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 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.
*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.