Horizons Logo


Peru PEO & Employer of Record

Expand your organization into Peru, with or without a Peruvian entity

Peru has developed rapidly in the last two decades, achieving impressive economic growth rates and huge reductions in poverty. Now, the South American country is attracting increasing amounts of foreign investment.

If your organization is planning an expansion into Peru, it is important to realize that progress can be slow when setting up your operation. Language, cultural, and business differences can all result in significant delays.

At Horizons, we offer advice and support organizations planning to expand into Peru. Our bespoke professional employer organization (PEO), employer of record, and payroll services can offer everything needed to expand your business into Peru, whether or not you have already established a Peruvian entity. 

 Horizons provides everything you need to expand into Peru quickly and effectively while potentially saving you thousands in setup costs.

Our Peru PEO simplifies your expansion

 Horizons helps your business expand into Peru, even without a legal subsidiary.

Rapid Market Entry

Horizons will enable you to source, hire, and onboard professionals across Peru in as little as 48 hours.

Cost-Effective Expansion

Our PEO solution can help you benefit from cost savings of up to 85%, without the need to establish a Peru entity.

Payroll Services

Simplified Peru salary & payroll processing, including any tax, withholdings, and any other required contributions.

Employee Onboarding

Utilize the relevant provision for all types of Peru labor contracts, whether a fixed-term or open-ended contract.

Onsite Legal & HR Team

Full support for Peru-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.

Ensure Full Compliance

We ensure that employment contracts are fully compliant and adhere to Peruvian labor laws and best practices.

Hiring in Peru: Employment law overview

📝 Employment contracts in Peru

Employment contracts in Peru can technically be either oral or written, but we strongly recommend using written contracts for all employees. These contracts should include any relevant details of employment, such as benefits, salary, working hours, and so on. They should also be written in Spanish and use the Peruvian sol as currency.

⏰ Working hours in Peru

A normal working week in Peru is a maximum of 48 hours long. Overtime is generally 1.25x normal salary.

📅 Public holidays in Peru

Peru celebrates several major public holidays. Most employees receive the following days off work:
01 Jan
New Year’s Day
09 Apr
Maundy Thursday
10 Apr
Good Friday
01 May
Labour Day
24 Jun
Inti Raymi
29 Jun
Saint Peter and Saint Paul
28 Jul
Independence Day
30 Aug
Santa Rosa de Lima
08 Oct
Battle of Angamos
01 Nov
All Saints’ Day
08 Dec
Immaculate Conception Day
25 Dec
Christmas Day
31 Dec
New Year’s Eve

🏖 Peru vacation leave

Employees in Peru are usually entitled to 30 days of paid vacation leave annually.

😷 Peru sick leave

Employees in Peru are entitled to five days of paid sick leave annually, but some employers choose to offer more.

👶 Maternity and paternity leave in Peru

Female employees in Peru are entitled to 14 weeks of paid maternity leave, with half to be taken before they give birth and half after.

Male employees are entitled to ten days of paid leave.

💰 Terminations and severance payments in Peru

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.

🏦 Taxation 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 coverage in Peru

Peru does have a public healthcare system, but many people in the country also use private services. For this reason, many employers choose to offer private medical insurance as a benefit to workers.

💳 Peru compensations & benefits

Compensation Laws in Peru

The minimum wage in Peru is 930 soles per month for full-time workers.

Benefit management in Peru

It is common for employers in Peru to offer benefits packages to their workers. However, establishing a benefits system in Peru can be complicated, especially if you are unfamiliar with the country’s unique set of labor laws and administrative procedures.

At Horizons, we specialize in building and running Peruvian employee benefits systems. We’ll handle everything, using our experience to ensure you are ready to commence your Peru operation as quickly as possible.

Request a Proposal