Peru

Employment

Employees can be hired under either fixed or indefinite contracts. Fixed term contracts must be in writing and cannot extend past 5 years. Indefinite contracts can be either written or oral and is most common for locals.

Payroll

Salaries are paid monthly.

HR & Labor

Working Hours: Full time employment is considered 48 hours a week, and 8 hours a day. Anything over receives overtime payment. Overtime payments are paid at 125% for the first two hours, and each additional hour at 135%.
arrow
Minimum Working Age: Employees must be at least 15 years old. Hazardous labor can only be done by those over the age of 18.

Immigration

To work in Peru, one must obtain a work visa from the Peruvian General Docterine of Immigration and Naturalisation. This can be done upon arrival on a tourist or business visa.

Benefits

13 and 14 months salary. First one paid in the beginning of July, and the other in the beginning of December.

Minimum wage

Minimum wage is 850 PEN per month

Pension fund

Employers are not obligated to contribute.

Employees are obligated to contribute 13% of their wages.

Severance payments

Severance payments are only required for unjust dismissal. In such cases, employees are entitled to 0.5 monthly salary per year employed (up to 12 payments) in addition to 1.5 times monthly salary.

Advance notice

Employees must provide 30 days written notice.

Termination procedure

Written notice must be provided with at least 6 days notice.

Sick Days

The length is dependent on the employees ability to work. The first 20 days are covered by the employer, and following for 11 months social security covers pay.

Vacation Days

Employees are entitled to 30 days leave annually.

Public Holidays

There are 11 public holidays. Employers are not obligated

VAT

VAT is 18% standard rate.

Payroll Tax

There is no payroll tax in Peru.

Social Security

1) Health Insurance: 9%

1) Pension Contribution: 13%