Employer of Record (EOR) services: Hiring employees in Peru

If you’re hiring in Peru, an EOR can help you get started quickly.

A vibrant country with a skilled and growing workforce, Peru is one of the most dynamic economies in South America. Renowned for its rich cultural heritage and diverse economy, Peru plays an important role in regional trade and development. With a business-friendly environment and opportunities across various sectors, Peru is an attractive destination for international companies.

If you’re looking to expand your business presence in Peru, an Employer of Record or EOR can help you get started quickly. This allows you to bypass the complexities of setting up a local entity or managing HR functions directly.

An EOR takes on the role of the legal employer for your team in Peru, managing HR and compliance responsibilities while you maintain oversight of day-to-day operations and staff management.

Why choose an EOR for hiring in Peru?

Startups, small businesses, and medium-sized enterprises often find themselves needing to engage in global expansion but likely lack the in-house expertise or resources to handle this transition effectively. These and other employers can benefit from partnering with an EOR to make new hires in Peru. An EOR allows you to:

• Hire and onboard employees quickly, without the necessity of establishing a formal business entity in a new country.
• Reduce the risks related to regulatory compliance, as the EOR assumes responsibility for employing staff on your behalf.
• Outsource payroll, tax withholding, and benefits administration.
• Lighten the administrative burden related to HR, compliance, and payroll.

An EOR acts as the legal employer for your Peru-based workforce, taking care of onboarding local employees, managing payroll, and overseeing benefits and taxes—all in line with local employment laws and your company’s standards.

In essence, by letting an EOR handle essential HR and compliance functions, you can focus on growing your business in Peru.

Choosing between an EOR and PEO in Peru

To enter any new market quickly, including Peru, two main options are available. One is an Employer of Record or EOR. The other is a professional employer organization or PEO. Choosing the best approach requires understanding the fundamental differences between an EOR and PEO.

An EOR is an advisable choice for any employer that wants to offload all risk for compliance with employment law in Peru.

How to select the right EOR provider in Peru

A few key questions should guide your decision-making when choosing which EOR is best. How well does the EOR handle compliance with labor law in Peru compared to its competitors? What level of support does the EOR provide? Can the EOR effectively operate in Peru? It’s not guaranteed, as not all EORs are the same.

It is crucial to evaluate several factors when selecting the right EOR. Making the wrong choice could lead to compliance challenges, unexpected costs, and a poor experience for your new employees. Here’s what to look for:

• Legal compliance. The ideal EOR will have thorough expertise in Peru’s labor laws, worker protections, tax regulations, and local benefits. Look for a solid track record and ask about their experience managing challenges specific to your industry.
• Customer service: Does the EOR provide 24/7 support and have dedicated account managers for each client? Multiplier offers around-the-clock human-first support, with no bots, and assigns a dedicated manager to each account.
• Transparent pricing: Some EOR solutions may seem affordable initially but include fees that aren’t readily apparent at first or have unclear pricing structures. Be sure to fully understand the costs associated with the EOR before making your decision.
• Total cost of ownership: It’s not always about choosing the lowest price. Often, opting for the bargain-basement option can result in higher costs down the line due to poor quality. Ensure you invest in an EOR that aligns with your budget but does not compromise on quality or reliability.

How EOR services work in Peru

Step 1: Send that contract over

After you’ve partnered with the EOR, send a labor law-compliant employment contract. With Multiplier’s automated HR functions, contracts that meet Peruvian labor law requirements can be generated in under five minutes. You can customize these contracts for key employment terms, including job duties, working hours, compensation, and termination clauses. Once finalized, your EOR will securely send the contract and manage the signing process.

Step 2: Enhance compensation with competitive benefits

Thinking of offering a competitive benefits package? It’s a smart way to attract top talent. Instead of managing local providers on your own, your EOR simplifies the process by presenting benefit options that align with local practices and expectations.

Step 3: Get all your documentation in order

Next, collecting the new hire’s tax and banking details is essential. When working with an EOR like Multiplier, to set up payroll, this step is seamless. Multiplier manages all necessary documentation, making the process smooth and hassle-free.
While onboarding employee in Peru may seem like an impossible task, partnering with an EOR makes brings order to the situation.

Step 4: Run payroll for employees based in Peru

Managing payroll in Peru can be challenging, with specific tax rates and required social contributions. Employing through an EOR like Multiplier ensures that salary payments are accurate and timely while covering all local tax, contribution, and withholding obligations. With Multiplier’s global payroll solution, you can manage payroll for your entire global workforce from one central platform, bypassing the need to coordinate with multiple local providers.

Step 5: Manage your employees and leave HR compliance to the EOR

Multiplier handles all post-hire onboarding processes, ensuring that new employees in Peru receive their first paycheck—and every subsequent one—on time and calculated correctly, including all relevant benefits, taxes, and social contributions. If an employee in Peru requires termination or leaves voluntarily, Multiplier ensures that all compliance procedures are handled properly.

Moving forward with Multiplier EOR in Peru

An EOR is a smart solution for any business that needs to expand quickly into Peru. The operational efficiency, flexibility, and reduced risks that come with partnering with an EOR make it a valuable asset.

An all-inclusive solution, Multiplier’s Employer of Record (EOR) services empower you team’s expansion into Peru. By outsourcing essential HR tasks, you can hire top talent without dealing firsthand, yourself, with the complexities of setting up a local entity.

Multiplier facilitates seamless onboarding and ongoing employee management. You’ll benefit from locally compliant contracts, managed payroll and tax withholding, and customizable benefits that align with local standards.

In short, a positive employee experience and no compliance snafus.

Book a demo to see how Multiplier simplifies HR and compliance in Peru.