Hire and pay employees in
Peru, hassle-free

The individual income tax ranges from 8% to 30%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

In Peru, the income tax rate is calculated based on units. Each taxing unit represents an annual income tax of PEN 4,400.

The employer cost is generally estimated at 9% of the employee salary.

Monthly Costs
Public Health Insurance - 9%
Teleworking Allowance: PEN 115
Please note: If the employee is entitled to receive the family bonus (PEN 113), the monthly costs will be calculated on the sum of the employee's salary and the family bonus.

Annual and Bi-Annual Costs
Compensation for time of service - 8.56% (twice a year)
13th Month Salary - 1 month basic salary 
14th Month Salary  - 1 month basic salary
Profit sharing - approximately PEN 190 for 2023, but it changes every fiscal year

•  125% of the hourly rate, the first two hours
•  135% of the hourly rate, the following hours

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Peru can be complex. There is no at-will termination in Peru for employers [outside the probation period] and termination must be done for just cause. Compliant terminations include:

•  Voluntarily by the employee
•  By mutual agreement
•  Unilaterally by the employer based on:
  • Probation period
  • Objective grounds
  • Disciplinary dismissal
•  By expiration of the contract

In Peru employees who are terminated due to arbitrary -unjustified- dismissal are entitled to severance pay. Severance pay is 45 days of salary per year of service up to 12 months base compensation.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

1. Good Friday
2. Labor Day
3. Saint Peter and Saint Paul Day
4. National Holidays
5. Santa Rosa de Lima
6. Battle of Angamos
7. All Saints' Day
8. Day of the Immaculate Conception
9. Battle of Ayacucho- Non-working day public sector
10. Christmas Day

• Name
• Start date
• Length of the employment
• Job description
• Termination conditions