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.
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
Minimum Wage Requirements
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%|
The employer cost is generally estimated at 13% of the employee salary.
- 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.
- 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
- 125% of the hourly rate, the first two hours
- 135% of the hourly rate, the following hours
The employee may extend leave additional 30 days, on special cases with a certificate from the doctor/midwife.
The employee may extend leave on specific cases with approval from the doctor.
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
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
Part-time employees are entitled to six calendar days of paid time off a year.
National public holidays include:
- Good Friday
- Labor Day
- Saint Peter and Saint Paul Day
- National Holidays
- Santa Rosa de Lima
- Battle of Angamos
- All Saints' Day
- Day of the Immaculate Conception
- Battle of Ayacucho- Non-working day public sector
- Christmas Day
Employment Contract Details
A contract must include:
- Start date
- Length of the employment
- Job description
- Termination conditions
Contract Backdating is not allowed.
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.
Estimate Employer Cost
*of employee salary