Employer Record in Peru

Basic information

Capital:Lima

Time zone: GMT-5

Languages: Spanish

Currency code:PEN

Human Resources at a Glance 

Contract Terms

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.

Guidelines Regarding Probation Period/Trial 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.

Regulations and Rules Regarding Working Hours

Employees in Peru are not allowed to work more than eight hours a day and 48 hours a week.

Overtime is paid according to the following rates

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.

Minimum Wage Requirements

The minimum wage is PEN 930 per month.

Payroll Cost for Employers

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

Termination

Grounds

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 compensation

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.

Payment & leave Compensation & Holidays

SalaryPayment

Monthly

Payslip Payroll

No explicit provision.

Annual Leave

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.

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.

Maternity & Parental 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.

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

Tax and Social Security Information

Personal 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%

Social security

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

Public Holidays 2024

Holidays	Date
New Year’s Day	1.1
Maundy Thursday	3.28
Good Friday	3.29
Labour Day	5.1
Feast of St Peter and St Paul	6.29
Independence Holiday	7.28-7.29
Santa Rosa de Lima	8.30
Battle of Angamos	10.8
All Saints’ Day	11.1
Immaculate Conception	12.8
Battle of Ayacucho	12.9
Christmas Day	12.25