Hiring in Peru: Complete Guide 2027
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 Productivity and Labor Competitiveness Law (Legislative Decree 728) 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 or, if agreed, in a foreign currency. Employers contribute 9% to EsSalud (health insurance) plus SCTR occupational risk insurance in the high-risk activities listed by law, priced by the insurer. 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 30 calendar days of vacation after one year, plus two statutory bonuses (gratificaciones) of one month's pay each, 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 months, up to 6 for skilled or trusted staff and 12 for managers
Leave & Time Off
- 30 days annual leave
- Sick leave covered by EsSalud after 20 days
- Maternity leave 98 days
Termination Rules
- 30 days notice to resign; dismissal needs a just cause
- 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 Productivity and Labor Competitiveness Law (Legislative Decree 728): any personal, paid and subordinate service is presumed to be an indefinite employment contract 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, reducing reclassification risk.
Figures checked against official sources: Diario Oficial El Peruano (TUO of Legislative Decree 728, DS 001-97-TR on CTS, Leyes 27735, 27626 and 25129); EsSalud (Ley 26790, SCTR rules DS 003-98-SA); Ministerio de Economía y Finanzas (DS 189-2025-EF on Ley 32123, UIT 2026); SUNAT (income tax law); Congreso de la República (Constitution). Checked November 2026.
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 in PEN brings 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
Salary range: S/50k-S/120k
Lima's tech sector is growing with strong software development and data engineering talent
Mining & Natural Resources
Salary range: S/55k-S/130k
Mining, energy, and natural resources are Peru's dominant industries with high demand for technical and operations roles
Legal & Compliance
Salary range: 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
Biz Latin Hub
- LATAM PEO/EOR across 25+ countries
- Now part of Vistra (Dec 2025)
- Deel and Multiplier B2B partner
- Back-office through to entity formation
Atlas
- 160+ countries through owned entities
- From $599/month published, volume discounts
- 9,000+ L&D courses included
- Visa and immigration support in 75+ countries
Serviap Global
- Merged into Rivermate on 28 April 2026
- Pricing historical: was from $399/month
- LATAM EOR founded in Mexico City in 2010
- Existing contracts continue under Rivermate
Frequently asked questions
Hiring in Peru through an EOR, in short.
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How much does an employer pay on top of salary in Peru?
Employer contributions in Peru come to 9% (+ SCTR in high-risk work); the largest mandatory line is CTS + profit share. With the other statutory benefits and a typical EOR fee, budget ~37–40% on top of gross salary.
What does an EOR charge per employee in Peru?
Published EOR fees in Peru run $300–500/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Peru pay in tax and contributions?
Income tax is 8–30% progressive and employee social contributions are 10% AFP + insurance and fee, or 13% ONP (10% AFP pension (or 13% ONP)), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Peru?
15 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Peru?
Biz Latin Hub, Atlas and Serviap Global hold the first three places in our ranking for hiring in Peru. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Peru.
Find a better EOR — without risk
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