Navigating Employee Benefits in Peru: A Guide for Global Employers

As an international HR specialist, understanding Peru's employee benefits landscape is crucial for building a compliant and attractive compensation package. The system distinguishes between mandatory benefits, required by law, and supplementary offerings that enhance your employer value proposition.

Mandatory Employee Benefits in Peru

Peruvian labor law mandates several core benefits for all eligible workers. These include access to either the national health insurance (EsSalud) or a private health provider (EPS), workers' compensation insurance, and participation in the national pension system (ONP) or a private pension fund (AFP). A unique feature is the Compensation for Time of Service (CTS), a mandatory severance indemnity paid by employers. These statutory benefits form the non-negotiable foundation of any employment contract in the country.

Supplementary Employee Benefits in Peru

Beyond legal requirements, companies can differentiate themselves by offering a competitive benefits package. These voluntary perks are instrumental in attracting and retaining top talent in a competitive market like Peru's growing tech sector.

Profit-Sharing Schemes

Companies with more than 20 employees and annual profits are legally required to share a portion of their earnings. The percentage varies by industry: 10% for telecommunications, manufacturing, and mining; 8% for wholesale, retail, and restaurants; and 5% for other sectors. This distribution, calculated based on an employee's tenure and salary, is a powerful tool for aligning employee interests with company success, as seen in many successful mining multinationals operating in Peru.

Family Allowance

This monthly stipend supports employees with children under 18 or those pursuing higher education. The allowance is equivalent to 10% of the current legal minimum wage. Employees must provide proof of ongoing studies, with support available for up to six years, aiding in workforce stability and development.

Life Insurance

Since 2019, life insurance covering work-related accidents and illnesses has been mandatory. Provided through private insurers regulated by the SBS (Superintendency of Banking and Insurance), it offers significant payouts. For instance, in case of natural death, beneficiaries receive 16 times the average quarterly salary. For accidental death or permanent disability, the payout is 32 months' salary, providing critical financial security to families.

Supplementary Health Insurance

While EsSalud provides essential coverage, many employers offer private health insurance for faster service and broader treatment options, including preventative care. For example, a leading financial institution in Lima reported higher employee satisfaction after introducing a private plan that reduced specialist waiting times from months to weeks.

Additional Paid Time Off

Offering more than the statutory 30 days of annual leave is a common practice among multinational corporations to promote work-life balance and prevent burnout, a key consideration in high-stress industries.

Education Assistance

Tuition reimbursement or educational stipends are powerful incentives. A case study from a Callao-based logistics company showed a 25% increase in employee retention after implementing a program that supported degrees in supply chain management.

Meal Vouchers or Subsidies

Providing lunch vouchers is a simple yet effective benefit, directly reducing living costs for employees. Many companies in metropolitan Lima use electronic voucher systems, appreciated by employees facing rising food prices.

Flexible Work Arrangements

Remote or hybrid work models have gained traction, especially post-pandemic. This flexibility is highly valued by employees with long commutes in cities like Lima, improving job satisfaction and productivity.

Crafting the right mix of these benefits requires local expertise. Partnering with a global HR solution provider like SailGlobal can help you design a compliant and competitive package tailored to the Peruvian market, ensuring you meet legal standards while effectively engaging your workforce.

Employee Benefits in Peru: A Complete Guide for International Employers