Teamed / Countries / Peru

Peru

Country overview Served by Teamed vetted partner-entity network in Peru What do you need to know to hire in Peru?

Pay a Peru employee and you owe two full-month bonuses each year, 1 month in July and 1 month in December, on top of 30 days paid leave and a separate severance-savings fund. EsSalud health runs at 9% of salary. Each guide below takes one layer.

Last reviewed 13 June 2026

Peru guide

How does Teamed handle Peruvian hiring for you?

Teamed becomes your legal employer of record in Peru for from $599 per employee per month, with zero FX mark-up in any currency.

Payroll, contracts, the two gratifications, CTS, and the full Peruvian employment stack run on one platform.

Real HR and legal experts manage every Peruvian hire, from the first offer letter to the final settlement. An actual person, not a chatbot or a pooled queue, handles your Peru team alongside EOR, contractor onboarding, and entity payroll on one platform. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice, including the July and December bonuses and each CTS deposit.

A Peruvian contractor who converts to employment keeps their record, and that same employee can graduate to your own Peruvian entity without re-onboarding. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first Peruvian hire, until it isn't.

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Peru guide Overview Hiring guide Termination Tax and payroll Cost breakdown EOR vs entity

Three things you won't find on any other Peru EOR guide

A Peru salary is paid roughly 14 times a year, not 12. Two gratifications fall due, 1 month by 15 July and 1 month by 15 December, each a full month's pay. Most EOR guides quote the base salary and skip the two extra months entirely. The cost breakdown builds them in.
CTS is a separate severance-savings fund, deposited twice a year. The employer puts the equivalent of about one month's pay into a worker's bank account across two deposits, half each in May and November (DS 001-97-TR). It sits outside payroll and outside the gratifications, so it is easy to under-budget.
The tax-reference unit (UIT) rose for 2026, which moves every income-tax band. Peru sets its labour-income brackets in multiples of the UIT, and Decreto Supremo 301-2025-EF lifted the UIT to PEN 5,500/year from 1 January 2026. The bands themselves run from 8% to 30%.

Answer.cite this

Employing in Peru adds the two statutory bonuses and CTS on top of salary. July and December each carry a full month's pay. CTS adds about one more month across the year.

Employer EsSalud health is 9% of salary. The standard week is 48 hours, normally 8 hours a day. Paid leave is 30 days after a full year of service.

Payroll runs monthly. The electronic payroll, PLAME, is filed each month to SUNAT. Peru sets a monthly minimum wage only, and the 2026 figure was not confirmed in the sources we trust here.

Teamed runs Peruvian payroll, contracts, and compliance through a vetted partner entity. This page is the map. Each guide below is the detail.

At a glance

Peru PEN
Spanish
Monthly payroll

Currency

PEN (Peruvian sol)

EsSalud (employer)

9%employer health contribution (Ley 26790)

Annual leave

30 daysafter one complete year of service

Public holidays

16 daysnational feriados (DL 713, Art. 6)

Maternity leave

98 days49 before, 49 after the birth

July bonus

1 monthFiestas Patrias, due by 15 July

December bonus

1 monthNavidad, due by 15 December

Top income tax

30%labour income above 45 UIT

Peru

per employee
per month
flat

$599

Zero FX. No setup fees. 24-hour onboarding.* The price your finance team can forecast against without surprises. *Typical once terms are confirmed. Some jurisdictions take longer where local registration or work permits apply.

Zero FX Fixed No setup fee No exit fee* 24-hour onboard

How much does it cost to hire an employee in Peru in 2026?

Budget for more than 12 monthly salaries. Peru adds two full-month bonuses and a CTS deposit on top of base pay.

Employer EsSalud health adds 9% of salary. The two gratifications add 1 month in July and 1 month in December.

The real annual cost of a Peru hire runs well above twelve payslips. The Fiestas Patrias bonus is 1 month, due by 15 July. The Navidad bonus is 1 month, due by 15 December (Ley 27735). Compensación por Tiempo de Servicios, the CTS severance-savings fund, adds about one more month's pay across two deposits in May and November. Employer EsSalud health sits at 9% of salary on top.

Teamed's Peru price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, bonuses, and benefits passed through at cost on every invoice.

The full breakdown, with the gratifications and CTS modelled in, is in the cost guide.

Read the full Peru cost breakdown

Do you need a Peruvian entity to hire employees in Peru?

No. An Employer of Record runs Peruvian payroll and contracts from day one.

Your own Peruvian entity starts to pay off as headcount grows, once local accounting and filing costs are covered by scale.

Registering a Peruvian company means incorporation, a RUC tax number, EsSalud and pension registration, and monthly electronic payroll filing through PLAME to SUNAT (SUNAT PLAME). Setup takes weeks and brings ongoing monthly returns. An Employer of Record is faster and cheaper at low headcount. Teamed runs Peruvian payroll, contracts, and compliance from day one.

The crossover point depends on Peruvian salary levels and your local accounting costs. The EOR vs entity guide runs those numbers for your headcount.

Most providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Peruvian entity on one platform under Teamed's Graduation Model, with tenure preserved.

Read the full Peru EOR vs entity guide

What changed in Peruvian employment law recently?

The 2026 tax-reference unit (UIT) rose to PEN 5,500/year, which shifts every income-tax band.

Peru sets its labour-income brackets in multiples of the UIT, so when the UIT moves, the thresholds move with it.

Decreto Supremo 301-2025-EF raised the UIT to PEN 5,500/year for 2026, up from S/5,350 (El Peruano). Labour income carries an automatic deduction of 7 UIT before any tax applies, then runs through five bands from 8% up to 30% (SUNAT, Art. 53). Because the bands are set in UIT, the higher 2026 UIT lifts every threshold.

A proposed extra night-work pay premium cleared a congressional commission in 2026 but is not yet enacted law, so it does not apply to payroll today. The tax and payroll guide covers each current band and threshold.

Read the full Peru tax and payroll guide

What benefits must you provide Peruvian employees in 2026?

The floor is 30 days of paid leave, 98 days of maternity leave, and 16 days national holidays.

Sick pay starts with the employer covering the first 20 days, then EsSalud takes over.

Paid annual leave is 30 days per complete year of service under Decreto Legislativo 713. It can drop to 15 days by written agreement, with the other 15 paid out. Peru observes 16 days national holidays, counted separately from leave. Maternity leave is 98 days in total, split 49 days before and 49 after the birth, and extends by 30 days for a multiple or disabled birth.

Sick pay starts with the employer. The company pays full salary for the first 20 days of temporary incapacity, then EsSalud pays a subsidy from day 21 (Ley 26790). Paternity leave exists in law but its current duration was not confirmed in the sources we trust here. The benefits guide covers each entitlement in full.

Read the full Peru hiring guide

What are payroll taxes in Peru in 2026?

Employer EsSalud health is 9% of salary.

Employees pay income tax on a five-band scale from 8% to 30%, after an automatic 7 UIT deduction.

The employer funds EsSalud public health at 9% of salary (EsSalud). Pension is an employee deduction, paid either to the public ONP system or to a private AFP fund. The ONP rate sits near 13 percent, while AFP rates vary by fund and were not confirmed as a single figure here, so the exact pension cost depends on the worker's choice.

Labour income tax is progressive. Each worker deducts 7 UIT first, then pays 8% on the first band, rising through 14%, 17%, and 20%, to 30% above 45 UIT (SUNAT, Art. 53). Payroll runs monthly and is filed to SUNAT through PLAME. Teamed handles every deduction and remittance. The tax and payroll guide sets out each band and threshold.

Read the full Peru tax and payroll guide

How do you terminate an employee in Peru?

Peru has no paid notice period for dismissal. Protection is monetary instead.

An arbitrary dismissal costs 1.5 months of salary per complete year, capped at 12 months.

Peru does not run a paid notice period for employer dismissal. For misconduct or capacity grounds the law gives the worker a written defence window of at least six calendar days, then dismissal can proceed (DS 003-97-TR). A resigning employee gives 30 days written notice, which the employer can waive.

A dismissal without valid cause is an arbitrary dismissal. The indemnity is 1.5 months of ordinary salary for each complete year of service, capped at 12 months. Probation runs 3 months by default and can reach 6 months for qualified or trust staff. CTS, the severance-savings fund the employer has been depositing twice a year, is released to the worker on exit. The termination guide runs the full process.

Read the full Peru termination and severance guide

What should you know before hiring in Peru?

Two things catch US buyers out. The first is that a Peru salary effectively runs to about 14 months a year.

The second is that there is no paid dismissal notice. The cost of letting someone go is the indemnity, capped at 12 months.

Plan for the bonuses and CTS from the first hire. The July and December gratifications add 1 month and 1 month, and CTS adds about one more month across the year. Together they push the true annual cost well past twelve payslips. Budget for them on day one, not at year end.

Dismissal protection is monetary, not procedural notice. There is no statutory paid notice period before letting an employee go. Instead, an arbitrary dismissal triggers an indemnity of 1.5 months per complete year of service, capped at 12 months. The hiring guide and the termination guide both cover safe process in detail.

Read the full Peru termination and severance guide

Frequently asked questions

How much does it cost to hire an employee in Peru?

Plan for more than twelve monthly salaries. Peru requires two full-month bonuses, 1 month by 15 July and 1 month by 15 December, plus the CTS severance-savings fund of about one month's pay across two deposits. Employer EsSalud health adds 9% of salary. Teamed's Peru fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide models it in full.

Can a US company hire in Peru without an entity?

Yes. An Employer of Record like Teamed runs Peruvian payroll, contracts, and compliance through a vetted partner entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 24 hours once terms are confirmed. Registering your own Peruvian company takes weeks and brings a RUC number, EsSalud and pension registration, and monthly PLAME filings to SUNAT.

What are the two statutory bonuses in Peru?

Peruvian employees receive two gratifications a year under Ley 27735. The Fiestas Patrias bonus is 1 month, due by 15 July. The Navidad bonus is 1 month, due by 15 December. Each equals one full monthly salary, so a Peru salary is effectively paid about fourteen times a year before CTS.

What is CTS in Peru?

CTS, Compensación por Tiempo de Servicios, is a severance-savings fund the employer pays into twice a year. The deposits add up to about one month's pay over the year, half in May and half in November, into the worker's own bank account. The balance is released to the employee when they leave. It sits outside payroll and outside the two gratifications.

What is statutory annual leave in Peru?

Paid annual leave is 30 days per complete year of service under Decreto Legislativo 713. It can be reduced to 15 days by written agreement, with the other 15 paid out. Peru observes 16 days national holidays, counted separately from annual leave.

How does termination work in Peru?

Peru has no paid notice period for employer dismissal. A dismissal without valid cause is an arbitrary dismissal and triggers an indemnity of 1.5 months of salary per complete year of service, capped at 12 months. A resigning employee gives 30 days written notice, which the employer can waive. Probation runs 3 months by default.

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Peru looks straightforward until you cost it out. A salary here is really fourteen-ish months of pay once the July and December gratifications and the twice-yearly CTS deposits are counted, and none of that shows in the headline figure. Add dismissal protection that is monetary rather than notice-based, and the gap between the sticker salary and the real cost is where new employers get caught. Know it up front and it is just budgeting.

A note from Tom Price-Daniel

Peru pays its people closer to fourteen months a year once the July and December bonuses and the CTS fund are counted.

The base salary is the part everyone quotes. The rest is the part that surprises the board.

Read the right Peru guide before the first hire, not after the first payroll run.

Tom Price-Daniel

Co-founder, Teamed

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Keep reading

Peru hiring guide, offer to payslipguide
Peru employer cost breakdown 2026guide
EOR vs entity in Peruguide
Peru termination and severanceguide
Peru tax and payrollguide
Employer of Record overviewcore
The Graduation Modelcore
Teamed pricing, Zero FX Fixedcore
Crossover Calculatortool
Talk to an expertCTA

A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Ministerio de Trabajo y Promocion del Empleo (MTPE), SUNAT, and EsSalud for Peru, or speak to a qualified professional, before relying on any specific framework. Note that a proposed extra night-work pay premium cleared a congressional commission in 2026 but is not yet enacted. *No offboarding fee applies after a 3-month minimum employment term.