Payroll and Benefits Guide Peru
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
| 9% to 9.75% |
Health Insurance (National Health System (EsSalud)/ Private Health System (Entidades Promotoras de Salud or EPS). Rate can vary depending on company size.
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| 9.72% | The Peru Working Compensation or Compensation for Length of Service (CTS). |
| Variable | Mandatory Life insurance |
| 10% of minimum wage | Family Allowance (only for workers with children) |
| 18.72% – 19.74% + Life Insurance | Total Employment Cost |
*The CTS is mandatory only for the private sector and has specific minimum eligibility for workers who have worked at least one month (30 calendar days) in the service of the same employer, work a minimum daily average of 4 hours, and applies to an appropriate company size (20+ workers).
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Employee Payroll Contributions
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12.50% to 13.00%
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Pension Fund (13% for employees affiliated with the National Pension System or circa12.5% for employees affiliated with the Private Pension System)
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12.50% to 13.00%
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Total Employee Cost
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Employee Income Tax
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1 Tax Unit (UIT) = 5,150 PEN
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8.00%
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Up to 5 UIT
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14.00%
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From 5 UIT to 20 UIT
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17.00%
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From 20 UIT to 35 UIT
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20.00%
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From 35 UIT to 45 UIT
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30.00%
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More than 45 UIT
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Employer taxes
Employee taxes
Minimum Wage
General
The national minimum wage in Peru is 1,130 PEN per month.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
Employees are paid in Peru monthly.
13th Salary
13th-month and 14th-month payments are mandatory in Peru. The employer must pay an additional month’s salary twice a year, once at the end of July around Peru’s Independence Day and the other at the end of the year during Christmas.
Authority Payments
|
Authority Payment |
Paid To |
Due Date |
Method |
|
ONP – Pension fund (Public) |
SUNAT |
It is variable depending on the last digit of the TAX ID of the Company. I send the 2020 schedule so you can see it. |
– CHARGE TO THE COMPANY’S BANK ACCOUNT – CASH – ECHECK |
|
RENTA 5TA CATEGORÍA (Income Tax) |
SUNAT |
It is variable depending on the last digit of the TAX ID of the Company. I send the 2020 schedule so you can see it. |
– CHARGE TO THE COMPANY’S BANK ACCOUNT – CASH – ECHECK |
|
ESSALUD (National Insurance) |
SUNAT |
It is variable depending on the last digit of the TAX ID of the Company. I send the 2020 schedule so you can see it. |
– CHARGE TO THE COMPANY’S BANK ACCOUNT – CASH – ECHECK |
|
AFP – Pension fund (Private) |
The maximum term of presentation and payment is until the fifth (05) business day of each month. |
– CHARGE TO THE COMPANY’S BANK ACCOUNT – CASH – ECHECK |
Working Hours
General
Full-time employment is 8 hours per day, 48 hours per week.
Overtime
| Aspect | Regulation Details | Notes |
| Maximum Ordinary Hours | 8 hours per day and 48 hours per week. Overtime (trabajo en sobretiempo or horas extras) is any hour worked beyond these limits. | |
| Maximum Daily Cap | While there is no statutory cap on annual overtime hours, the total workday is limited by the minimum 12-hour rest period between shifts. | Overtime is capped by the need to ensure worker health and safety. |
| Overtime Consent | Overtime must be voluntary, except in cases of force majeure, accidents, or when the work is essential to prevent serious harm to people or property. | Employees have the right to refuse non-essential overtime. |
| Exemptions | Managerial personnel, confidence personnel (trusted employees with higher responsibility), and workers whose activities are not subject to immediate supervision are generally exempt from the maximum working hours and overtime provisions. |
Mandatory Overtime Pay Rates (Tiered System)
Overtime compensation is mandatory and is calculated as a tiered minimum premium percentage of the employee’s regular hourly pay rate.
| Overtime Hours Worked | Minimum Premium Rate (Supplement) | Total Pay Rate | Notes |
| Tier 1 (First 2 hours of overtime in a day) | +25% of the regular hourly rate. | 125% | Applies to the first two hours of daily overtime. |
| Tier 2 (Subsequent hours of overtime in a day) | +35% of the regular hourly rate. | 135% | Applies to the third hour and all subsequent overtime hours in that day. |
| Night Overtime | +35% of the regular hourly rate. | 135% | This rate applies if the overtime work occurs during the night period (10:00 PM to 6:00 AM). |
Compensation for Rest Days and Holidays
| Day/Condition | Minimum Compensation Rate (Statutory) | Total Pay Rate | Notes |
| Weekly Rest Day / Public Holiday (Work) | +100% of the normal daily wage. | 300% (of daily wage) | The employee is entitled to: 1) Normal pay for the day, 2) The value of the hours worked, and 3) A 100% premium on the hours worked. This effectively results in triple pay for the hours worked on the rest day/holiday. |
| Alternative Compensation | Compensatory rest day. | N/A | The employee may agree to receive a compensatory rest day in lieu of the premium pay for working on a rest day or public holiday. |
| Night Work Premium (Non-Overtime) | +35% of the minimum vital remuneration (minimum wage). | Varies | Employees working the standard shift during night hours (10:00 PM to 6:00 AM) are entitled to a mandatory night work premium of $35\%$ of the minimum wage, regardless of overtime. |
Leave
Annual leave (vacation)
Employees are entitled to paid annual leave of 30 calendar days. At least 15 days must be used within the year and the remaining can cash out. 15 of the 30 days entitlement may be divided into two periods and the remainder is to be taken in at least one-day increments. Domestic workers are entitled to 15 days of paid annual leave.
An employee cannot take annual leave alongside any other leave entitlement such as maternity leave, and sick leave.
PTO carryover
In Peru, statutory annual leave does not freely carry over. Vacation must be taken within the year it’s due, but accumulation is allowed only up to 2 consecutive periods by agreement.
Note:
- SGF does not allow carryover
Public Holidays
The Government decides each year if public holidays falling on weekends are moved to a weekday in lieu.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 2 April 2026 | Thursday | Maundy Thursday | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 7 June 2026 | Sunday | Battle of Arica and Flag Day | Standard holiday |
| 29 June 2026 | Monday | Feast of Saints Peter and Paul | Standard holiday |
| 23 July 2026 | Thursday | Air Force Day | Standard holiday |
| 28 July 2026 | Tuesday | Independence Day (Patriotic Holidays) | Standard holiday |
| 29 July 2026 | Wednesday | Independence Day Holiday (Patriotic Holidays) | Standard holiday |
| 6 August 2026 | Thursday | Battle of Junín | Standard holiday |
| 30 August 2026 | Sunday | Saint Rose of Lima | Standard holiday |
| 8 October 2026 | Thursday | Battle of Angamos | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 9 December 2026 | Wednesday | Battle of Ayacucho | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
In Peru, employees are entitled to 365 days of paid sick leave. The employer compensates the first 20 days of sickness at 100% salary and the remaining 245 days are paid initially by the employer at 70-80% and then the social security reimburses this sum.
Maternity Leave
Female employees are entitled to 98 days of paid maternity leave; 49 days before the birth of the child and 49 days following the delivery. In the event of multiple or complicated births, the leave can be extended by 30 days.
The National Health System (EsSalud) or the Private Health System (Entidades Promotoras de Salud or EPS) compensates maternity leave. To qualify for maternity benefits, the employee must have completed three months of service during the six months before leave.
Mothers also receive 30 days of paid adoption leave following the adoption of a child until the age of 12 years old.
Paternity Leave
The father/partner is entitled to 10 days of paid paternity leave after the child’s birth; the entitlement increases to 20 days of leave in the case of a complicated or premature birth.
Parental Leave
There are no provisions in the law regarding parental leave.
Other Leave
There are no provisions in the law regarding additional statutory leave.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason for termination. Employees should receive at least six days’ written notice so that they can respond or prove their capability within the company. The employer must provide the written termination to both the employee and the trade union. Employees dismissed without cause are typically entitled to severance pay of up to 12 months.
| Salary payment interval / date | Final payment on termination | Bank account/payment-method requirement |
|---|---|---|
| Employees are typically paid monthly, usually at the end of each month. | Upon termination, all earned wages, accrued benefits (e.g., vacation), and any required bonuses must be paid. | Wages must be paid in the national currency (Sol). Bank transfer is common and widely used in practice, and some guides state payments are typically made into bank accounts. |
Notice Period
- For fixed-term agreements, employees do not require notice upon contract expiration.
- Employee resignation: An employee who wishes to resign typically must give the employer a notice period of at least 30 calendar days.
- Employer termination: If an employer wishes to terminate an employee, the notice period generally required is also 30 calendar days.
- In case of dismissal due to employee conduct, a letter outlining the charges should be sent to the employee. The employee must be given at least six calendar days to submit a written defense.
Severance Pay
There is no statutory severance entitlement, but an indemnity is payable in the event of unfair dismissal (ie, where the company does not have a prescribed legal ground to dismiss employees).
In the event of unfair dismissal, employees are entitled to receive a legal indemnity in the amount of: 1.5 times their monthly remuneration for each year of service if the employee is on an indefinite employment contract. Periods of time less than 1 year must be paid proportionally 1.5 times their monthly remuneration for each month remaining until the end of the fixed-term contract, if applicable. In both cases, such indemnity may not exceed 12 monthly salaries.
Probation Period
In Peru, probation periods are outlined in the employment contract. Typically, the probational period lasts for three months.
The probationary period may be extended for skilled workers or employees in positions of trust to six months and one year for managerial roles.
Immigration
A foreigner wishing to work in Peru must complete the new TUPA (Texto Unico de Procedimientos Administrativos; Single Text of Administrative Procedures) process.
Applying for a Peruvian resident work visa requires the following:
- Interpol clearance – Ficha de canje internacional
- Receipt for the paid application fee
- Receipt for the paid application fee for changing to a resident visa
- Passport
- Legally signed and by Labour Ministry approved work contract with a duration of at least 12 months
- Police clearance certificate, criminal record, and judicial matters check issued in the country of origin and if the applicant lived in another country before coming to Peru, in the land of residence covering the last five years *
- SUNAT registration including RUC (Peruvian tax number) showing the employing company is active
- Company registration of the employing company showing the legal representative
- Sworn statement of the legal representative of the company declaring that he oversees hiring personnel and why he needs to employ a foreigner
*For the past years, a sworn statement stating that the foreigner has a clean criminal record and no previous convictions was enough to satisfy Migraciones. However, the new Tupa and Supreme Decree now state that a police clearance certificate, criminal record, and judicial matters check issued in the country of origin and if the applicant lived in another country before coming to Peru, in the country of residence covering the last five years is required. “Antecedentes Policiales, Penales y Judiciales.”
Once this is complete, the foreigner will receive confirmation that your work visa is approved, payment has been made and the person is now registered in the foreigner database and issued the carné.
Remote Work
The Government of Peru passed legislation on remote work aiming at recognizing teleworking as a valid way of carrying out work. This legislation states that teleworkers and onsite employees must have the same rights and that the employer and employee should agree on the provisions of teleworking in an employment agreement.
Such agreement must be stored in a digital medium and must include information on the teleworking period, frequency (total or partial), the work schedule, applicable digital platforms and technologies, communication and supervision, mechanisms, notice period for the employee to attend in person to employer’s premises and the teleworker domicile.
Unless agreed otherwise between the parties, employers should provide necessary work tools and bear the cost of electricity.
Employers have a duty to ensure the safety and health of their employees at work. Therefore, employers should inform teleworkers of all the risks that may arise from their work duties.
Teleworkers should allow their employer to visit their remote workplace. Teleworker may instead complete a self-examination of their workplace as authorized by the Peruvian Ministry of Labor.
Unless otherwise agreed between the parties, the teleworker must comply with a work schedule.
Employers must respect teleworkers’ right to digitally disconnect after work and their right to privacy of communications. However, teleworkers must be available to their employer during the working day and fully comply with their work obligations.
Prior notice in writing and agreement of the employer and the teleworker is needed if any of them wants to reverse the teleworking arrangement.
VAT
General
The standard rate of VAT in Peru is 18.00%.
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Payroll and Benefits Guide
in Peru
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 2 April 2026 | Thursday | Maundy Thursday | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 7 June 2026 | Sunday | Battle of Arica and Flag Day | Standard holiday |
| 29 June 2026 | Monday | Feast of Saints Peter and Paul | Standard holiday |
| 23 July 2026 | Thursday | Air Force Day | Standard holiday |
| 28 July 2026 | Tuesday | Independence Day (Patriotic Holidays) | Standard holiday |
| 29 July 2026 | Wednesday | Independence Day Holiday (Patriotic Holidays) | Standard holiday |
| 6 August 2026 | Thursday | Battle of Junín | Standard holiday |
| 30 August 2026 | Sunday | Saint Rose of Lima | Standard holiday |
| 8 October 2026 | Thursday | Battle of Angamos | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 9 December 2026 | Wednesday | Battle of Ayacucho | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Is their a limit on overtime work?
Hi Jaimee, employees should only work a maximum of 48 hours per week, and all work exceeding this should be mutually agreed on between the employer and employee.
Hi, I’m from the Netherlands and I’m going to do my internship in Peru for 4 months. Herefore I’m getting an ‘internship compensation’. Do I also need a working VISA then? And do I need to pay Peruvian or Dutch taxes?
We recommend reaching out to the institute who is sponsoring this internship in order to understand the set up and conditions.
In Peru do employees have to complete a Vacation request form? Does it has to be in writing or can it be electronically submitted?
Employees should submit vacation requests in writing. However, employers have the flexibility to establish any system or process for monitoring such requests. It’s advisable for employees to follow the guidelines provided by their employer.
Are public holidays included in 30 day Vacation alloted
Public holidays are generally in addition to the 30 days vacation.
Hi, On a project requirement I have to work from Peru for an year from Jun 2025. May I know how much cost would be required per month for medium range life style for 1 person. Including Rent, expats Tax and Pension deductions and all other expenditures.
We don’t have insight that we can shared on cost of living. However, there are many websites one can use which estimates these types of costs (e.g. https://www.expatistan.com/cost-of-living/country/peru)