Peru has a population of 34 million people, with fast-growing industries including mining, manufacturing, agriculture and fishing. Spanish is the main language spoken, along with many indigenous local languages. There are many opportunities for expansion in Peru, with a wide variety of business options and corporate tax rates varying by industry.

Payroll and Tax Considerations in Peru:

  • Fixed and part-time employment contracts must be in writing
  • The standard work week is 48 hours per week or 8 hours per day Monday – Saturday
  • The minimum wage is PEN 750 per month
  • Overtime is paid at 125% of wages for the first 2 hours of overtime, 135% beyond 2 hours, and for night shift work
  • Employees are eligible for severance if dismissed arbitrarily. They receive 1.5 months salary for every year of service up to a maximum of 12 months
  • Employees dismissed for conduct or lack of capacity are not eligible for severance
  • Income tax rates range from 8-30% based on tax units set each year by the Tax Administration
  • For non-domiciled employees, income tax is a flat rate of 30% gross income

HR and Statutory Requirements

  • Annual leave must be at least 30 days a year after 1 year of service with the employer
  • Employees are entitled to 20 days of sick leave paid by their employers. After 20 days the National Social Security Fund pays benefits
  • To qualify for National Social Security Fund sick payments the employee must have 3 months of service
  • Females are entitled to 49 days of paid maternity leave before delivery and 49 days after delivery. Employees must have 3 months of service to qualify
  • Fathers have the right to 10 calendar days of paternity leave. For premature or multiple births, they receive 20 calendar days
  • There are 2 types of social security systems an employee can choose from including the National Pension or the Private Pension System
  • The retirement age is 65 and employees are eligible to receive pension payments if they have contributed for at least 20 years

Holidays in Peru

  • January 1 – New Year’s Day
  • April 14 – Maundy Thursday
  • April 15 – Good Friday
  • May 1 – Labor Day / May Day
  • June 29 – St. Peter and St. Paul
  • July 28 – Independence Day
  • July 29 – Independence Day (day 2)
  • August 30 – Santa Rosa De Lima
  • October 8 – Battle of Angamos
  • November 1 – All Saints’ Day
  • December 8 – Feast of the Immaculate Conception
  • December 25 – Christmas Day

If you are thinking of expansion, or need to simplify your current operations in Peru, we can help. Blue Marble has a cloud-based payroll platform with aggregated monthly reporting, so you can view payroll across all countries and currencies in real-time. Our dedicated US-based service team and in-country experts in Peru are here to help when questions come up. Ensure compliance for your workforce and simplify payroll in Peru. Click here to learn more