and 6 months for an executive from the start date of employment.
Trade Unions
Unionisation in Peru is constitutionally protected. Article 28 of the Political Constitution of Peru recognises the right of workers to form and join trade unions, engage in collective bargaining, and strike.
Payments in Peru
Payday
Salary in Peru is generally paid on the last week of the month (date established in the employment contract).
Pay frequency
Salary in Peru is usually paid on a monthly basis, while the 13th month salary is paid in July and the 14th month salary is paid in December.
End of employment in Peru
Employers in Peru may terminate employees for valid legal reasons or during the probation period. If a dismissal is carried out without just cause or proper procedure, it is considered unfair (despido arbitrario) and triggers severance obligations.
Common termination scenarios include resignation, mutual agreement, and dismissal for cause (e.g. misconduct, poor performance, or absence).
In cases of unfair dismissal, employers must generally pay severance equal to 1.5 monthly salaries per year of service (pro-rated), capped at 12 salaries, plus all accrued benefits such as unused vacation, proportional bonuses (gratificaciones), and CTS (Compensation for time of service – severance savings benefits).
FAQs
Four common hiring models are available in Peru. You can run payroll from your HQ for short-term arrangements, engage contractors for project-based work, set up a local entity to hire directly, or partner with an Employer of Record. Each option carries different compliance and operational effort. An EOR allows compliant Peruvian employment without setting up a local entity.
Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Peru, employment is the right structure under Peruvian law, covering entitlements like paid annual leave, sick leave, and social security contributions. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Peru.
HR compliance in Peru means your policies and procedures respect all applicable Peruvian employment laws and regulations. When you hire in Peru, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave (up to 365 days), annual leave (30 days), minimum wage (PEN 1,130/month), tax credits, and a 48-hour working week. Following these is fundamental for running the business well.
An Employer of Record is the legal employer of the individual in Peru for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 98 days of maternity leave, 30 days of annual leave, and CTS savings. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.
Boundless partners with employment lawyers and advisers in each country we operate in, including Peru. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.
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