Salary Calculator
Peru

Native Teams’ salary calculator for Peru helps employers estimate the salary their employees will receive while accounting for mandatory deductions and tax regulations.

Simply enter the employee’s gross salary, and the calculator will deduct social security contributions, income tax, health insurance, and pension contributions according to Peruvian regulations. The final result provides the net salary, ensuring accurate payroll calculations and compliance with local tax requirements.

The total costs of salary in Peru involve components such as income tax and social security contributions that must be paid by both the employer and the employee.

The gross salary represents the base salary before any deductions and is used to calculate taxes and contributions. Employers must contribute 9% of the employee’s gross salary for public health insurance, while employees contribute 13% of their salary to a pension fund. Employees in Peru are also subject to a progressive income tax system, where the tax rate is based on the level of their earnings. 

Every employee in Peru must pay income tax, which is deducted by the employer and paid to the tax authorities. The progressive income tax rates are as follows:

-Up to 5 UIT (tax units): 8%
-From 5 to 20 UIT: 14%
-From 20 to 35 UIT: 17%
-From 35 to 45 UIT: 20%
-Over 45 UIT: 30%

*UIT refers to “Unidad Impositiva Tributaria” - a tax reference unit that changes annually. 

Employers in Peru are required to provide mandatory benefits for their employees. These benefits include social security contributions for healthcare and pension, which must be submitted by the employer to the relevant local authorities.

In addition to this, employees in Peru must also receive paid annual leave, public holidays, sick leave in cases of illness or injury, maternity and paternity leave, and others.

Finally, employers in Peru must provide 13th and 14th-month salaries, as well as family allowances for the employees who qualify. 

Besides mandatory benefits required by Peruvian labour law, many employers offer additional benefits for their employees to increase satisfaction and attract top talent to their companies. 

In addition to contributions to the national healthcare system, many employers provide private health insurance plans to offer their employees access to a broader network of healthcare services and providers. Some employers may provide additional life insurance policies for greater financial security for employees and their families. 

Finally, many employers also provide meal vouchers or allowances to subsidise the cost of daily meals, transportation allowances to assist with commuting costs, professional development opportunities to enhance employees’ skills, wellness programmes to promote employees’ well-being, and other extra benefits. 

In Peru, the term gross salary refers to the total amount an employee earns before any deductions, including taxes and social security contributions. This is the amount which is agreed upon between the employer and the employee in the employment contract.

The net salary is the actual amount the employee takes home after all the deductions are applied, including pension contributions, health insurance, and income tax. 

The salary calculator for Peru works by taking the gross salary, applying the necessary deductions, and calculating the final net salary that the employee receives for every month of work.