Peru at a glance
Taxes in Peru
Employer Contributions
Total employer contributions: ~9%
| Contribution Type | Rate |
|---|---|
| EsSalud (public health insurance) | 9% |
Employers may offer private health insurance (EPS); up to 25% of EPS premiums can be credited against EsSalud contributions.
Total employer contributions: ~9%
| Contribution Type | Rate |
|---|---|
| EsSalud (public health insurance) | 9% |
Employers may offer private health insurance (EPS); up to 25% of EPS premiums can be credited against EsSalud contributions.
Income tax: 8%–30% | Pension: ~10%–13%
| Contribution Type | Rate |
|---|---|
| Pension — National System (ONP) | 13% |
| Pension — Private System (AFP) | ~10%–13% |
| Annual Income (PEN) | Rate |
|---|---|
| Up to 25,750 (5 UIT) | 8% |
| 25,750 – 103,000 (5–20 UIT) | 14% |
| 103,000 – 180,250 (20–35 UIT) | 17% |
| 180,250 – 231,750 (35–45 UIT) | 20% |
| Over 231,750 (45+ UIT) | 30% |
UIT (Unidad Impositiva Tributaria) is the reference unit updated annually by the government.
Employer of Record in Peru
How Remote& EOR Works
Remote& acts as the legal employer of your Peruvian workers — managing EsSalud contributions, AFP/ONP pension enrollments, payroll, tax filings, and employment contracts while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files EsSalud/AFP/income tax, administers mandatory benefits, ensures Labour Code compliance |
| Employee | Works for your company under a locally compliant Peruvian contract |
Ask Remi:
"Hire a DevOps engineer in Lima — PEN 12,000/month, starting next quarter" Remi handles everything: contract, SUNAT registration, EsSalud enrollment, AFP setup, and payroll including 13th and 14th month salary.
Benefits in Peru
- EsSalud (public health insurance): Mandatory — employer contributes 9% of gross salary
- 13th-month salary (Gratificación de Fiestas Patrias): One month's salary paid in July
- 14th-month salary (Gratificación de Navidad): One month's salary paid in December
- CTS (Compensación por Tiempo de Servicios): Severance fund — employer deposits approximately one month's salary twice per year into a regulated bank account in the employee's name
- Private health insurance (EPS)
- Performance bonuses
- Education allowance and development budget
- Flexible working arrangements
- Extra vacation days
- Wellness programs
- Additional parental leave
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 30 calendar days |
| Sick Leave | 365 days (first 20 days paid by employer; days 21–365 covered by EsSalud) |
| Maternity Leave | 98 days (49 before, 49 after birth); 30 additional days for multiple births, premature birth, or disabled child |
| Paternity Leave | 10 calendar days; up to 30 additional days for premature birth, multiple births, or severe disability |
Employment conditions
Probation
Probation cannot exceed 3 months for standard employees or 6 months for executive roles.
Trade Unions
Article 28 of Peru's Constitution guarantees workers the right to form and join trade unions, engage in collective bargaining, and strike. Unionization is constitutionally protected.
Employee Rights & Protections
Peruvian workers are entitled to: written employment contract, minimum wage compliance, equal pay, 13th and 14th month salary, anti-discrimination and anti-harassment protection, trade union rights, safe working conditions, and social media and data privacy protections.
Payments
End of employment in Peru
Employers may terminate employment for valid legal reasons or during probation. Dismissal without just cause (despido arbitrario) triggers severance obligations.
Unfair dismissal severance: 1.5 monthly salaries per year of service (prorated), capped at 12 months' salary, plus:
- Unused vacation pay
- Proportional 13th and 14th month bonuses
- CTS balance
Frequently asked questions
Four paths: run payroll from HQ for short-term arrangements; engage genuine independent contractors for project-based work; establish a Peruvian entity for direct employment; or use Remote& as Employer of Record — the fastest compliant path without a local company.