Employment Law

Employment Contracts in Peru

Technically, employment contracts in Peru can be oral or written, but we strongly recommend that all employees use written contracts. These contracts should include any relevant employment details such as benefits, wages, working hours, etc. They should also be written in Spanish and use the Peruvian sol as currency.

Fixed Term

Probation	3 months (standard)
Termination notice period	6 days: employer gives notice to employee 30 days: employee gives notice to employer
Severance pay	No, except in case of unfair termination (up to 12 months salary)

Indefinite

Probation	3 months (standard)
Termination notice period	6 days: employer gives notice to employee 30 days: employee gives notice to employer
Severance pay	No, except in case of unfair termination (up to 12 months salary)

Peru Working Hours

The normal working week in Peru is a maximum of 48 hours. Overtime pay is generally 1.25 times the regular salary.

Holiday Policy

Peru Vacation

Employees in Peru are generally entitled to 30 days of paid vacation per year.

Peruvian Sick Leave

Employees in Peru are entitled to five days of paid sick leave per year, 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, half of which is taken before and half after the birth.

Male employees are entitled to ten days of paid leave.

Peruvian Taxes

Both employers and employees in Peru are required to make mandatory contributions to various social funds. Employers are required to contribute 9% of wages to the RPS, but can get part of this back if they also choose to provide private insurance. They must also contribute 11.5% to the fund, which is used to pay for pensions, disability insurance and other expenses. Some employers also require workers' compensation insurance.

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

Health Insurance in Peru

Peru does have a public healthcare system, but many people in the country also use private services. Therefore, many employers choose to offer private health insurance to their workers as a benefit.

Termination and Severance Pay in Peru

Employees in Peru are entitled to receive between 6 and 30 days' notice before terminating their contract. The exact length depends on the circumstances of termination. In cases of dismissal without just cause, employees are generally entitled to severance pay of approximately one and a half months' salary for each year of service, up to a maximum of one year's salary.

The probation period can be up to one year.

Salary and Benefits

Peruvian Compensation Law

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

Minimum wage country comparison chart	(in USD per month)
Switzerland (Geneva)	$4,000
Italy	$2,255
Australia	$1996
Algeria	$156
Uzbekistan	$22

Benefits Administration in Peru

It is common for employers in Peru to offer benefit plans to their workers. However, setting up a benefits system in Peru can be complex, especially if you are unfamiliar with the country's unique labor laws and administrative procedures.

At Remoly, we specialize in building and operating Peruvian employee benefits systems. We'll use our experience to handle everything to ensure you're ready to start your business in Peru as quickly as possible.

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