Employer of Record in Peru
Hire talent in Peru with an EOR
Peru has become an increasingly attractive destination for global companies expanding into South America. Its skilled talent pool, cost-effective labor market, and growing economy offer exciting expansion opportunities. But for companies without a legal entity in Peru or the expertise to navigate the country’s labor laws, payroll processes, and tax regulations, tapping into the market can be complicated.
What is an employer of record?
An employer of record (EOR) is a third-party partner that legally employs talent on behalf of a business. While the business oversees day-to-day responsibilities, the EOR handles back-end tasks like payroll, tax withholdings, benefits administration, and employment contracts.
Pebl’s Employer of Record (EOR) solution in Peru enables companies to hire in Latin America with confidence—tapping into the country’s workforce while minimizing risk and administrative burden. As the legal employer, Pebl helps businesses hire, pay, and manage supported employees in Peru compliantly and efficiently—without the need to set up a local entity.
Employment Guide to Hiring in Peru
Explore the topics below to learn everything you need to know about hiring employees in Peru.
Hiring in Peru: Key employment requirements
Employee agreements
Employment contracts must be written and include specific details, such as job duties, compensation, and work schedules. Fixed-term agreements are allowed under specific conditions and must be registered with Peru’s Ministry of Labor.
Probationary periods
Peruvian law allows a standard three-month probation period, which may be extended up to one year for technical or managerial roles, provided it is clearly stated in the employment contract.
Working hours
The legal work week in Peru is 48 hours, typically divided into six eight-hour days. Overtime must be compensated, with the first two hours paid at 25% above the base rate, and additional hours at 35% above.
How an EOR helps international employers hire in Peru
Pebl’s employer of record services in Peru simplify cross-border hiring with:
- Localized employment contracts
- Compliant onboarding and offboarding
- On-the-ground HR support
- Guidance on Peruvian labor law
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Payroll in Peru
Payroll cycles
Salaries must be paid monthly, typically on the last business day of each month. Employers are responsible for managing deductions, contributions, and statutory payments.
Minimum wage and wages
As of 2025, the minimum monthly wage in Peru is PEN1,050 (Ministerio de Trabajo y Promoción del Empleo). Salaries must be paid in Peruvian soles and reflect the role’s responsibilities.
Bonus payments
Employees receive two mandatory bonuses each year—one in July and another in December—each equal to one month’s salary. Employers also contribute to CTS (Compensación por Tiempo de Servicios), a severance savings fund, in May and November.
How an EOR supports payroll
Pebl manages every aspect of Peruvian payroll, from accurate salary payments and tax withholdings to bonus administration and CTS contributions. The platform also simplifies invoicing and currency conversion where needed.
Tax obligations in Peru
Income tax and due dates
Income tax is withheld monthly and remitted to SUNAT, Peru’s tax authority. Tax brackets are progressive, ranging from 8% to 30% depending on income (SUNAT).
Health insurance
Employers must contribute 9% of the employee’s salary to EsSalud, the national healthcare system. Some employers offer private health coverage as a supplemental benefit.
Pension contributions
Peru offers two pension systems: the state-managed ONP and private AFP (Administradoras de Fondos de Pensiones). Contributions are mandatory, and Pebl ensures compliance with the selected plan.
How an EOR supports tax compliance
Pebl takes care of all income tax calculations, withholdings, and remittances. Our platform also provides clear reporting to help companies budget for payroll and tax liabilities.
Calculate payroll contributions in Peru
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Leave Policies in Peru
Annual leave
Employees earn 30 calendar days of paid vacation each year after completing 12 months of continuous service.
Parental leave
Maternity leave includes 98 paid days, funded by EsSalud. Fathers are entitled to 10 paid days, or up to 20 days in special cases.
Sick leave
The employer covers sick leave for the first 20 days. After that, EsSalud provides coverage if documentation is submitted correctly.
Public holidays
Peru observes 12 national holidays, including Independence Day (July 28–29) and Christmas (December 25). Regional holidays may also apply, depending on the location.
How an EOR simplifies leave management
Pebl’s platform automates leave tracking, manages documentation for EsSalud reimbursement, and ensures compliance with national and regional holidays.
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Employee benefits in Peru
Statutory benefits
Peruvian law mandates:
- EsSalud health insurance
- Pension contributions
- Paid vacation
- Holiday and severance bonuses
Supplemental benefits
Many companies offer additional perks, such as:
- Private health coverage
- Meal vouchers or stipends
- Internet and phone allowances
- Remote work flexibility
How an EOR enhances benefits administration
Through our Global Benefits solution, Pebl provides employers with access to competitive supplemental benefits packages tailored to local expectations, enabling companies to stand out in Peru’s job market.
Terminations in Peru
Notice periods
Dismissals for misconduct require six days’ written notice. Terminations for economic reasons require 30 days’ notice, including documented justification.
Severance pay
Unjustified dismissal requires payment of 1.5 months of salary per year of service, subject to legal caps. Documentation is key to avoiding penalties.
How an EOR helps with terminations
Pebl supports compliant offboarding by:
- Drafting termination letters
- Advising on legal grounds for dismissal
- Calculating and processing severance
- Maintaining required employment records
FAQ
Yes. An EOR like Velocity Global allows businesses to legally hire in Peru without creating a local entity.
Get expert help hiring in Peru
We’re ready to answer your questions about:
- Hiring and paying talent without an entity
- Maintaining compliance in Peru
- Partnering with an EOR and how it works
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