Payroll & Employment Guide: Peru

Employment Contract

Contracts may include:

• Working hours
• Compensation
• Paid leave
• Notice & termination rules
• Social security enrolment
• Mandatory bonuses

Notice Periods:

• Usually 30 days

Termination of Employment:

Permitted for:

• Just cause
• Economic reasons
• Contract expiry

Severance may apply depending on contract type.

Learn more

Employee Benefits

Mandatory Benefits:

• Paid annual leave (30 days)
• Sick leave (up to 20 days)
• Maternity leave
• CTS (Compensation for Time of Service savings fund)
• Social security (EsSalud)
• Bonuses (July & December)
• Profit sharing (mandatory for certain companies)

Get more benefits

Leave Policies

Annual Leave:

• 30 days

Sick Leave:

• 20 days fully paid

Parental Leave:

• Maternity:98 days
• Paternity:10 days

Get more benefits

Healthcare

EsSalud provides national healthcare.

Private medical insurance is common for managers and professionals.

Get more benefits

Taxes in Peru

Peru uses a progressive income tax based on annual income.

Personal Income Tax Rates:

8%–30% progressive

Tax Allowances:

• Deductions for personal expenses
• Standard exemptions

Payroll in Peru

Base Salary:
Must meet statutory minimum.

Payment Schedule:
Monthly salary + mandatory biannual bonuses.

Additional Payments:

• School allowance (some employers)
• Transportation stipends

About payroll

Taxes and Social Security

Social Security:
Employer contributes to EsSalud (~9% of salary).

CTS:
Employers must deposit severance savings twice a year.

About payroll

Payroll Reporting

Monthly:

• EsSalud contributions
• Tax withholding

Annual:

• Employee certificates
• Annual declarations

Payroll Currency:PEN

About payroll

Legal Regulations

Labour laws cover minimum wage, benefits, termination rights, and social obligations.

Total Employment Cost:
Employer contributions can add 20–25% above gross salary.

Learn more

Work Permits & Visas for Peru

Foreigners require:

• Work visa
• Special residence permit
• Employer sponsorship

Learn more

Employer of Record in Peru

EOR services in Peru allow companies to hire employees legally without establishing a local entity, while ensuring full compliance with Peruvian labor laws. This enables businesses to enter the Peruvian market quickly and with reduced administrative effort.

All local employment responsibilities are managed on your behalf, minimizing compliance and operational risks.

Your EOR manages:

• Employment contracts compliant with Peruvian labor regulations
• Payroll processing and social security contributions
• CTS, statutory bonuses, and mandatory benefit compliance
• HR administration and employee record management

EOR in U.S.

PEO Services in Peru

PEO services in Peru support companies with a local entity by managing HR, payroll, and compliance functions.This allows employers to streamline HR operations while maintaining direct control over their workforce.Local expertise ensures ongoing compliance with Peruvian employment regulations.

PEO services support:

• HR tasks and employee administration
• Payroll processing and statutory deductions
• Benefits administration and employee support
• Compliance with Peruvian labor laws and regulations

Learn more

Payroll Calculator

Estimate gross–net salary and employer cost.

Go to Calculator