Peru offers a growing Andean workforce with two extra annual payments and a deposited severance system. All-in employer cost runs around 1.2x the gross salary. Here is what to know before your first Peruvian hire.
Employment runs under the Labour Productivity and Competitiveness Law, with mandatory health cover (EsSalud), twice-yearly gratifications, and a semi-annual severance deposit (CTS).
The monthly minimum is about PEN 1,025 in 2024*, revised periodically.
Monthly payroll, plus two mandatory gratifications (in July and December) that make up the 13th and 14th payments.
Around 13 public-holiday days a year, several tied to the church calendar.
Written contracts are standard. Probation is three months (longer for skilled or management roles).
The core employer contribution is EsSalud health cover at 9%, and once the gratifications and the CTS severance deposit are counted, the all-in load reaches roughly 20%.
Compensation for time of service (CTS) is deposited into the employee's account twice a year and acts as a savings-based severance.
Employees contribute to a pension fund (public or private) and pay income tax, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
30 calendar days of paid leave a year after one year of service.
98 days of maternity leave, funded through EsSalud.
Paid by the employer for the first days and then by EsSalud for longer absences.
Paid paternity leave and leave for family events are provided by law.
Dismissal must cite a valid cause and follow a procedure. An arbitrary dismissal triggers compensation.
Compensation for arbitrary dismissal is about 1.5 months' pay per year of service, capped at 12 months, on top of accrued CTS.
Three months, extendable for skilled or management roles, with simpler termination during it.
A worker on service receipts who works like an employee can be reclassified, with back contributions and benefits.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Peruvian employment contract, payroll, EsSalud, and CTS, handled. One invoice, flat $399 per month.