Hire employees in

Peru, hassle-free

Hire employees in Peru, hassle-free

With Deel, your business can easily hire employees in Peru. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Peru is 3 days with Deel.

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Currency

Sol (PEN)

Capital

Lima

Official Language

Spanish

Payroll Cycle

Monthly

Hire employees in Peru. No entity needed.

Usually, to hire in Peru, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Peru also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Peru quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

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All the necessary benefits for Peru
built right in

Deel allows you to provide localized benefits for employees in Peru within minutes. All in one manageable online dashboard.

  • Pension Insurance
  • Public Health Insurance
  • Workers Compensation Insurance
  • Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in Peru

Navigate the tabs below to learn everything you need to know about hiring an employee in Peru

Pay & Tax Leave Policy Termination Statutory time off Onboarding Additional info

Minimum Wage Requirements

The minimum wage is PEN 930 per month.

Individual Income Tax

The individual income tax ranges from 8% to 30%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

In Peru, the income tax rate is calculated based on units. Each taxing unit represents an annual income tax of PEN 4,400.

Tax Unit (UIT) Tax Rate (%)
Up to 5 UIT 8%
Up to 20 UIT 14%
Up to 35 UIT 17%
Up to 45 UIT 20%
Over 45 UIT 30%

Employer Cost

The employer cost is generally estimated at 13% of the employee salary.

Monthly Costs
  • Public Health Insurance - 9%
  • Worker Compensation Insurance - 4%
  • Teleworking Allowance - PEN 115

Please note: If the employee is entitled to receive the family bonus (PEN 102.50), the monthly costs will be calculated on the sum of the employee's salary and the family bonus.

Annual and Bi-Annual Costs
  • Compensation for time of service - 8.56% (twice a year)
  • 13th Month Salary - 1 month basic salary
  • 14th Month Salary  - 1 month basic salary
  • Profit sharing - approximately PEN 190 for 2023, but it changes every fiscal year

Overtime Pay & Maximum Hours

Overtime payment is mandatory for employees with working hours established in the employment agreement. Hours outside of standard work hours are considered overtime. For additional hours, employees are paid:
  •  125% of the hourly rate, the first two hours
  •  135% of the hourly rate, the following hours
Employees working in executive positions may be excluded from overtime payment.

Maternity Leave

Employees, who have worked for 90 consecutive days, are entitled to 98 days of paid leave. 49 days must be taken before the child's birth. The employee will receive full salary during this period, and the public health insurance institution (Essalud) will be responsible for this pay. 

The employee may extend leave additional 30 days, on special cases with a certificate from the doctor/midwife.

Paternity Leave

Employees are entitled to 10 working days of paid paternity leave that must start the date the child is born.  The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay. 

The employee may extend leave on specific cases with approval from the doctor.

Parental Leave

In Peru, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Sick Leave

Employees are entitled to paid sick leave for up to 20 days paid by the employer. After this period, if sickness continues, the employee will be insured by the health insurance institution (Essalud) and paid full salary up to a year. 

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Peru can be complex. There is no at-will termination in Peru for employers [outside the probation period] and termination must be done for just cause. Compliant terminations include:

  •  Voluntarily by the employee
  •  By mutual agreement
  •  Unilaterally by the employer based on:
    • Probation period
    • Objective grounds
    • Disciplinary dismissal
  •  By expiration of the contract

Notice Period

The standard notice period is 30 days and will vary depending on the reason of the termination. 

Severance for Employees

In Peru employees who are terminated due to arbitrary -unjustified- dismissal are entitled to severance pay. Severance pay is 45 days of salary per year of service up to 12 months base compensation.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Paid Time Off

Both full-time employees are entitled to 30 calendar days of paid time off (PTO) a year. PTO accrues monthly at 2,5 days per month. Employees are eligible for annual leave after 12 months of work. 

Part-time employees are entitled to six calendar days of paid time off a year.

Public Holidays

Peru celebrates both 10 national and multiple regional holidays based on the location of the employee. 

National public holidays include:
  1. Good Friday
  2. Labor Day
  3. Saint Peter and Saint Paul Day
  4. National Holidays
  5. Santa Rosa de Lima
  6. Battle of Angamos
  7. All Saints' Day
  8. Day of the Immaculate Conception
  9. Battle of Ayacucho- Non-working day public sector
  10. Christmas Day

 

Onboarding

Onboarding takes three business days.

Employment Contract Details

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties. 

A contract must include: 

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Contract Backdating is not allowed.

Probation Period

Probation periods are not mandatory. The minimum probation period is 30 days and the maximum probation period is 90 days (three months). Probationary periods can be renewed for between 180 days and one year depending on the employee's job position, with previous approval from both parties. 
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Hiring in Peru, hassle-free

With Deel, your business can easily hire employees in Peru. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

13%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Peru?

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