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Peru is emerging as a fast-growing remote work hub in Latin America. With a large pool of young, skilled professionals, competitive labour costs, and strong business ties across the Americas, Peru is an attractive destination for international employers. The country’s evolving digital infrastructure and multilingual talent make it ideal for global teams and remote hiring.
Peru offers a cost-effective and well-regulated employment landscape, ideal for businesses expanding in Latin America. Employers must follow local laws around salaries, social security contributions, and contract rules.
Get details on Peru’s employment laws, tax obligations, and cost structures in our complete hiring guide before expanding.
Employment contracts in Peru must be in written form and comply with local labour regulations. They should clearly define job roles, compensation, benefits, probation period, and termination terms. Both indefinite and fixed-term contracts are recognised.
Notice periods: Typically 30 days, but varies depending on the reason for termination.
Termination of employment: Must follow due process, including valid justification for dismissal, advance notice, and compensation if required.
Want to learn more about employment contracts in Peru? Get our full template now!
Peruvian labour law mandates a wide range of employee benefits. Offering both the required and additional perks helps businesses stay competitive.
Mandatory benefits: Social security (health insurance, pensions, and workplace accident insurance), bonuses, Compensation for Length of Service (CTS), severance pay, etc
Common perks: Family allowances, transportation allowances, meal allowances, shift differentials, private health insurance, professional development, flexible work arrangements.
Leave policies: Annual leave, sick leave, maternity leave, paternity leave, and public holidays.
Want to learn more about all the employee benefits available in Peru?
Peru’s tax system includes both employer and employee obligations. Employers are responsible for withholding income tax and contributing to healthcare and pensions.
Employers in Peru must pay employees monthly according to the employment contract. All mandatory contributions, declarations, and tax payments must also be made on time.
Salary payment deadline: Typically monthly, per contract agreement.
Taxes and contributions payment deadline: Monthly remittance of income tax, health insurance (EsSalud), and pension contributions.
Payroll declarations deadline: Monthly submission detailing salaries, taxes, and contributions.
Payroll currency: Peruvian Sol (PEN)
Peruvian employment law is governed by the country’s Labour Code. It outlines the legal framework for employment, including contract types, working hours, benefits, and employer obligations.
Minimum wage: PEN 1,130 per month
Probation period: Up to 3 months
Using EOR services in Peru allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:
Using PEO services in Peru provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Peru but need support to manage their workforce operations, including:
Native Teams provides a payroll calculator adjusted per Peru’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in Peru with our localised calculator. Designed to meet all payroll and compliance requirements.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Last update: August 8, 2025
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Freelancers and gig workers in Peru are generally considered self-employed and are responsible for managing their own taxes and social security contributions. As a client, you are not required to make contributions on their behalf.
However, to avoid potential misclassification, it’s important that the working arrangement does not resemble an employer-employee relationship. Always ensure that you have a clearly defined contract that outlines the scope of work, deliverables, payment terms, and other key conditions.
