* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Peruvian sol (S/)


PET (GMT -5)

Employment Cost


Annual Leave

30 days

In-demand Specialties*
Sales & Marketing , Software Programming & It , Product Designing

The Ultimate Guide to Hiring Employees in Peru

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Peru

Employing in Peru requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Peru with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Peru quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Employees in Peru are paid 13th and 14th month salaries in July and December; these are equivalent to one month's salary.

An employee with one or more children under the age of 18 is eligible to receive an additional “household allowance,” which is a monthly payment of 10% of the monthly minimum wage. These also include children above the age of 18 who are pursuing higher education until the age of 24.

Employees are entitled to 30 days of paid vacation leave per year. A minimum of 15 days must be taken and the other 15 can be cashed out.


Fundamental Aspects of Employment in Peru

When hiring employeesin Peru, businesses must provide a written employment contract in both the local language and English. There are two types of contracts: fixed-term and indefinite-term. Most employers in Peru prefer indefinite-term contracts. The contract should include details like:

  • Employer and employee details
  • Compensation and payroll cycle
  • Job responsibilities
  • Termination clauses and notice periods

Probationary Period in Peru

The probationary period in Peru is three months. It can be extended to six months or even a year, giving both the employer and employee more time to evaluate the fit before committing to a long-term arrangement.

Working hours in Peru

Regular working hours in Peru involve working 8 hours per day and 48 hours per week.

Overtime in Peru

Overtime payment is mandatory for employees with working hours specified in the employment agreement. The payment for additional hours is structured as follows:

  • The first two hours: 125% of the hourly rate
  • Subsequent hours: 135% of the hourly rate

Navigating Key Aspects of Payroll in Peru

Peru has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January- 31 December

Fiscal Year in Peru

1 January- 31 December is the 12-month accounting period that businesses in Peru use for financial and tax reporting purposes.

Payroll Cycle in Peru

The payroll cycle in Peru is usually monthly, with employees being paid by the last working day of the month.
5.34 PEN p/h

Minimum Wage in Peru

The minimum wage for employees in Peru is typically 5.34 PEN per hour, amounting to ~1,025 PEN per month for a typical 48 hour work week.

Minimum wages and salaries in Peru

The national minimum wage in Peru is 1,025 PEN per month.

Bonus Payments in Peru

It is mandatory for employers to provide 13th-month and 14th-month payments. Employees receive an additional month's salary twice a year. The first payment occurs at the end of July, around Peru's Independence Day, and the second payment is made at the end of the year, around Christmas.

Comprehensive Overview of Employment Taxes in Peru

Understanding the tax obligations for both employers and employees is crucial when operating in Peru's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Peru.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 9.00% on top of the employee salary in Peru.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Peru, the typical estimation for employee payroll contributions cost is around 12.50% to 13.00%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

The income tax rates are applied on a progressive scale expressed in UITs (Tax Units). The value of one UIT is set by the government at the beginning of each year.

Tax Rate Income Bracket

Pension in Peru

The national pension system is funded through employee contributions. Employers are required to make monthly withholdings for pension fund contributions, which are equal to 13% to 12.5% of the compensation received by the employee.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Peru tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Peru

When it comes to terminating employment in Peru, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

The termination of employment varies depending on the terms outlined in the employment agreement and collective agreement. It is influenced by the type of contract and the reason for termination. Compliant terminations may occur through:

  • Mutual Agreement
  • Expiration of the Contract
  • Objective Grounds
  • Disciplinary Dismissal

Notice Period

Employers are required to provide a notice period of 6 to 30 days, depending on the reason for dismissal.

Severance Pay

Severance pay is not provided when an employee is separated due to issues related to their behavior or performance. However, if an employee is dismissed without a valid reason, they may be entitled to severance pay, amounting to up to twelve months' worth of compensation.

Annual Leave Entitlements and Company Policies in Peru

The annual leave entitlement in Peru is 30 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Peru

Peru observes a total of 10 national holidays, along with additional regional holidays that vary based on the employee's location.

Holiday Date

Paid Time Off in Peru

Maternity Leave in Peru

Paternity Leave in Peru

Sick Leave in Peru

Adoption Leave

Civil Duty Leave

Parental Leave In Peru

Peru's Benefits Built Into Playroll

Competitive benefits package in Peru

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Peru's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Peru

Make your benefits package in Peru a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Peru

Playroll allows you to provide localized benefits for employees in Peru within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Peru create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Peru

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Peru.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!