Country Payroll Guide Peru

We deliver secure, compliant, accurate and touchless global payroll for Peru.

Get in touch
Lima Peru image

Key Facts

Capital
Lima
Date format
dd/mm/yyyy
Currency
Peruvian Sol (PEN)
VAT
the standard rate is 18%

Contributions

Employers

Health Insurance
Health Insurance - 9%
Total Employment Cost
Total Employment Cost - 9%

Employees

Pension Fund
Pension Fund - 13%
Total Employee Cost
Total Employee Cost - 13%

Minimum Wage

Minimum Wage
The minimum wage in Peru is 930 PEN per month.

Payroll

Payroll Cycle
Monthly
13th Salary

The 13th and 14th salaries are paid in July and December.

Income Tax

Employee Income Tax (1)
1 Tax Unit (UIT) = 4,400 PEN
Employee Income Tax (2)
Up to 5 UIT - 8%
Employee Income Tax (3)
5 UIT to 20 UIT - 14%
Employee Income Tax (4)
20 UIT to 35 UIT - 17%
Employee Income Tax (5)
35 UIT to 45 UIT - 20%
Employee Income Tax (6)
More than 45 UIT - 30%

Working Hours

General Working Hours

48 hours per week.

Overtime

The compensation for overtime hours should be agreed upon by the employer and the employee. However, the first 2 hours cannot be compensated with less than 25% of the total remuneration of the employee. For every additional hour, the surcharge cannot be less than 35% per hour.

Leave

Paid Time Off

Employees are entitled to 30 days per year. A minimum of 15 days must be taken and the other 15 can be cashed out.

Public Holidays

12 public holidays.

Sick Days

The first 20 days are paid by the employer, the following days are paid by the state (ESSALUD).

Maternity Leave

Mothers are entitled to 98 days of fully paid leave paid by ESSALUD through the company.

Paternity Leave

10 days paid by the employer.

Termination

Termination Process

Employees may be terminated on objective grounds or for cause, with documentation.

In general, employees should get a minimum of six calendar days of written notice so that the employee can respond in writing or 30 calendar days to prove his/her capability. The dismissal decision and reason should also be provided in writing to the trade union and the employee.

Employees which are dismissed without cause are generally entitled to severance pay for up to 12 months.Temporary employment termination must be according to the expiration of the contract. Permanent employment termination must either be voluntary resignation or dismissal for a justified cause.

Notice Period

When resigning employees must give at least 30 days’ notice.

Severance Pay

Generally, severance is not required in cases of separation due to their conduct or capacity. An employee terminated without cause is generally entitled to severance payments for a period of up to twelve months, depending upon the circumstances of the former worker’s employment history.

There is no specific redundancy pay required under Peruvian law.

Probation Period

The probationary period may last three months. When the work requires training and adaptation or when the nature of the work requires it, an extension may be granted. Such extensions must be done in writing and may not exceed:

  • six months in total for skilled workers and employees in positions of trust
  • one year for managerial roles

Visa

Employment Visa

Individuals who plan on working in Peru can obtain two different types of visas to gain entry to the country:

  • a tourist visa and a business visa. A tourist visa can be valid for either 90 or 183 days, while a business visa is valid for 90 days.

Individuals can apply for a work permit in Peru with either type of visa, and it’s not necessary for foreign citizens to have a job in Peru before entering the country.

After securing a job, the employee can apply for a Peruvian working visa.