Hiring in Peru: Complete Guide 2026
Everything you need to know about hiring and managing employees in Peru
Overview
Peru is an emerging nearshore hiring market with a growing technology sector, competitive salary levels, and a US-compatible time zone (EST-aligned). Lima is the primary tech hub, with increasing depth in software development, data engineering, and BPO services. Employment law is governed by the General Labor Law framework and includes some distinctive features — notably the CTS (Compensación por Tiempo de Servicios) severance fund deposited twice yearly, and a mandatory profit-sharing scheme for companies with more than 20 employees. An EOR handles all of this without requiring a local SAC or SRL entity.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Peru
Peruvian payroll runs monthly, with salaries paid in PEN. Employers contribute 9% to EsSalud (health insurance) plus 0.75–1.55% SCTR (occupational accident insurance) depending on industry risk. The CTS severance fund — equivalent to approximately one month's salary per year — must be deposited into a bank account in the employee's name in May and November each year. Employees are entitled to two weeks of vacation after one year, plus a mandatory Christmas bonus (gratificación) paid in July and December. An EOR manages SUNAT tax registrations, AFP/ONP pension filings, EsSalud contributions, and the biannual CTS deposits.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract required for fixed-term
- Indefinite contracts assumed if not specified
- Probation 3–6 months depending on role
Leave & Time Off
- 30 days annual leave
- Sick leave covered by EsSalud after 20 days
- Maternity leave 98 days
Termination Rules
- 30 days notice for indefinite contracts
- Severance (CTS) deposited twice yearly
- Unjustified dismissal triggers 1.5 months per year compensation
COMPLIANCE
Contractor Compliance in Peru
Peru applies a strong employment presumption under Article 4 of the General Labor Law: any ongoing paid service relationship is presumed to be an employment relationship unless proven otherwise. This makes sustained contractor engagements legally risky — inspectors from SUNAFIL (the labor inspection authority) actively audit companies for misclassification. An EOR employs workers directly under compliant open-ended or fixed-term contracts, ensuring CTS, gratificaciones, profit-sharing, and all social security contributions are met from the first day, eliminating reclassification risk entirely.
Key Challenges
- CTS severance fund deposited twice yearly
- Complex profit-sharing (participación) rules
- EsSalud registration and contribution admin
- Limited depth of senior tech talent
- Payroll must be in PEN with FX exposure
Country Highlights
Advantages
- Competitive salaries vs. US and EU
- US-compatible time zone (EST-aligned)
- Growing tech and engineering talent base
- Political stability improving for business
- Strong mining, finance, and legal sectors
Popular Industries & Roles
Technology
Avg. Salary: S/50k-S/120k
Lima's tech sector is growing with strong software development and data engineering talent
Mining & Natural Resources
Avg. Salary: S/55k-S/130k
Mining, energy, and natural resources are Peru's dominant industries with high demand for technical and operations roles
Legal & Compliance
Avg. Salary: S/45k-S/110k
Legal and compliance professionals are essential for navigating Peru's complex CTS and regulatory framework
Top 3 Providers in Peru
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Deel
- 150+ countries with owned entities
- Contractor and EOR in one platform
- Rich HRIS integrations including Slack
- AI-powered compliance automation
Remote
- 100% owned entity model globally
- Compliance-first with IP protection
- Strong contractor management at $29/month
- Ranked #1 for compliance on G2
Multiplier
- 150+ owned entities globally
- Transparent flat pricing at $400/month
- Strong APAC and emerging market depth
- ESOP and equity administration included
Find a better EOR — without risk
Compare EOR providers to gain insights on cost, coverage, and contract flexibility, ensuring compliance and payroll continuity.
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