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Peru Payroll Outsourcing

New Horizons can set up and run your Peru payroll, even if you don't have a Peruvian subsidiary

Setting up and managing a payroll in Peru

Peru’s economy has grown significantly in recent years, and the country is attracting an increasing amount of foreign investment.

If your organization is planning a Peru expansion, one of the first things your organization will need to do is start hiring a workforce in Peru. This generally means you’ll have to establish a legal entity in the country, set up a payroll, and follow various administrative procedures. Collectively, these processes can take weeks, potentially delaying your expansion efforts and costing you in lost revenues.

A popular way to bypass the complexity of Peruvian employment is to outsource your payroll setup and management. At New Horizons, we will work with you to build and run a compliant, fully functional Peruvian payroll to help you kickstart your expansion, whether or not you already have a registered entity in the country.

If you have an entity in Peru

If your company already has a legal entity registered in Peru then we can help you with the next steps. Our team will set up and manage your payroll, as well as any associated HR and compliance work to help you focus on the important job of expanding your business in Peru.

If you don’t have an entity in Peru

If you have not registered a legal entity in Peru, then our comprehensive outsourcing services can cover your payroll setup and management, making use of our established Peruvian subsidiary to act as employer of record.

This option is ideal for any organization aiming for a rapid, low-risk, and scalable route into Peruvian hiring and expansion.

Simpler, more reliable expansion in Peru with help from New Horizons

Reliable Delivery

We guarantee that all payments will be on time, your data will be secure, and you can be up and running within just 48 hours.

An Established Presence

Our in-country subsidiary will act as employer of record, offering you a presence in Peru for legal local employment.

Flexible Solutions

Our team will manage all of the admin, payroll, HR, and taxes, so you can focus on building your business in Peru.

Up-To-Date Compliance

With the ever-changing Peruvian employment laws, we’ll ensure you stay fully compliant at all times.

A Single Point of Contact

Our centralized service gives you a single point of contact, simplifying the entire in-country employment process.

Proven Global Expertise

Our in-house teams of payroll and HR experts have already helped dozens of organizations expand globally.

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Peru payroll guide

What are the tax and withholding rules in Peru?

Employers and employees in Peru must both make mandatory contributions to various social funds. Employers must contribute 9% of salaries to the health service (RPS), but can receive some of this back if they choose to provide private insurance as well. They must also contribute 11.5% to funds that cover things like pensions, disability insurance, and more. Some employers also need to pay for workplace accident insurance.

Employees must contribute 13% of salary to the national pension system, or choose to use a private pension. 

Health Insurance
9%
Total Employment Cost
9%
Pension Fund
13%
Total Employee Cost
13%
1 Tax Unit (UIT) = 4,300 Peruvian soles (PEN)
Up to 5 UIT
8%
From 5 UIT to 20 UIT
14%
From 20 UIT to 35 UIT
17%
From 35 UIT to 45 UIT
20%
More than 45 UIT
30%

Contractual rights and termination regulations

Employees in Peru are entitled to between six and 30 days of notice prior to termination. The exact length depends on the circumstances of termination. For termination without proper cause, employees are generally entitled to a severance payment of roughly one and a half months of pay for every year of service, up to one year of pay.

Probation periods can be up to one year in length.

How to establish a payroll in Peru

Setting up a payroll in Peru is a complex process, and you will need to deal with language, cultural, and procedural differences if you want to set it up yourself. You will need to first register an entity in Peru, then register with the appropriate tax authorities, and so on.

These initial processes can take weeks or months to finish, which could significantly stall your expansion progress.

Alternatively, New Horizons’ outsourcing can streamline your entire hiring and payroll process, facilitating your Peruvian expansion and ensuring you are fully prepared to grow your business successfully. Our employer or record service means that you can even benefit from our solutions if you have not registered a legal entity in Peru, utilizing our Peruvian subsidiary to act as employer of record for your employees.

Request a proposal

Talk to our Peru payroll experts