You’re scrolling LinkedIn one day, and there’s this brilliant software developer who just solved the exact problem your team has been wrestling with for months. She’s based in Lima, speaks perfect English, and her portfolio rivals your star senior engineer. Not only that, but she costs a fraction of what you’d pay someone with half her skills in San Francisco.
What you’re seeing is that Peru has quietly become South America’s best-kept hiring secret. Between 2000 and 2012, the number of foreigners who became residents there jumped by 600%. That’s not just people moving for the weather. By June 2025, the country’s unemployment rate dropped to 8.6%, signaling a tightening job market where the best talent has options.
Meanwhile, international companies are discovering what local businesses already knew: Peru’s workforce combines technical expertise with cost efficiency in ways that make CFOs do double-takes at budget projections. Here, we explore the nuances of hiring in Peru and how to successfully tap into this South American talent pool.
Peru’s evolving labor market at a glance
Peru’s job market is experiencing a quiet transformation that most international headlines miss. Not only does the unemployment rate continue to plummet, but the employment rate rose to 93.90% by July 2025. What these numbers really tell you is that Peru has moved past the post-pandemic recovery phase and into genuine growth territory.
The structural shifts happening right now are reshaping how work gets done across the country. Peru’s service sector now employs nearly 60% of the workforce, with technology and IT driving much of that growth. Software programmers, cybersecurity specialists, and data analysts top the list of most in-demand professions.
These aren’t just bodies filling seats. These are professionals who understand global business practices because they’ve been working with international clients for years, often remotely, long before the rest of the world figured out that geography doesn’t determine genius.
Recent regulatory changes have also modernized the employment landscape in ways that benefit international employers. New teleworking laws enacted in 2023 and updated in 2024 officially recognize remote work as legitimate employment, whether workers are based inside or outside Peru.
According to César Puntriano, Principal Partner at L&E Global, “The law recognises teleworking as a valid way to carry out work, inside or outside the country, providing that the teleworker enjoys the same rights as the personnel who work in person.” This legal framework means you can hire Peruvian talent without worrying about compliance issues that plague remote work arrangements in other Latin American countries.
What makes Peru particularly compelling for global hiring is the combination of factors that rarely align so perfectly. You get access to a young, educated workforce in a country with stable political institutions and strong business infrastructure. The time zone overlap with North American operations means your Peruvian team members can join your 3 p.m. EST calls without setting alarms for midnight.
And there’s a warm, fuzzy bonus. You’re hiring in a market where top talent still gets genuinely excited about working with innovative international companies, instead of treating your job offer like just another Tuesday.
How to hire employees in Peru
Hiring in Peru often comes down to two clear paths. Pick the route that matches your speed, budget, and comfort with local bureaucracy.
Establishing a local legal entity
This is the classic playbook. You incorporate a subsidiary or branch, register the company name with SUNARP, open a Peruvian bank account, and secure a tax ID from SUNAT.
Local status lets you hire directly and shape internal policies. It does require two shareholders, a Peruvian legal representative, and strict observance of labor rules that cap foreign staff at 12% of total headcount and 30% of payroll.
Hiring through an employer of record (EOR)
Or you can partner with an employer of record that acts as the legal employer while your team directs the work. As an established EOR in Peru, Pebl facilitates this global growth quickly and seamlessly.
EOR providers issue compliant contracts, run payroll, handle taxes, and manage work visas under Peru’s telework framework. That means your new hire can start within weeks without any corporate registration. Because staff sit on the EOR’s books, the foreign-worker caps fall on the provider, keeping your liability low.
Understanding employment contracts in Peru
Here’s where things get refreshingly straightforward when hiring in Peru. You have two contract types: indefinite-term (which most companies use) and fixed-term contracts that max out at five years before automatically converting to permanent status. The paperwork itself requires three written copies in Spanish, though smart employers also provide English versions to avoid any confusion down the road.
The probationary period gives you a three-month window to assess fit, extendable to six months for specialized or managerial roles. During this time, either party can terminate without cause or severance obligations. Once you sign the contract, you have 15 days to register it with Peru’s Labor Administrative Authority. Miss that deadline and you risk fines that nobody wants to explain to their finance team.
What catches many international employers off guard is how specific these contracts need to be. Duration, job responsibilities, salary structure, and working conditions all require explicit documentation. This level of detail protects both parties, but it also means you cannot wing it with generic templates pulled from other countries.
Typical working hours, holidays, and leave in Peru
Peru operates on an eight-hour day with a 48-hour weekly maximum, though you can distribute those hours flexibly across the week. Most office jobs run Monday through Friday with longer daily schedules, while traditional businesses still follow the six-day pattern that includes Saturday mornings.
Overtime kicks in after those daily and weekly limits, compensated at 25% above regular rates for the first two extra hours and 35% for anything beyond that. Work on holidays or designated rest days commands triple pay, which explains why most companies prefer scheduling around Peru’s 15 national holidays rather than paying premium rates.
Annual leave in Peru is generous by global standards. “Employees in the private sector are entitled to receive 30 paid time-off days per year (calendar days rather than working days),” writes the attorneys at Olgetree Deakins. Sick leave provides 20 paid days at full salary before shifting to social security reimbursement, giving employees real protection without imposing unreasonable costs on employers.
Peruvian employee benefits and social contributions
Peru’s benefits system revolves around several non-negotiable requirements that add roughly 30% to 40% to base salary costs. The headline item is EsSalud health insurance, where employers contribute 9% of each employee’s monthly salary while workers pay nothing. This covers comprehensive medical care through Peru’s public health system.
The country’s unique Compensation for Time of Service (CTS) system operates like a forced savings mechanism for unemployment protection. Employers deposit the equivalent of one month’s salary twice yearly into secured accounts that employees can access when they leave their jobs.
Add the mandatory 13th and 14th month salary payments in July and December, plus profit-sharing requirements for companies with 20 or more employees, and you start understanding why Peruvian workers view these statutory benefits as fundamental rights rather than corporate perks.
Family allowances, pension contributions, and various other mandated benefits create a complex but predictable cost structure. The key insight for international employers is that these are not optional add-ons you can negotiate away. They are built into Peru’s social contract between employers and workers.
Payroll and taxation in Peru
Peru runs monthly payroll cycles with payments due by the last working day of each month. As of January 2025, the minimum wage increased to 1,130 PEN per month, though most skilled professionals earn multiples of that amount. Salary calculations involve base pay plus mandatory benefits, minus employee contributions for pensions and income tax.
Income taxation uses Peru’s UIT system, where one tax unit equals 5,350 PEN in 2025. The first seven UITs of annual income (37,450 PEN total) are completely tax-free, making Peru quite favorable for middle-income earners. Above that threshold, rates climb progressively, but the system remains simpler than most developed countries.
Employer payroll taxes are relatively light compared to European standards. Beyond the 9% EsSalud contribution, most other obligations, like CTS and gratifications, are employee benefits rather than government taxes. This structure keeps total employment costs predictable while ensuring workers receive comprehensive protection and benefits that would cost significantly more in private markets.
Employee vs. contractor classification
According to Peruvian labor law, worker classification follows what authorities call the “principle of reality,” which means they look at the actual working relationship rather than what your contract says on paper. This creates both clarity and risk for international employers who may assume that their contractor agreements from other countries automatically apply in Peru.
The classification tests focus on seven key factors: subordination and control, personal service requirements, integration into business operations, fixed remuneration patterns, set working hours, who provides tools and equipment, and exclusivity of the working relationship. If multiple indicators suggest employment, Peruvian authorities will reclassify the relationship, regardless of contract language, potentially triggering back pay for benefits, unpaid social contributions, and substantial fines from SUNAFIL.
You should know that Peru aggressively protects workers from disguised employment relationships. A contractor who works exclusively for your company, follows your schedule, uses your equipment, and takes direction on methodology will likely be reclassified as an employee. This means you need genuine independence in contractor relationships, not just paperwork that calls someone independent while treating them like staff.
Termination and severance in Peru
Firing someone in Peru requires just cause and a specific legal procedure that many international employers find surprisingly formal. You cannot simply decide to let someone go and expect a clean break. The process involves written charges, mandatory notice periods, and detailed documentation that labor authorities will scrutinize if the employee challenges the termination.
Here’s how lawful termination works in practice:
- Notification of charges. Send detailed written allegations with supporting evidence
- Employee response period. Allow a minimum of six calendar days for the written defense
- Employer evaluation. Review the employee’s response and all evidence
- Final termination letter. Issue a formal dismissal with an effective date and grounds
- Settlement payment. Pay all outstanding wages, benefits, and vacation immediately
Severance calculations depend on whether you follow proper procedures. Wrongful dismissal triggers compensation of 1.5 monthly salaries per full year of service, capped at 12 months’ total pay.
When you let someone go who’s on an indefinite contract, the costs add up fast. We’re talking monthly salary plus all their regular compensation—bonuses, allowances, the works. Most employers look at just the base pay and think they know what they’re in for. Then the real number hits, and it’s way higher. That’s why getting the termination process right isn’t something you can wing. It’s the difference between a clean break and a financial headache that drags on for months.
Peruvian immigration and work permits
Getting work authorization in Peru involves coordination between your company, the employee, the Ministry of Labor, and Migraciones immigration authorities. The process typically takes 30 to 90 days, though preparation often requires additional weeks to gather and authenticate required documents.
Foreign employees need either Designated Worker Visas for short-term contracts or Resident Worker Visas for longer commitments of at least 12 months. The key requirement is an approved employment contract registered with the Ministry of Labor before visa applications can proceed. All foreign-language documents must be translated into Spanish and apostilled according to Hague Convention requirements.
Once approved, employees must register with immigration authorities, provide biometric data, and get their Carnét de Extranjería, which is official Peruvian identification and proof of legal work status. Employers have to report any changes in employment status and make sure work visas are renewed before expiration. The paperwork never stops, but it won’t bury you either. You just need someone staying on top of immigration deadlines—because the authorities are strict about those. Miss a deadline, and you’ll hear about it.
Hire in Peru with Pebl
At Pebl, we make hiring in Peru fast and frictionless for your expanding team. Our global EOR services span 185+ countries so that you can onboard talent in days with no local entity needed. We handle payroll, benefits, and compliance while you focus on growth. Get in touch to learn more.
FAQs: Hiring in Peru
Here are the answers to your most pressing questions about hiring in Peru. These come up constantly in our conversations with international employers.
What jobs are in demand in Peru?
Technology roles dominate Peru’s job market in 2025, with software developers, cybersecurity experts, and data scientists leading demand. The tech sector has seen a 60% surge in hiring needs, while traditional industries like engineering, healthcare, and business administration also face skill shortages. Data scientists can earn up to US$108,000 annually, while software engineers average up to US$35,600. AI specialists, cloud computing professionals, and machine learning engineers are particularly sought after as Peru’s digital transformation accelerates.
What is a good salary in Peru?
For Peruvians working remotely for foreign companies, “good” means something closer to global market rates than local ones. Job-board data show an average remote salary of about US$46,000 per year, with most listings landing between US$3,800 and 6,200 a month (roughly US$45,000–75,000 annually). Senior engineers and operations managers can top US$100,000 a year or even US$16,700 per month in rare high-end offers. By contrast, the average on-site wage in Peru is around US$650 a month, so remote pay at these levels places workers firmly in the country’s top income tier.
Can I hire Peruvian employees without a local business entity?
Yes, you can hire Peruvian employees without establishing a local entity by choosing an employer of record partner. The EOR acts as the legal employer while you direct day-to-day work activities. They handle payroll, benefits, tax compliance, and employment contracts on your behalf. This way, you can onboard talent within weeks, rather than the months typically required for entity setup. EOR services also navigate Peru’s complex labor laws and foreign worker restrictions, making international hiring straightforward and compliant.
Does Peru offer a nomad visa?
Peru does not currently offer a specific digital nomad visa program like some other Latin American countries. However, Peru does provide Temporary Work Visas for short-term employment and Resident Work Visas for longer commitments, both requiring employer sponsorship. Foreign nationals can also enter Peru as tourists and stay up to 183 days per year without a visa, though they can’t legally work during this period. Remote workers who work for foreign companies and want to stay long-term in Peru should get legal work authorization through their employer.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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