Everything you need to know about hiring employees in Peru through an Employer of Record
An Employer of Record (EOR) in Peru is a third-party organization that becomes the legal employer of your workforce in Peru, allowing you to hire employees without establishing your own legal entity in the country.
When you partner with an EOR like Europortage, we handle all employment-related responsibilities including contracts, payroll, taxes, benefits, and compliance with Peruvian labor laws (FLT). Your company maintains full operational control over day-to-day work and management of your team.
This arrangement is particularly valuable in Peru, where labor laws are complex and constantly evolving. The EOR assumes all legal risks and ensures your operations remain 100% compliant with Peruvian regulations, including mandatory benefits, tax withholdings, and termination procedures.
Peru's labor framework is governed by the Constitution and Labor Code, one of the most comprehensive and employee-protective labor codes in the world. An EOR navigates this complex system on your behalf.
Under Peruvian regulations, the EOR ensures full compliance with all mandatory requirements while you maintain complete control over your employees' daily work, performance management, and business objectives.
An Employer of Record is the ideal solution for various business scenarios
You want to hire in Peru without establishing a legal entity
You need to onboard employees quickly (within 48 hours)
You want to ensure 100% compliance with Peruvian labor laws
You're exploring the Peruvian market before full commitment
Essential facts for hiring inPeru
GMT-5
Spanish
48 hours (2026)
Promising, stable, reform-driven.
Europortage’s Peru EOR service handles all the complexity of CST compliance, so you can focus on growing your business.
Understanding the total cost of employment in Peru is crucial for budgeting. Here’s a transparent breakdown of what to expect.
Expect total employment costs to be approximately 35-45% on top of base salary
Transparent monthly fee starting from USD 400/employee
Avoid USD 30,000+ in entity setup costs
These costs are estimates and can vary based on industry, location, and specific employee arrangements. Contact us for a detailed cost calculation tailored to your hiring needs.
Navigate Peru’s comprehensive labor laws with confidence. Here are the essential employment regulations you need to know.
This Employment Guide is provided for informational purposes only. When hiring through Europortage’s Employer of Record (EOR) service in Peru, all payroll processing, tax withholdings, social security contributions, employment contracts, and compliance with Peru labor law are managed directly by our local partner.
Employers must contribute to several mandatory funds, which provide employees with pension savings, healthcare benefits, vocational training, and workplace safety protections.
The minimum wage in Peru is PEN 1,130 per month as of 2025. The government reviews and adjusts it periodically based on economic conditions and inflation. Some industries or roles may have higher wage requirements due to collective bargaining agreements (CBAs). Employers must comply with minimum wage regulations to avoid penalties and legal risks.
Most companies in Peru pay salaries once a month, typically at the end of the month. However, some businesses prefer bi-weekly payments to align with employee preferences and industry standards. The payroll cycle must be clearly defined in employment contracts to avoid disputes. Late salary payments can lead to fines and employee dissatisfaction.
Peruvian labor law mandates two extra salary payments per year. The first (Gratificación de Fiestas Patrias) is paid in July for Independence Day celebrations. The second (Gratificación de Navidad) is paid in December for the holiday season. Both bonuses equal one full month’s salary and come tax-free from social security deductions.
If paid once a month, employees are usually paid on the last working day of the month.
Salary payment must be done on a local bank account.
Peru’s payroll system requires both employers and employees to make mandatory contributions to fund social security, severance, and other benefits.
Employers in Peru must register their employees under one of two pension systems: the Private Pension System (AFP) or the National Pension System (ONP). The AFP (Administradoras de Fondos de Pensiones) is a privately managed, individual capitalization system where employees contribute a percentage of their salary to a personal pension fund. The ONP (Oficina de Normalización Previsional) is a state-run, pay-as-you-go system where contributions fund the pensions of current retirees.
Employers in Peru must contribute 9% of an employee’s salary to EsSalud (Seguro Social de Salud), the national health insurance system. This contribution ensures employees and their dependents receive medical coverage, including preventive care, hospital services, maternity benefits, and specialized treatments.
EsSalud operates as a public healthcare provider and covers a wide range of medical expenses for workers. Employers must register employees with EsSalud from the first day of employment to guarantee coverage.
Employers in certain industries must contribute to vocational training funds like Senati (Servicio Nacional de Adiestramiento en Trabajo Industrial) and SENCICO (Servicio Nacional de Capacitación para la Industria de la Construcción). These funds help develop the workforce by financing technical education and professional training programs for employees.
Senati: Applicable to industrial and manufacturing sectors, this fund trains workers in technical fields to improve productivity and efficiency.
SENCICO: Mandatory for employers in the construction sector, this fund supports training programs for architects, engineers, and construction workers.
The SCTR (Seguro Complementario de Trabajo de Riesgo) is a mandatory insurance program designed for employees working in high-risk occupations. This coverage protects workers from occupational hazards, work-related illnesses, and accidents. It includes medical care, disability compensation, and survivor benefits in case of severe injury or death.
Employers in construction, mining, manufacturing, and other high-risk industries must provide SCTR insurance.
In Peru, employees are required to make specific contributions from their salaries to support social security and pension systems.
Employees in Peru must contribute to a pension fund, choosing between the National Pension System (ONP) or the Private Pension System (AFP).
National Pension System (ONP): Employees who opt for the ONP contribute 13% of their gross monthly salary to this state-managed fund. The ONP operates on a pay-as-you-go basis, where current contributions fund the pensions of existing retirees. Upon reaching retirement age and meeting the required contribution period, employees receive a defined benefit pension.
Private Pension System (AFP): Employees choosing the AFP contribute approximately 12.5% of their gross monthly salary. This contribution is divided into:
The AFP system is based on individual capitalization, meaning each employee’s contributions are invested, and the returns accumulate in their personal account. At retirement, the accumulated funds determine the pension benefits.
Peru employs a progressive income tax system, where tax rates increase with higher income levels. The tax unit, known as Unidad Impositiva Tributaria (UIT), serves as a reference for tax calculations. As of 2024, 1 UIT equals 4,600 PEN.
The income tax brackets are as follows:
The standard workweek in Peru is 48 hours, with employees working 8 hours per day, 6 days a week. However, many companies adopt a 5-day workweek (Monday to Friday) with extended daily hours. Collective bargaining agreements (CBAs) or individual contracts may adjust working hours based on industry needs. Employees must receive at least one full rest day per week, typically on Sunday.
Learn more about 🔗Working hours in Colombia.
Overtime is any work beyond the legal 48-hour workweek. Peruvian labor laws require employers to pay extra compensation for overtime hours. The first two overtime hours must be paid at 125% of the regular hourly rate. Any additional overtime beyond that must be paid at 135% or more. Employees cannot be forced to work overtime, and agreements must be voluntary and documented.
Employees working between 10:00 PM and 6:00 AM qualify for night shift compensation. Night workers earn at least 35% more than those working regular hours. This premium applies even if the total working hours do not exceed the 48-hour weekly limit. Employers must ensure fair compensation for night workers and comply with occupational health and safety regulations.
Companies with more than 20 employees must implement a time tracking system. Employers must record work hours, breaks, and overtime accurately. Digital or biometric attendance systems are preferred for compliance and efficiency. Remote and external employees may be exempt from strict time tracking, but employers must still monitor working hours to prevent labor disputes.
In Peru, employers are mandated to provide specific benefits to employees, ensuring their welfare and compliance with labor laws. Below is an overview of these mandatory benefits:
Peruvian law requires employers to pay two additional bonuses annually, commonly referred to as the 13th and 14th-month salaries. The first bonus is disbursed in July, coinciding with Peru’s Independence Day celebrations, and the second in December, aligning with Christmas festivities. Each bonus is equivalent to one month’s salary. These bonuses are designed to provide employees with extra financial support during significant times of the year.
Learn more about 🔗 Gratificación in Peru (13th & 14th month salaries)
Cesantías are statutory severance savings in Colombia that employers must fund for every employees. For each year worked, the employer must set aside one full monthly salary, calculated proportionally if the employee works less than a year.
In addition, employers must pay interest on cesantías at 12% per year (1% per month) directly to the employee.
Learn more about Staturory Severance Savings (Cesantiás).
Cesantías are statutory severance savings in Colombia that employers must fund for every employees. For each year worked, the employer must set aside one full monthly salary, calculated proportionally if the employee works less than a year.
In addition, employers must pay interest on cesantías at 12% per year (1% per month) directly to the employee.
Learn more about Staturory Severance Savings (Cesantiás).
Many employers in Peru provide optional benefits to attract and retain top talent while enhancing employee satisfaction and productivity. Common perks include:
Faster access to medical specialists and advanced treatments.
Financial security for employees’ families.
Reduced daily commuting and food expenses.
Incentives for achieving company or individual goals.
Even if meal voucher is not a statutory benefits in Colombia, it is a really common benefits. In general, the benefit is offered as a card with a cash value that can be used in the company’s canteen or in partner restaurants. Also, it enables the employee to buy food in grocery stores and supermarket. Today, food vouchers exist on reloadable chip cards similar to debit cards.
While not legally required, these benefits help companies remain competitive, improve employee well-being, and increase retention.
Learn more about 🔗 Benefits in Peru
Employees in Peru receive 30 calendar days of paid annual leave after completing one year of continuous service. They can take their vacation all at once or split it into up to three periods, with one lasting at least 14 consecutive days. Employers must schedule leave in agreement with the employee and ensure proper payroll adjustments. If an employee does not take their leave, they must receive financial compensation for unused days.
Peru has 12 national holidays where employees are entitled to a paid day off. Some holidays are specific to regions or sectors, depending on industry agreements. Employees required to work on public holidays must receive double pay or an extra compensatory day off. Key national holidays include
Employers must track local holidays to ensure compliance.
Employees are entitled to paid sick leave if they provide a medical certificate. The employer pays for the first 20 days of sick leave. If the illness extends beyond this period, EsSalud (public health insurance) covers compensation for up to 11 months and 10 days. Employees with long-term illnesses or disabilities may qualify for extended paid medical leave. Employers must handle sick leave payments accurately to avoid legal issues.
In Peru, written employment contracts are mandatory for formal employees. These contracts must include:
Peruvian labor law strongly favors employees, ensuring job stability and strict termination regulations. Employers must provide clear justifications for dismissals, making a well-drafted employment contract essential to mitigate risks and ensure compliance.
Most employment contracts in Peru are indefinite-term, as fixed-term contracts are allowed only under specific conditions. These include seasonal work, special projects, or temporary replacements. Additionally, employers must register contracts for foreign employees with the Peruvian Ministry of Labor to ensure compliance with local regulations.
In Peru, the standard probation period is three months. Some positions allow extensions up to six months for skilled employees or one year for managerial roles. This initial phase allows employers to assess an employee’s suitability for the role.
Pre-employment medical exams are required in Peru, especially for positions involving occupational risks. Employers must conduct pre-employment, periodic, and exit medical examinations to ensure workplace safety. However, candidates have the right to refuse medical exams, and refusal cannot be used as a basis for employment denial or discrimination.
Ending an employment relationship in Peru requires careful adherence to labor laws. Employers must comply with regulations concerning notice periods, terminations, and severance pay to avoid disputes and legal penalties. The Peruvian labor market heavily favors employees, making it essential for businesses to handle terminations correctly.
Peruvian labor law requires a 30-day notice period for terminations without cause. However, contracts or collective bargaining agreements (CBAs) may extend this period. Employers can choose to pay employees in lieu of notice instead of requiring them to work during this period.
For dismissals with just cause, no notice is required. However, employers must provide clear evidence of misconduct, poor performance, or legal violations. Wrongful termination can lead to costly legal claims, making proper documentation essential.
Employees who resign must also provide a 30-day notice unless otherwise stated in their contract.
Severance pay depends on the type of termination:
✔️ Termination Without Cause: Employees are entitled to one and a half months of salary per year of service, capped at 12 months of pay. Employers must also release funds from the Compensation for Time of Services (CTS) account, which employees receive upon termination.
✔️ Termination With Just Cause: No severance is required if the employer provides valid legal justification for dismissal. However, failure to prove just cause can result in legal claims for compensation.
✔️ Mutual Agreement Termination: Employers and employees can negotiate severance terms, ensuring a fair and legally sound agreement.
Employers must process severance payments within 48 hours of termination to avoid penalties.
All employment relationships in Peru are governed by the Peruvian Labor Law.
Employers must pay the equivalent to 3 months salaries on top of the 12month regular salary.
Specialized justice system handles all employment disputes
Understanding your options is crucial for success in Peru. Compare the three main approaches to hiring Peruvian talent and discover which solution fits your business needs.
24-48 hours
Very Low
$400/month per employee
✔ Testing the Peruvian market
✔ Hiring 1-50 employees quickly
✔ Need immediate compliance
✔ No long-term commitment yet
✔ Remote teams across Peru
3-6 months
Medium
$15,000-$50,000 setup + ongoing costs
✔ Long-term commitment to Peru
✔ Large team (>50 employees)
✔ Physical office needed
✔ Significant local operations
✔ Strategic market presence
1-2 weeks
Very High
$0 setup (contractor rates vary)
✔ Short-term projects only
✔ Specialized consulting work
✔ True independence required
✔ Limited engagement scope
✔ Accepts classification risks
Peruvian labor law is extremely protective of workers. Misclassifying employees as independent contractors can result in severe penalties, back payments, and legal disputes. Courts often reclassify contractors as employees if there's evidence of:
❌ Regular working hours or schedules
❌ Direct supervision or management control
❌ Exclusivity or non-compete requirements
❌ Using company equipment or working from company premises
Stay informed with the latest updates, guides, and insights about hiring and managing employees in Peru
Gratificación in Peru is often compared to a 13th and 14th salary, yet it goes far beyond a simple bonus. Paid twice a year and strictly regulated by labor law, it plays a central role in employee compensation, payroll compliance, and cost planning. This guide explains how Gratificación works in Peru, how it is calculated, who is entitled to it, and what employers must do to stay compliant.
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Expanding into Peru requires a partner who understands both local complexities and international business needs. Europortage combines deep local expertise with global standards to deliver exceptional employer of record services. Our Peru EOR solution is built on years of experience helping companies successfully enter and scale in the Peruvian market. We handle the complexity so you can focus on what matters most—growing your business and managing your team.
Deep knowledge of Peruvian employment law and business culture
Hire employees in as little as 24 hours
15+ years of experience in international employment
Bilingual support team (Spanish / English) available during business hours
No hidden fees or surprise charges
Full adherence with continuous legal monitoring and updates
Get answers to common questions about hiring in Peru with an Employer of Record
Companies expanding to Peru usually have four hiring options:
1. Hire and pay from HQ: The worker stays in Peru but is paid directly by the parent company.
👉 Cons: This may seem easy, but it’s not compliant long-term. Payroll and taxes can’t be managed correctly if the worker isn’t a tax resident of the HQ country.
2. Engage independent contractors: Workers register locally as freelancers and invoice your company.
👉 Cons: This is not compliant for full-time or exclusive work. Misclassification can trigger audits, fines, and back payments.
3. Create a local entity: You establish a subsidiary or branch in Peru, register with tax authorities, and manage payroll internally.
👉 Cons: Complex, expensive, and slow. You’ll need legal representation, accounting support, and continuous regulatory updates.
4. Partner with an Employer of Record (EOR) in Peru: An EOR like Europortage legally employs your workers on your behalf. We handle payroll, taxes, and HR compliance.
👉 Cons: Slightly higher monthly costs than internal payroll—but full compliance and speed make it worthwhile.
Opening a local entity often takes 8–12 weeks.
You must:
Because HR and payroll compliance in Peru is complex, most foreign companies choose EOR services to avoid delays and risks.
Yes, but only in very specific cases.
If the contractor:
Works full time,
Reports to a manager,
Follows a schedule,
Uses your tools,
Peruvian law can reclassify them as employees.
This may lead to:
Back payments of severance and social benefits,
Social security debts,
Fines from the governmnet ,
Legal claims for wrongful classification.
If you need long-term, full-time workers, hiring through Europortage as EOR is safer.
HR compliance involves respecting all labor, payroll, and social security regulations, including:
Maximum working hours and overtime rules
Mandatory benefits (health, pension, severance, bonus)
Payroll frequency and reporting
Vacation and leave entitlements
Termination procedures and severance calculations
Peru has strict inspections from the Ministry of Labor.
Non-compliance leads to financial penalties, audits, and potential litigation.
Employer costs vary from 20% to 42% above gross salary, including:
Peru is cost-competitive, but compliance requires precise calculations.
An EOR becomes the legal employer of your workers in Peru.
Europortage:
Issues employment contracts compliant with Peruvian law.
Runs payroll and manages taxes.
Registers employees with health, pension, and risk entities.
Manages benefits, leave, and onboarding.
Ensures full labor compliance.
You manage the employee’s day-to-day work.
Europortage manages everything legal and administrative.
Europortage handles all employer obligations, including:
Health contributions
Pension contributions
SCTR risk insurance
Family compensation funds
Withholding income tax
Mandatory payroll reports
Your role:
Transfer payroll funds before the cutoff date and manage performance and workload.
Europortage works with local legal experts and payroll specialists.
We ensure:
Compliant contracts
Correct onboarding
Accurate payroll and benefit calculations
Proper tax and social security filings
Updated processes aligned with local law
Protection against misclassification
Secure handling of employee data
We stay ahead of legal changes so you stay compliant automatically.
Your responsibilities include:
Managing the employee’s tasks, goals, and performance
Providing work tools and support
Respecting Peruvian workplace guidelines (remote or on-site)
Funding payroll before the processing cutoff
Europortage handles everything else.
Absolutely.
Employees hired through Europortage receive full statutory rights, including:
Health and pension contributions
Occupational risk coverage
Severance fund
Severance interest
Service bonus
Paid vacation
Paid leave
Protection under Peruvian labor law
This ensures employees feel safe, supported, and fully compliant.
Our Peru EOR specialists are here to help. Schedule a free consultation to discuss your specific needs.
Join hundreds of companies that trust Europortage to handle their Peru employment needs. Start hiring in Peru today without the complexity of setting up a local entity.
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