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Before hiring employees in Peru, employees are entitled to 98 days of fully paid maternity leave paid by the state. This can be taken in installments: 49 days for prenatal leave and 49 days of postnatal leave. Employees are also entitled to 10 days' paternity leave paid by the employer.
It’s also important for employers to know that in Peru, non-compete agreements must be limited in scope and duration. A post-contractual non-compete clause can be included in an employee’s contract, which must be for a set period of time and the employee must be compensated for that period.
We know this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform.
Get an overview of what you need to know when hiring in Peru below.
At a Glance
13th / 14th SALARY
13th and 14th salaries are paid in July and December
Good to know
- Employees in Peru are paid 13th and 14th month salaries in July and December; these are equivalent to one month's salary.
- An employee with one or more children under the age of 18 is eligible to receive an additional “household allowance,” which is a monthly payment of 10% of the monthly minimum wage. These also include children above the age of 18 who are pursuing higher education until the age of 24.
- Employees are entitled to 30 days of paid vacation leave per year. A minimum of 15 days must be taken and the other 15 can be cashed out.
In Peru, employees work eight hours per day, 48 hours per week.
The compensation for overtime hours should be agreed upon by the employer and the employee.The first two hours of overtime work cannot be compensated at a premium of less than 25% of an employee’s regular pay, and every additional hour cannot be compensated with less than 35% of the total remuneration of the employee.
The probationary period in Peru is a maximum of three months.
In case of dismissals, employees in Peru are entitled to a written notice of at least six days to allow them to respond in writing or 30 calendar days to prove their performance capability or to correct errors. There is no need for notice if the dismissal is for serious misconduct.
For resignations, the notice period for employees is 30 days.
Non-compete agreements must be limited in scope and duration. They must also include a reasonable economic compensation, to be paid after completion or termination of the employment contract.
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Paid time off
Employees are entitled to 30 days of paid vacation leave per year on completion of one year of continuous service with the same employer. A minimum of 15 days must be taken and the other 15 can be cashed out.
Employees in Peru are entitled to 20 days of sick leave in a year, paid by the employer.
In Peru, employees are entitled to 98 days of fully paid maternity leave paid by the state. This can be taken in installments: 49 days for prenatal leave and 49 days of postnatal leave.
Employees are also entitled to 10 days' paternity leave paid by the employer.
In Peru, employers must make monthly health contribution payments equal to 9% of the total compensation paid to an employee. Employers must also make pension contributions of 13%.
For residents of Peru, income taxes are imposed on a scale of brackets, ranging from 8% to 30% based on an employee’s salary. Non-residents are taxed a flat rate of 30% on their gross Peruvian-source income.
Termination of employment
Permanent employees in Peru can only be dismissed for a just cause or through voluntary resignation.
Employees being dismissed without cause are entitled to severance pay of up to 12 months' salary, depending on their position.
Start hiring employees in
Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast.
We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities.
With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.
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