Hire in Peru

Peru is the third-largest country in South America, after Brazil and Argentina. It is made up of a variety of landscapes, from mountains and beaches to deserts and rainforests. The world’s largest rainforest, the Amazon, covers nearly half of Peru. Peru is bordered by Bolivia, Brazil, Chile, Colombia, and Ecuador. It covers an area of approximately 1,285 million square kilometers. Services account for 59.9% of Peruvian GDP, followed by industry (32.7%) and agriculture (7.6%).

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Peru.

peru

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Hire in Peru through an

EOR

Easily onboard your remote talent in Peru through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Peru

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Cost of living index

$ (116 of 139 countries)

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Currency

Sol (S/, PEN)

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Payroll frequency

Monthly

Basic facts

Peru is the third-largest country in South America, after Brazil and Argentina. It is made up of a variety of landscapes, from mountains and beaches to deserts and rainforests. The world’s largest rainforest, the Amazon, covers nearly half of Peru. Peru is bordered by Bolivia, Brazil, Chile, Colombia, and Ecuador. It covers an area of approximately 1,285 million square kilometers. Services account for 59.9% of Peruvian GDP, followed by industry (32.7%) and agriculture (7.6%).

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Peru.

Capital

Lima

Official language/s

Spanish, ‎Quechua‎, ‎Aymara

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Population

34.35 million (2023 est.)

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VAT - standard rate

18%

The holidays mentioned below are valid for the year 2025.

January 1New Year's Day
April 17Maundy ThursdayMovable
April 18Good FridayMovable
May 1Labor Day
June 29Feast of St Peter and St Paul
July 23Air Force Day
July 28Independence Day
July 29Independence Day Holiday
August 6Battle of Junín
August 30Santa Rosa de Lima
October 8Battle of Angamos
November 1All Saints' Day
December 8Immaculate Conception
December 9Battle of Ayacucho
December 25Christmas Day

The approximate time for sharing the contract with an employee in Peru is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Preoccupation medical evaluations must be done according to labor risks that workers may be exposed to.
  • Remote work is regulated by Law 31572 which mandates employers to provide equipment and internet access service or assign economic compensation for the provision of these to the teleworker, in addition to compensation for electricity consumption.

  • There are several modalities for fixed-term contracts whose terms should not exceed five years.

  • There is no severance of pay under Peruvian law but dismissal without cause and non-compliance to objective dismissal processes attract damages of up to 12 monthly salaries.

The Peruvian social security system offers protection to its citizens by providing benefits in case of:

  • Sickness
  • Maternity
  • Accidents and death
  • Disability and retirement
Benefits Employer Contribution
Health Insurance 9%
Compensation for Time Services (CTS) 8.33% (paid twice a year)
Family Allowances 10% of the minimum wage (applicable to employees with children below 18 years of age)

Working Hours

An employee’s normal working hours per day must not exceed eight hours per day or 48 hours per week. In case of work performed on a continuous timetable, the worker is entitled to a rest break of at least 45 minutes to have meals during the working day. 

Overtime

An employee is entitled to overtime for work that exceeds eight hours per day or 48 hours per week and is compensated with a minimum surcharge of 25% over the hourly value for the first two hours. For every extra hour, the surcharge cannot be less than 35% per hour.

 

Probation Period

The probation period is three months, at the end of which the worker reaches the right to protection against arbitrary dismissal.

The parties may agree to extend the probationary period where the work to be undertaken requires a period of training and adaptation or where the nature of the work or responsibility entailing such extension may be justified.

Termination Notice Period

In case of resignation or voluntary withdrawal, the worker must give written notice 30 days in advance.

The employer may not dismiss for reasons related to the conduct or capacity of the worker without first granting in writing a reasonable period of no less than six calendar days so that the worker can defend themselves in writing against the charges made against them or 30 days for the worker to demonstrate their ability or correct their deficiency. In cases of flagrant serious misconduct, a notice period is not required.

Working Hours

An employee’s normal working hours per day must not exceed eight hours per day or 48 hours per week. In case of work performed on a continuous timetable, the worker is entitled to a rest break of at least 45 minutes to have meals during the working day. 

Overtime

An employee is entitled to overtime for work that exceeds eight hours per day or 48 hours per week and is compensated with a minimum surcharge of 25% over the hourly value for the first two hours. For every extra hour, the surcharge cannot be less than 35% per hour.

 

Probation Period

The probation period is three months, at the end of which the worker reaches the right to protection against arbitrary dismissal.

The parties may agree to extend the probationary period where the work to be undertaken requires a period of training and adaptation or where the nature of the work or responsibility entailing such extension may be justified.

Termination Notice Period

In case of resignation or voluntary withdrawal, the worker must give written notice 30 days in advance.

The employer may not dismiss for reasons related to the conduct or capacity of the worker without first granting in writing a reasonable period of no less than six calendar days so that the worker can defend themselves in writing against the charges made against them or 30 days for the worker to demonstrate their ability or correct their deficiency. In cases of flagrant serious misconduct, a notice period is not required.

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The Peruvian social security system offers protection to its citizens by providing benefits in case of:

  • Sickness
  • Maternity
  • Accidents and death
  • Disability and retirement
Benefits Employer Contribution
Health Insurance 9%
Compensation for Time Services (CTS) 8.33% (paid twice a year)
Family Allowances 10% of the minimum wage (applicable to employees with children below 18 years of age)