Expand your global workforce in Peru
Your guide to the employment landscape, working customs and local labor laws in Peru
Capital
Lima
Currency
Peruvian Sol (PEN)
Languages
Spanish
GDP per Capita
$7,004
Employer Tax
9%
Payroll Frequency
Monthly
Talent overview
Peru is well known for scenic beauty and amazing places to visit. The country has macroeconomic fundamentals for progressive GDP growth. From the beginning of the 21st century, Peru has reached a 5.0% average annual GDP growth in this period. Assertive Internal Policies and External Economic Conditions, combinedly in favor of Peru’s GDP growth.
Major economic hubs:
Lima, Arequipa, La Libertad, Piura
Skills in demand:
Information Technology, Health Assistants, Analysts
Peru
Top local universities in Peru
Pontificia Universidad Católica del Perú
Ranking
Local: 1
World: 280
Universidad Peruana de Ciencias Aplicadas
Ranking
Local: 2
World: 472
Universidad Tecnológica del Peru
Ranking
Local: 3
World: 647
Universidad Nacional Mayor de San Marcos
Ranking
Local: 4
World: 688
Universidad Privada del Norte
Ranking
Local: 5
World: 1416
Salary Data
The table below mentions the average salary in Peru:
| Job Title | Average Salary (PEN) | Average Salary (USD) |
| Financial Manager | 15,100 PEN | 3,984 USD |
| General Manager | 13,100 PEN | 3,456 USD |
| Business Development Manager | 11,300 PEN | 2,981 USD |
| Accounting Manager | 11,200 PEN | 2,955 USD |
| Customer Service Manager | 10,100 PEN | 2,665 USD |
| Project Manager | 8,000 PEN | 2,110 USD |
| Engineer | 7,010 PEN | 1,849 USD |
Employ in Peru
Employing in Peru
While onboarding employees from Peru, the employer should be knowledgeable about the work laws, regulations, deductions, and benefits. This section has all the necessary information that employers can use.
Employee Contract
In Peru, the Employment contract is an important document as it mentions all the necessary details and terms of the employment. The employee must be provided with the contract along with providing all the terms and conditions, mentioning the benefits, deductions, and leaves.
Probation Period
The probation period in Peru is 3 months long.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| April 17 | Maundy Thursday | National Holiday |
| April 18 | Good Friday | National Holiday |
| May 1 | Labor Day / May Day | National Holiday |
| June 7 | Battle of Arica | National Holiday |
| June 29 | St Peter and St Paul | National Holiday |
| July 23 | Peruvian Air Force Day | National Holiday |
| July 28 | Independence Day | National Holiday |
| July 29 | Independence Day (day 2) | National Holiday |
| August 6 | Battle of Junín | National Holiday |
| August 30 | Santa Rosa De Lima | National Holiday |
| October 8 | Battle of Angamos | National Holiday |
| November 1 | All Saints’ Day | National Holiday |
| December 8 | Feast of the Immaculate Conception | National Holiday |
| December 9 | Battle of Ayacucho | National Holiday |
| December 25 | Christmas Day | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 30 days | Yes |
| Sick Leave | 20 days | Yes |
| Maternity Leave | 98 days | Yes |
Leave Compliance
Payroll in Peru
Payroll cycle
The payroll cycle is monthly in Peru.
Minimum wage
Peru’s minimum wage rate is PEN 1,025 per month for all workers.
Overtime pay
Once the completion of the first hour of overtime, the employee receives 25% of the hourly salary. The overtime pay increases to 35% of the hourly salary for the following hours.
How taxes work
Employer Payroll Tax
| Scheme | Contribution |
| National Pension System (SNP) | – |
| Private Pension System (SPP) – Retirement Pension | 5% of gross payroll for fishermen, 1% for construction workers, 2% for miners |
| Private Pension System (SPP) – Invalidity and Survivors Pension | – |
Employee Payroll Tax
| Scheme | Contribution |
| National Pension System (SNP) | 13% |
| Private Pension System (SPP) – Retirement Pension | 10% + insurance & fees |
| Private Pension System (SPP) – Invalidity and Survivors Pension | 1.35% |
Employee Income Tax
| Net Annual Income (Tax Units) | Tax Rate (%) |
| 0 to 5 tax units | 8% |
| 5 to 20 tax units | 14% |
| 20 to 35 tax units | 17% |
| 35 to 45 tax units | 20% |
| More than 45 tax units | 30% |
VAT
The standard rate of VAT in Peru is 18%, out of which 16% is the actual VAT and 2% is Municipal Promotion Tax.
Bonus
13th Month Pay:
In Peru, 13th and 14th-month pay are mandatory.
Employee Benefits:
- Employee Insurance
- Health Insurance
- Pension
- Allowances
- Annual paid Leave
- 13th month pay
- 14th month pay
Employee offboarding
The employer has to provide a valid reason for the termination of the employment contract. In case of major casualties, the employer has to send the determination notice letter six days prior to the employee and trade union. These six days are given to the employee for the purpose of defense. According to the Peru Constitution, all the employees are protected against termination after the completion of the Probation period.
The notice period is 30 days in Peru.
The severance pay is only provided to the employees when the individual has completed the trial period and is dismissed without notice. The severance pay is one and a half months’ salary each month for a year.
Visa and
immigration
In order to work in Peru, the employer must issue a Labor certification approval from the Department of Labor. After that, the employer has to submit the Immigrant Petition for the Alien Worker to Immigration Services (USCIS) and U.S. Citizenship in order to recognize the individual’s preference of category in Visa.
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Your employment toolkit for Peru
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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration
There are five major types of categories;
- Employment First Preference (E1): Individuals who are the priority workers and people with extraordinary ability.
- Employment Second Preference (E2): Individuals holding advanced degrees and persons with exceptional ability.
- Employment Third Preference (E3): Individuals who are skilled workers, professionals, as well as Unskilled Workers.
- Employment Fourth Preference (E4): Individuals who are certain special immigrants.
- Employment Fifth Preference (E5): Individuals who are immigrant investors.