Hire in Peru

Employer of record in Peru

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Peru, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Peru ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Peru and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs. 

Hiring in Peru

Employer-employee relations are governed by the Peruvian Constitution, the Law on Labor Competitiveness and Productivity, the Law on Training and Labor Promotion and the Labor Procedure Act.

Employees may enter employment contracts for an undetermined period or a fixed term. Fixed-term contracts, which cannot exceed five years and are widely used in Peru, must be in writing and filed with the Ministry of Labor; if they are not, they are considered indefinite-term contracts.

A foreign employee’s contract must be in writing and in Spanish and approved by the labor ministry. Contracts cannot exceed three years but can be renewed. 

Employment contracts in Peru

As you look to hire employees in Peru, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

The constitution limits normal hours of work to eight a day, 48 a week; a weekly day of rest is mandated, and an unpaid daily meal break of at least 45 minutes.   It is permissible to establish atypical workdays as long as they do not exceed 48 hours in a workweek when combined.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:  

• Effective May 1, 2022, the monthly minimum wage is 1,025 soles. 
• Employees performing night work, defined as any work performed between 10 p.m. and 6 a.m., must be paid no less than the minimum monthly wage plus 30%. 
• Employees working beyond the normal workday must be paid a 25% premium for the first two hours, and 35% for additional hours. 
• Employees working on public holidays are paid at a premium rate of 200% of the normal hourly wage rate. 

As your employer of record in Peru, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.  

Bonuses

Employers are required to pay a bonus twice a year, in July and in December. Each bonus is equal to one month’s salary.

Probationary period

Probationary periods can last three months, at the end of which the worker gains the right of protection against unlawful dismissal. The parties can agree to extend the probationary period when the work requires a period of training or when the nature of the work or responsibility justifies an extension. It must be in writing and may not exceed:

• Six months in total in the case of skilled workers
• One year for managerial personnel or persons in positions of trust 

Termination and severance

Employers must give workers written notice not less than six calendar days prior to termination so that the worker can present a written defense in case any charges are brought against him or her or 30 calendar days to prove his or her professional capacities and correct any errors.

If a worker is guilty of serious misconduct and it would be unreasonable to require the employer to continue the employment relationship, no notice is required.

The employer is obligated to pay an employee severance only in cases of arbitrary dismissal. Employees terminated without cause are entitled to severance pay equal to 1.5 months’ compensation for each year of employment up to one full year’s wages. 

Employee benefits and paid leave in Peru

When negotiating terms of an employment contract with a candidate in Peru, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Female workers are entitled to maternity leave of 49 days before the due date and 49 days after childbirth. In the event of multiple births or the birth of a child with a disability, they are eligible for 30 additional days of maternity leave.

If the birth occurs later than the due date, the intervening days are treated as paid sick leave.

Maternity benefits are equal to 100% of the average daily wage during the four months preceding the birth, subject to a maximum, paid by the Social Security Health Insurance Program (EsSalud).

Vacation

Employees are entitled to 30 calendar days of vacation per year and receive the equivalent of their monthly salary as vacation pay. Upon agreement between the employee and employer, employees may divide their holiday period as follows: 

• 15 days taken in one continuous period or in periods of no less than seven and eight uninterrupted days
• The remaining 15 days are broken up into periods of less than seven calendar days and at minimum, one calendar day

Holidays

Employees are entitled to the following holidays: 

• New Year’s Day 
• Maundy Thursday (Thursday before Easter) 
• Good Friday (Friday before Easter) 
• Labor Day 
• Feast of Saints Peter and Paul 
• Independence Day (two days) 
• Saint Rosa of Lima Day 
• Naval Battle of Angamos 
• All Saints’ Day 
• Immaculate Conception 
• Christmas Day 

The president of the Council of Ministers issues an annual decree fixing the dates of annual paid holidays to be taken by the Peruvian civil service. Since 2006, the list has included a day adjacent to the public holiday (with the time off to be made up the following week). The private sector is encouraged to follow the decree. In addition, provincial governments declare regional public holidays.

Sick leave

Employees who have contributed to social security for at least three consecutive months or four months out of the six months before the incapacity began are entitled to paid sick leave.

EsSalud pays a monthly benefit equal to 100% of the worker’s average daily earnings in the last four months; this benefit is paid after a 20-day waiting period for up to 18 months. 

Health coverage

Peru’s social security system consists of two programs: social insurance and an individual account system. When employees enter the workforce, they must choose between the public social insurance system (SNP) and the individual account system (SPP). SNP members may switch to the SPP but may not switch back except under certain circumstances. These programs are funded by contributions from employees; employers and the government do not contribute. 

Additional benefits 

In addition to healthcare benefits, employees in Peru are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance. 

Employer social costs will cover a large portion of employee benefits in Peru, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed. 

Updated: January 04, 2024

Employee onboarding with an employer of record in Peru

We write and validate all local employment contracts, streamlining the onboarding process for you and your Peru employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Peru, we will:   

• Schedule a welcome call to discuss HR and employment information for Peru, as well as answer any questions 
• Prepare a customized employment contract in English or other local language 
• Share the employment contract and benefits information with the new employee for signature and review 
• Gather tax and banking information from the employee to set up payroll 
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll 

The entire onboarding process for the employee is often completed in as little as two weeks. 

Partner with Safeguard Global as your Peru employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Peru. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today. 

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.