Overview

Capital
Lima
Currency
Peruvian Sol

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Taxes

Employer
9% - Health Insurance
Employee
13% - Pension Fund
0-19,750 PEN - 8%
19,751 - 79,000 PEN - 14%
79,001 - 138,250 PEN - 17%
138,251 - 177,750 PEN - 20%
+177,751 PEN - 30%

Minimum Wage

General
Minimum wage is 850 PEN per month

VAT

General
VAT is 18% standard rate.

Mandatory Benefits

Pension Fund
Employers are not obligated to contribute.
Employees are obligated to contribute 13% of their wages.
Social Security
1) Health Insurance: 9%
1) Pension Contribution: 13%

Payroll

Payroll Tax
There is no payroll tax in Peru.

Termination

Termination Process
Written notice must be provided with at least 6 days notice.
Advance Notice
Employees must provide 30 days written notice.
Severance Pay
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.