Peru Employment Guide
Peru Employment Guide
Peru is in western South America, along the Pacific coast, with the Andes Mountains running through the country. It has abundant natural resources and a diverse ecological environment, plus ~33 million people. Its economy focuses on mining, agriculture, fishing, manufacturing and tourism, with Lima (the capital) as the political, economic and cultural center. Peru’s labor laws require written labor contracts and set a 48-hour standard workweek, while guaranteeing minimum wages and social insurance. Dismissals must follow legal procedures and provide employees with financial compensation. The laws also stipulate benefits like paid annual leave, sick leave and maternity leave, ensuring relatively stable employment relations overall.
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Currency
Peruvian Sol (PEN)
Capital
Lima
Official language
Spanish, Quechua, and Aymara
Salary Cycle
Monthly
Our Employment Guide in Peru
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Minimum Wage Requirements in Peru
Peru's national minimum wage is currently set at 930 Peruvian Soles per month. This baseline compensation applies to all formal sector employees and serves as the foundation for calculating various employment benefits.
Understanding Peru's Personal Income Tax System
Peru employs a progressive tax system with rates ranging from 8% to 30% based on annual income brackets. The tax calculation utilizes Tax Unit (UIT) values, where 1 UIT equals approximately 4,400 Soles annually. Individual circumstances such as marital status and number of dependents can influence final tax liabilities.
| Taxable Income Brackets (in UIT) | Applicable Tax Rate |
|---|---|
| Up to 5 UIT | 8% |
| 5 to 20 UIT | 14% |
| 20 to 35 UIT | 17% |
| 35 to 45 UIT | 20% |
| Over 45 UIT | 30% |
Employer Cost Structure for Peruvian Employees
Companies hiring in Peru should anticipate additional costs averaging 13% of base salary. For example, when using SailGlobal's employment services, these calculations are automatically factored into comprehensive cost projections.
Monthly Employer Contributions
- Public Health Insurance (EsSalud): 9% of monthly remuneration
- Workplace Risk Insurance: 4% of monthly salary
- Remote Work Allowance: 115 Soles monthly (if applicable)
Note: Family allowances (102.50 Soles) when applicable are included in the calculation base for social security contributions.
Semi-Annual and Annual Obligations
- Service Time Compensation (CTS): 8.56% of salary, paid twice annually
- 13th Month Bonus: Equivalent to one month's salary
- 14th Month Bonus: Additional month's salary bonus
- Profit Sharing: Variable amount (approximately 190 Soles in 2023)
Overtime Regulations and Working Hours
Peruvian labor law mandates overtime compensation for hours exceeding the standard 48-hour workweek. Compensation structure follows:
- First 2 overtime hours: 125% of regular hourly rate
- Subsequent overtime hours: 135% of regular hourly rate
Management-level employees may be exempt from overtime provisions depending on their specific contract terms and responsibilities.
For precise cost calculations tailored to your specific hiring needs in Peru, consult SailGlobal's HR specialists who maintain current compliance data and can provide detailed breakdowns.
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