Hiring guide in Peru

What should I know about hiring in Peru?

When you are looking to hire in Peru, it is vital to know the local laws and regulations. These rules are in place for the safety of both your company and your employees, so it is imperative that you follow them. 

In addition, all newly hired employees in Peru must be provided with a written employment contract in accordance with the country’s legal framework. Salary, benefits, and other terms of employment should all be specified in this contract.

A minimum wage, safe working conditions, and protection from discrimination are all protected by Peruvian law for all workers. Fine or other penalties may be imposed on an employer who is found to be in violation of these laws.

Why is Peru a good choice for finding remote employees?

There are many reasons why Peru is an excellent choice for finding remote employees. First, the country has a large population of educated and skilled workers, many of whom are fluent in English. In addition to its advanced technological infrastructure, Peru boasts a robust internet connection and postal services. 

Therefore, it is simple for businesses to implement flexible work arrangements for their Peruvian staff. The country is also politically stable and has a good business environment. Because of this, foreign businesses are increasingly interested in establishing permanent bases in Peru. 

Last but not least, Peru is home to an incredibly diversified population and culture. This makes it an interesting and exciting workplace, and employees from Peru can bring a unique perspective to your company.

How can Native Teams help you hire in Peru

If you’re looking to hire the best candidates, working with a team that knows the local market and can help you navigate the recruitment process is essential. One approach that may prove effective in such a situation is collaborating with Native Teams. With our employer of record services, we can assist you with hiring new employees, managing their pay, taxes, and benefits, and ensuring general compliance with Peruvian law. Legal compliance is essential for every successful organization, and having Native Team on your side may help you do that.

 Hire your first Peruvian employee with Native Teams.

Legal requirements for hiring in Peru

Minimum wage

Contributions & taxes

Employer tax

The National Health System (RPS) requires employers to contribute 9% of payroll; however, employers can offset this cost by providing supplemental health insurance to their workers.

Corporate tax

Peru has a corporate tax rate of 29.50%.

Employee tax

The range of the employee payroll contribution is 12.50% to 13.00%.

Financial provision for retirement (13% for those covered by the National Pension System, or around 12.5% for those covered by the Private Pension System).

Income tax

It is calculated as follows: 

1. 8.00%: Up to 5 UIT;
2. 14.00%: From 5 UIT to 20 UIT;
3. 17.00%: From 20 UIT to 35 UIT;
4. 20.00%: From 35 UIT to 45 UIT;
5. 30.00%: More than 45 UIT.

To calculate the salary and taxes in Peru please click here.

Payroll cycle

Employees in Peru typically receive their paychecks once a month.

Is there a 13th salary in Peru?

In Peru, 13th- and 14th-month payments are required. The employer must pay an additional month’s compensation twice a year, in July and December.

Labor rules

Probation period

The minimum probation duration is 30 days, while the maximum probation period is 3 months. 

Notice period 

Employees in Peru have the right to get at least six days’ written notice before they can be terminated to react in writing or 30 calendar days to demonstrate their performance capability or fix errors. If the reason for the termination is substantial misconduct, then notice is not required. Employees must give 30 days’ notice if they wish to resign.

Severance period

Severance pay is owed to employees in Peru in the event of unfair dismissal. The maximum severance pay is 12 months’ salary or 45 days’ pay for each year of service.

Working hours

Workers put in an average of eight hours per day and no more than 48 hours each week. Both the company and the worker need to come to an understanding about the payment of overtime.

Leave and benefits

Public holidays

There are 12 official holidays in Peru:

1. New Year’s Day
2. Maundy Thursday
3. Good Friday
4. Easter
5. Labor Day
6. Saint Peter & Saint Paul
7. Peruvian Independence Day (2 day holiday)
8. Saint Rose of Lima
9. Battle of Angamos
10. All Saints Day
11. Immaculate Conception
12. Christmas

Sick leave

In Peru, workers have a right to 20 days of paid sick time per year.

Maternity leave & paternity leave

Paid maternity leave for female employees is 98 days long, including 49 days before and 49 days after giving birth. In addition, there is a 30-day grace period for numerous or complicated births. The father or partner of a newborn is usually given 10 days of paid paternity leave, increasing to 20 days in the case of premature or difficult birth.

Other leave

Adoption leave

An employee who adopts a kid is eligible for 30 days of paid leave, beginning on the day after the child is adopted to the employee, provided that the child being adopted is under 12. Within 15 calendar days after the child’s birth, the employee applying for adoption must make this information known to their employer.

What are the minimum vacation days?

Every employee is entitled to 30 days of paid vacation per year; 15 days may be split between two separate periods, and the remaining time must be taken in increments of at least one day.

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents

Which documents do you need?

To apply for a visa/work permit in Peru, the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in Peru?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.