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Employer of Record (EOR) in PePeru






Country Capital



Peruvian sol (PEN)

G-P’s employer of record (EOR) model allows your company to start hiring talent in minutes via our global entity infrastructure. Unlike a Professional Employer Organization (PEO), G-P allows your company to expand your global footprint without the hassle of entity setup and management.

Our global employment products, including G-P Meridian Prime™ and G-P Meridian Core™, are backed by the largest team of HR and legal experts in the industry. We handle the growing complexities of compliant global expansion — so you can focus on opportunities ahead.

As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.

Hiring in Peru

When negotiating terms of an employment contract with employees in Peru, make sure to keep the following in mind.

Employment contracts in Peru

As a general rule, employment contracts are for an indefinite term. Fixed-term contracts are only permitted under certain circumstances, for a maximum period of 5 years, and must be in writing and registered with the Labor Ministry.

Legally, employment contracts in Peru can be written or verbal, but it is best practice to put a written employment contract in place in Peru, in the local language, which spells out the terms and conditions of the employment relationship, including the employee’s compensation, benefits, and termination requirements. An employment contract in Peru should always state the salary and any compensation amounts in Peruvian soles rather than another currency.

Working hours in Peru

The standard workweek is 8 hours per day with a maximum of 48 hours per week.

Holidays in Peru

Peru celebrates 15 national holidays (16 days off, with a 2-day Independence Day):

  1. New Year’s Day
  2. Maundy Thursday
  3. Good Friday
  4. Easter Day
  5. International Workers’ Day
  6. Feasts of Saint Peter and Saint Paul
  7. Airforce Day
  8. Peruvian Independence Day (2-day holiday)
  9. Battle of Junin
  10. Saint Rose of Lima Day
  11. Battle of Angamos
  12. All Saints’ Day
  13. Immaculate Conception
  14. Battle of Ayacucho
  15. Christmas Day

Vacation days in Peru

In general, employees are entitled to 30 calendar days of paid leave each year.

Peru sick leave

Employees are entitled to 20 paid days off for sickness or temporary disability. For the first 20 days of illness, the employer must pay 100% of the salary, and the employee must provide a general medical certificate.

Starting on the 21st day of medical leave, the employer will pay the employee’s salary for up to 11 months and 10 days of consecutive sick leave and request reimbursement from the social security health institution (EsSalud).

Parental leave in Peru

Pregnant employees are generally entitled to 14 weeks of paid maternity leave, 7 to be taken before the birth and 7 after. Spouses of pregnant employees are entitled to 10 consecutive days of paid leave.

Health insurance in Peru

Peru has a decentralized healthcare system that provides public and private coverage.

Many people in Peru take advantage of the country’s public healthcare, which is offered through 2 main departments — the Ministry of Health of Peru (MINSA) and EsSalud.

MINSA offers free basic healthcare, called “Seguro Integral de Salud.” EsSalud supplies a low-cost healthcare option and is supported by payroll taxes, which employers pay. EsSalud is mandatory for all employees as the state-sponsored public health service.

In addition to public health insurance, some employers offer supplemental healthcare options to remain competitive.

Peru supplementary benefits

Employers are required by law to provide employees with life insurance or Vida Ley. An additional risk insurance — Seguro Complementario de Trabajo de Riesgo (SCTR) — might be applicable for employees required to work at physical facilities where there is increased potential for work-associated risks.


Employees must receive 2 statutory bonuses (Gratificación) every year — a bonus in July and a bonus in December, each of which should be equivalent to a month’s salary.

Additionally, employees receive Compensation for Length of Services (CTS), a benefit that is usually equivalent to 1.16 of an employee’s monthly salary, 50% to be paid in May and 50% in November of the same year.

Finally, employers with more than 20 employees must share profits among their employees.

Termination and severance in Peru

The standard probationary period is 3 months. However, this can be extended up to 6 months or 1 year for management/trust positions. During the probationary period, an employer may terminate an employee without reason, so long as it is not prohibited by the constitution.

Following a probationary period, employees may be terminated with just cause, with documentation, or by mutual agreement. In general, an employer must send the employee a pre-notice letter of dismissal, and the employee has 6 calendar days to respond, or , in the case of capability, 30 calendar days to prove their capability. The employer must also provide in writing to the employee, and trade union if applicable, the dismissal decision and the reason for the dismissal.

Dismissed employees are entitled to severance pay in the amount of ½ the regular monthly salaries for each full year of employment capped at a maximum of 12 salaries. In case of a non-completed year, this is prorated accordingly.

Paying taxes in Peru

Employers contribute:

  • 9% of payroll to the National Health System (RPS) — although, if they provide supplemental health plans to their employees, they can get a credit for some of that expense.
  • An average of 11.5% of gross salary to ASPs, which are private entities that manage pension funds that provide employees’ retirement and disability pensions and funeral expenses.

Employees contribute 13% of their salaries to the National Pensions System, but they may switch to a Private Pension System.

Why G-P?

At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading Global Growth Platform™. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.

Contact us today to learn more.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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