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%

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.

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%

Minimum Wage

General Minimum wage is 850 PEN per month

Payroll

Payroll Tax There is no payroll tax in Peru.

VAT

General VAT is 18% standard rate.