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Employer of Record Peru

Hire staff and expand your business in Peru with our fully-managed EOR Service

How we can help

Unrivalled Employer of Record Service in Peru designed to expand your business seamlessly

Agility EOR delivers services for business’s looking for an Employer of Record in Peru. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.

We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Peru takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.

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Employer of Record in Peru

A Brief Guide to Peru

Peru, a vibrant land with rich culture and history that has become one of the most important economies in Latin America. From ancient Incan sites to bustling modern cities, and awe-inspiring natural beauty, Peru’s diversity is echoed not only in its geography, but also in its economy and workforce.




South America

Capital City


Official Language



1,285,216 sq km


Approx. 34 million (as of 2023)


Sol (PEN)

Major Cities

Lima, Arequipa, Trujillo, Chiclayo


Approx. $240 billion

Major Industries

Mining, Textiles, Manufacturing, Services

Business Culture

Business Culture in Peru

In Peru, the business culture values respect and tradition, but has adapted to international standards. Business formal attire is the norm, and punctuality is highly valued. In negotiations, Peruvians tend to be detail-oriented and may take time before reaching a decision. Relationships are the cornerstone of business dealings in Peru, so taking time to build a strong rapport is essential.

Business is typically conducted in Spanish, but English proficiency is becoming more common, especially in larger corporations.

employer of record peru
Payroll and Taxes

Payroll and Taxes in Peru

In Peru, 13th and 14th month payments are mandatory. Each payment is equivalent to a months salary, with the payments being made biannually, in July and December.

Employee Taxation

In Peru, the tax system is based on the tax unit (IUT). In 2023 one tax unit is 4,950 PEN. Income tax rates are progressive, with higher income levels subject to higher tax rates.

The first 7 – 10 tax units earned annually may be tax exempt, depending on individual circumstances.

Taxable Salary (IUT)

Conversion to local currency (PEN)

Tax Rate (%)

Up to 5

Up to 24,750


5 – 20

24,750 – 99,000


20 – 35

99,000 – 173,250


35 – 45

173,250 – 222,750


45 +

222,750 +


Employer Taxation

Employers in Peru are also responsible for various employer costs, which may include:

Fund Type

Contribution (%)

National Health Insurance


Compensation for Length of Service  (CTS)

4.2% – 8.3% depending on company size

Family Allowance (only employees with children under 18)

10% of minimum wage, currently 102.5 PEN per month

Additionally, employers in Peru are also required to pay for insurance policies for certain employees.

  • Employees engaged in high rick occupations must be provided with a life and disability insurance policy.
  • All employees with 4 or more years of service with the same employer must be provided with a life insurance policy.
Pension and Healthcare

Peru Pensions

Peru’s pension system is primarily administered by the Superintendencia de Banca, Seguros y AFP (SBS), which oversees both private and public pension schemes. Employees contribute a percentage of their earnings to a pension fund. The public pension system, Sistema Nacional de Pensiones, is funded by employee contributions and government top-ups, while the private system, Sistema Privado de Pensiones, is managed by private pension fund administrators known as AFPs.

Healthcare in Peru

Peru’s healthcare system is comprised of a public sector, funded by taxes and user fees, and a rapidly growing private sector. The public sector is administered by the Ministry of Health (MINSA), EsSalud (Social Health Insurance), and the health services of the Armed Forces and the National Police. EsSalud, funded by a payroll tax, covers formally employed workers, providing access to hospitals, clinics, and healthcare professionals. MINSA provides coverage for the uninsured population, focusing on those who are self-employed, unemployed, or low-income.

In the private sector, there are health clinics and hospitals, often concentrated in larger cities, which provide care for a fee or via private health insurance. While private care is generally perceived to be of higher quality, it’s also more expensive.

Access to healthcare can vary significantly, with urban areas tending to have more resources and higher quality care compared to rural
regions. Efforts have been made to improve healthcare access and quality, but disparities remain, something to bear in mind when looking to operate in diverse areas of the country.

employer of record peru
Employment Law

Employment Law in Peru

Relevant Legislation: Peruvian Labor Law is governed primarily by the Political Constitution of Peru (1993), Legislative Decree No. 728 – Law on Labor Productivity and Competitiveness, and the Law of Labor Procedure (Law No. 29497).

Employment Contracts: Employment contracts in Peru may be indefinite, fixed-term, or for specific work. They are written in Spanish and detail the conditions of employment. Indefinite contracts are most common, but fixed-term contracts are allowed under certain circumstances as detailed in the Law on Labor Productivity and Competitiveness.

Working Hours: The standard working week in Peru is six days, with a maximum of 48 hours. However, for office workers, a five-day working week is common. The daily limit is 8 hours.

Leave: Employers in Peru are required to provide a minimum of 30 calendar days of paid annual leave. Employees are also entitled to sick leave, maternity leave (98 days), and paternity leave (10 days).

Overtime: Overtime, any work exceeding the 8-hour daily limit or 48-hour weekly limit, must be compensated with an additional 25% of the regular pay rate for the first two hours, and 35% for any subsequent hours.

Termination: Employees in Peru can be terminated for justifiable cause, including serious misconduct, as detailed in the Law on Labor Productivity and Competitiveness. Due process must be followed, which includes providing evidence of the cause and allowing the employee to present a defence.

Notice: In cases of dismissal for a justifiable cause, no notice period is required. However, for redundancy (collective dismissal), the employer is required to give 30 days’ notice.

Severance Pay: Upon termination, employees are entitled to severance pay known as “CTS” (Compensation for Length of Service), which depends on the length of service and the reason for termination. The CTS is deposited semi-annually in a special bank account and includes the employee’s monthly salary plus one-sixth of annual bonuses.


Work Permits in Peru

The immigration system in Peru is managed by the National Superintendency of Migration, an institution that falls under the Ministry of Interior. They oversee immigration law enforcement, visa applications, residence permits, and other immigration-related processes.

Foreign nationals wishing to work in Peru usually need to obtain a work visa before arrival. The most common types are:

  • Foreign Worker Visa: For individuals employed by a Peruvian company. This visa is contingent on a labor contract that needs to be approved by the Ministry of Labor. It’s worth noting that Peruvian legislation limits foreign workers to a maximum of 20% of the total number of employees in a company, and their combined salaries can’t exceed 30% of the total payroll.
  • Appointed Worker Visa: For senior-level employees. It’s applicable for those occupying a management position or executing administrative or supervisory functions. In this case, the foreign worker is appointed by a parent company to work in a branch or subsidiary located in Peru.
  • Investor Visa. For individuals who wish to start a business or invest in an existing Peruvian business. The minimum investment required for this visa is typically 500,000 Peruvian Soles (approximately USD 140,000 as of 2023).
  • Temporary Student Visa: For foreign students who wish to pursue their studies in a Peruvian educational institution. It’s valid for one year and can be extended annually.

Once the appropriate visa is obtained, foreign nationals can then apply for a Foreign Resident ID Card (Carné de Extranjería), a mandatory document for foreign residents in Peru. It allows the holder to sign contracts, open bank accounts, and gives them access to other services.

employer of record peru
Public Holidays

Peru Public Holidays



New Year’s Day

January 1

Maundy Thursday

Variable (March/April)

Good Friday

Variable (March/April)

Labor Day

May 1

St Peter and St Paul

June 29

Independence Day

July 28-29

Santa Rosa de Lima

August 30

Battle of Angamos

October 8

All Saints’ Day

November 1

Immaculate Conception

December 8

Christmas Day

December 25

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The Benefits

Peru Employer of Record Benefits

When you choose Agility EOR to expand in Peru, we guarantee an Employer of Record Service tailored to the needs of your business


We are on top of regulatory changes in Peru so you can relax.

Cost reduction

Allow our economies of scale to work in your favour.

High Service Levels

You and your employees have a dedicated account manager.

Fixed Cost Pricing

We will agree our professional fees up front based on your needs - no nasty surprises!

Consolidated Invoicing & Payments

Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.

Fast delivery

You can have 'boots on the ground' within days on our infrastructure.

Reduced Risk

All wage taxes are remitted in full to the Peruvian authorities by professionals ensuring liabilities are met, giving you peace of mind.

Supply Chain Transparency

We only pay employees through local full employed solutions meaning Peru payroll tax is paid on all funds.

Save Time and Money

Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.

Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.

Carol Oliveira