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Exclusive Webinar - Paying global teams: Strategic compensation and compliant payroll
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Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.
Explore Multiplier EOR
Your guide to the employment landscape, working customs and local labor laws in Peru
Capital
Lima
Currency
Peruvian Sol (PEN)
Languages
Spanish
GDP per Capita
$7,004
Employer Tax
9%
Payroll Frequency
Monthly
Peru is well known for scenic beauty and amazing places to visit. The country has macroeconomic fundamentals for progressive GDP growth. From the beginning of the 21st century, Peru has reached a 5.0% average annual GDP growth in this period. Assertive Internal Policies and External Economic Conditions, combinedly in favor of Peru’s GDP growth.
Major economic hubs:
Lima, Arequipa, La Libertad, Piura
Skills in demand:
Local: 1
World: 280
Local: 2
World: 472
Local: 3
World: 647
Local: 4
World: 688
Local: 5
World: 1416
The table below mentions the average salary in Peru:
| Job Title | Average Salary (PEN) | Average Salary (USD) |
| Financial Manager | 15,100 PEN | 3,984 USD |
| General Manager | 13,100 PEN | 3,456 USD |
| Business Development Manager | 11,300 PEN | 2,981 USD |
| Accounting Manager | 11,200 PEN | 2,955 USD |
| Customer Service Manager | 10,100 PEN | 2,665 USD |
| Project Manager | 8,000 PEN | 2,110 USD |
| Engineer | 7,010 PEN | 1,849 USD |
While onboarding employees from Peru, the employer should be knowledgeable about the work laws, regulations, deductions, and benefits. This section has all the necessary information that employers can use.
In Peru, the Employment contract is an important document as it mentions all the necessary details and terms of the employment. The employee must be provided with the contract along with providing all the terms and conditions, mentioning the benefits, deductions, and leaves.
The probation period in Peru is 3 months long.
| Date | Holiday | Type |
| 1 Jan | New Year’s Day | National Holiday |
| 28 Mar | Maundy Thursday | National Holiday |
| 29 Mar | Good Friday | National Holiday |
| 1 May | Labour Day | National Holiday |
| 7 Jun | Battle of Arica | National Holiday |
| 29 Jun | Feast of St Peter and St Paul | National Holiday |
| 23 Jul | Peruvian Air Force Day | National Holiday |
| 28 Jul | Independence Day | National Holiday |
| 29 Jul | Independence Day (Day 2) | National Holiday |
| 6 Aug | Battle of Junín | National Holiday |
| 30 Aug | Santa Rosa de Lima | National Holiday |
| 8 Oct | Battle of Angamos | National Holiday |
| 1 Nov | All Saints’ Day | National Holiday |
| 8 Dec | Immaculate Conception | National Holiday |
| 9 Dec | Battle of Ayacucho | National Holiday |
| 25 Dec | Christmas Day | National Holiday |
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 30 days | Yes |
| Sick Leave | 20 days | Yes |
| Maternity Leave | 98 days | Yes |
Leave Compliance
Payroll cycle
The payroll cycle is monthly in Peru.
Minimum wage
Peru’s minimum wage rate is 750 PEN per month ($294) for all workers.
Overtime pay
Once the completion of the first hour of overtime, the employee receives 25% of the hourly salary. The overtime pay increases to 35% of the hourly salary for the following hours.
| Category | Contributions |
| Health Insurance | 9% |
| Category | Contributions |
| Health Insurance (Employee is associated with the National Pension System) | 13% |
| Health Insurance (Employee is associated with the Private Pension System) | 12.5% |
| Tax Units* | Annual Income | Tax Rate |
| 0 to 5 | 0 to 23,000 PEN | 8% |
| 5 to 20 | 23,000 to 92,000 PEN | 14% |
| 20 to 35 | 92,000 to 1,61,000 PEN | 17% |
| 35 to 45 | 1,61,000 to 2,07,000 PEN | 20% |
| 45 and above | 2,07,000 PEN and above | 30% |
*One tax unit is equal to 4,600 Peruvian soles (PEN).
The standard rate of VAT in Peru is 18%, out of which 16% is the actual VAT and 2% is Municipal Promotion Tax.
In Peru, 13th and 14th-month pay are mandatory.
The employer has to provide a valid reason for the termination of the employment contract. In case of major casualties, the employer has to send the determination notice letter six days prior to the employee and trade union. These six days are given to the employee for the purpose of defense. According to the Peru Constitution, all the employees are protected against termination after the completion of the Probation period.
The notice period is 30 days in Peru.
The severance pay is only provided to the employees when the individual has completed the trial period and is dismissed without notice. The severance pay is one and a half months’ salary each month for a year.
In order to work in Peru, the employer must issue a Labor certification approval from the Department of Labor. After that, the employer has to submit the Immigrant Petition for the Alien Worker to Immigration Services (USCIS) and U.S. Citizenship in order to recognize the individual’s preference of category in Visa.
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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration
There are five major types of categories;
By use case
By team
By company size
Peru
