Employee agreements

Employment contracts must be written and include specific details, such as job duties, compensation, and work schedules. Fixed-term agreements are allowed under specific conditions and must be registered with Peru’s Ministry of Labor.

Probationary periods

Peruvian law allows a standard three-month probation period, which may be extended up to one year for technical or managerial roles, provided it is clearly stated in the employment contract.

Working hours

The legal work week in Peru is 48 hours, typically divided into six eight-hour days. Overtime must be compensated, with the first two hours paid at 25% above the base rate, and additional hours at 35% above.

How an EOR helps international employers hire in Peru

Velocity Global’s employer of record services in Peru simplify cross-border hiring with:

• Localized employment contracts
• Compliant onboarding and offboarding
• On-the-ground HR support
• Guidance on Peruvian labor law

Payroll cycles

Salaries must be paid monthly, typically on the last business day of each month. Employers are responsible for managing deductions, contributions, and statutory payments.

Minimum wage and wages

As of 2025, the minimum monthly wage in Peru is PEN1,050 (Ministerio de Trabajo y Promoción del Empleo). Salaries must be paid in Peruvian soles and reflect the role’s responsibilities.

Bonus payments

Employees receive two mandatory bonuses each year—one in July and another in December—each equal to one month’s salary. Employers also contribute to CTS (Compensación por Tiempo de Servicios), a severance savings fund, in May and November.

How an EOR supports payroll

Velocity Global manages every aspect of Peruvian payroll, from accurate salary payments and tax withholdings to bonus administration and CTS contributions. The platform also simplifies invoicing and currency conversion where needed.

Income tax and due dates

Income tax is withheld monthly and remitted to SUNAT, Peru’s tax authority. Tax brackets are progressive, ranging from 8% to 30% depending on income (SUNAT).

Health insurance

Employers must contribute 9% of the employee’s salary to EsSalud, the national healthcare system. Some employers offer private health coverage as a supplemental benefit.

Pension contributions

Peru offers two pension systems: the state-managed ONP and private AFP (Administradoras de Fondos de Pensiones). Contributions are mandatory, and Velocity Global ensures compliance with the selected plan.

How an EOR supports tax compliance

Velocity Global takes care of all income tax calculations, withholdings, and remittances. Our platform also provides clear reporting to help companies budget for payroll and tax liabilities.

Annual leave

Employees earn 30 calendar days of paid vacation each year after completing 12 months of continuous service.

Parental leave

Maternity leave includes 98 paid days, funded by EsSalud. Fathers are entitled to 10 paid days, or up to 20 days in special cases.

Sick leave

The employer covers sick leave for the first 20 days. After that, EsSalud provides coverage if documentation is submitted correctly.

Public holidays

Peru observes 12 national holidays, including Independence Day (July 28–29) and Christmas (December 25). Regional holidays may also apply, depending on the location.

How an EOR simplifies leave management

Velocity Global’s platform automates leave tracking, manages documentation for EsSalud reimbursement, and ensures compliance with national and regional holidays.

Statutory benefits

Peruvian law mandates:

• EsSalud health insurance
• Pension contributions
• Paid vacation
• Holiday and severance bonuses

Supplemental benefits

Many companies offer additional perks, such as:

• Private health coverage
• Meal vouchers or stipends
• Internet and phone allowances
• Remote work flexibility

How an EOR enhances benefits administration

Through our Global Benefits solution, Velocity Global provides employers with access to competitive supplemental benefits packages tailored to local expectations, enabling companies to stand out in Peru’s job market.

Notice periods

Dismissals for misconduct require six days’ written notice. Terminations for economic reasons require 30 days’ notice, including documented justification.

Severance pay

Unjustified dismissal requires payment of 1.5 months of salary per year of service, subject to legal caps. Documentation is key to avoiding penalties.

How an EOR helps with terminations

Velocity Global supports compliant offboarding by:

• Drafting termination letters
• Advising on legal grounds for dismissal
• Calculating and processing severance
• Maintaining required employment records