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According to Peru's labor laws, to be eligible for annual leave, employees must complete 1 year of service with the employer. Employees who work for 6 days a week must have worked for at least 260 days in a year, and employees who work for five days in a week must have worked for at least 210 days in a year.

Employees are entitled to at least 30 calendar days of paid annual leave. Employers should note that the 30 calendar days include weekly rest days, public holidays, and other non-working days. The annual leave can be reduced from 30 to 15 days by providing compensation for the 15 days.

The employee is to be paid their regular compensation for the leave period. Annual leave compensation is to be paid before the start of the employee's annual leave.

According to Peru's labor code, employees are entitled to 20 days of sick leave fully paid by their employer. If an illness continues beyond this period, qualified employees can receive payments from the National Social Security Fund (ESSALUD) starting on the 21st day. After a 1-day waiting period, they are eligible to receive 100% of their average daily earnings from the past four months. This benefit can last up to 11 months and 10 days consecutively or up to 540 nonconsecutive days within a 3-year period.

To qualify for the social insurance sick leave benefit, most insured persons must have 3 consecutive months of contributions or 4 nonconsecutive months within the 6 months before the month in which the disability began. Fishing employees must have 2 consecutive or nonconsecutive contributions paid in the 6 calendar months before the month in which the disability began. Insured independent artisanal fishermen and fish processors must have 3 consecutive monthly contributions paid. Accidents automatically qualify for social insurance as long as the employee is affiliated when the accident occurs.

In Peru, pregnant employees are entitled to 49 days of paid leave before delivery and 49 days after delivery. For multiple births or births with a disability, the maternity leave is extended by 30 calendar days. If the delivery occurs before the expected date, the remaining days are added to the postnatal rest. Qualified insured employees receive 100% of their average daily earnings over the last 12 months, up to a maximum earnings level, for all 98 days. If contributions were made for less than 12 months, the average will be determined based on when contributions began. The benefit is extended for multiple births or the birth of a child with a disability.

To qualify for maternity benefits from the state social insurance fund, mothers must have at least 3 consecutive months of contributions or at least 4 months of contributions in the 6 months before the month in which their benefits begin. Agricultural workers must have at least 3 consecutive months of contributions or at least 4 months of contributions in the 12 months before becoming pregnant. Also, they must have contributed during the month in which the child is born.

According to Peru's law, employees have the right to 10 calendar days of paternity leave in instances of natural birth or cesarean section. For premature and multiple births, the leave is increased to 20 calendar days. For births resulting in terminal congenital disease, severe disability, or serious complications to the mother's health, paternity leave is 30 calendar days. Paternity leave starts from the day of birth or 3 days before the date of birth. Employees must inform their employers of this leave at least 15 days before the expected date of delivery.

Paternity leave cannot be substituted with compensation.

Pension

In Peru, there are two social security systems: the National Pension System (SNP) and the Private Pension System (SPP). Employees can choose which system to join and switch between them at any time. Both systems offer insurance for disability, survival, and burial expenses.

The SNP is a public system where contributions are pooled. Pensions are based on years of contribution and average earnings, with individuals contributing 13% of their gross monthly earnings. Employees can retire at age 65 or early at 50 with at least 25 years of contributions, though the pension is reduced by 4% per year for early retirement.

The SPP, managed by private administrators, involves individual accounts that grow through monthly contributions and profitability, with optional voluntary contributions. 10% of gross monthly earnings plus insurance and fees are contributed each month. The retirement age is 65 years without the requirement of minimum contribution periods. Early retirement is also available in the SPP, provided the individual is at least 50 years old and certain other conditions are met.

Dependents/Survivors Benefits

The National Pension System (SNP) covers survivors pensions for widow(er)s, children, and parents of the deceased insured member. The maximum pension amount for a spouse is 50% of the disability or retirement pension to which the deceased was entitled. The pension ends if the survivor remarries. The deceased's children are entitled to a pension of 50%. Parents of the deceased insured person are entitled to a pension of 20%, provided that they are disabled and of retirement age or were economically dependent on the deceased.

Under the SPP system, survivors who are nominated by the deceased employees are eligible to receive a pension upon their death. Beneficiaries include widow(er)s, children, and parents of the deceased insured member. The pension amount is based on the deceased's average monthly earnings in the last 48 months before death. The maximum pension amount is 42% of the decedent's pension.

Employees enrolled in the SNP must contribute 13% of their gross monthly earnings, while those enrolled in the SPP must contribute 1.35% of their earnings to the invalidity and survivors pension system. Employers are not required to make contributions to the SNP or SPP invalidity and survivors pension system.

Invalidity Benefits

The National Pension System (SNP) covers disability pensions for those insured members who are permanently disabled, mentally or physically, and whose earning capability has been reduced by more than 66.67%. The amount of the disability pension is equal to 50% of the standard remuneration of the employee. An additional bonus is paid if constant care is required.

Under the SPP system, insured employees who have lost at least 50% of their ability to work and who are not receiving an old-age pension are eligible for disability benefits. The pension for partial disability (50% to 66.67%) is 50% of the insured's average remuneration and the pension for full disability (greater than 66.67%) is 70% of the insured's average remuneration.

Employers are not required to make contributions to the SNP or SPP disability and survivors insurance. Under SPP however, employers are required to contribute 5% of gross payroll for fishermen, 1% for construction workers, and 2% for miners.

The legal minimum working age in Peru is 14 years. The minimum age is 15 years for employment in non-industrial agricultural work, 16 years for work in industrial, commercial, and surface mining, and 17 years for work in the industrial fishing sector. Young persons below the age of 16 years are allowed to work only with their parents' authorization.

Persons below the age of 14 years can be employed in light work, such as for a family business, on a family farm after school, or in a legitimate apprenticeship opportunity that is not hazardous and does not affect school attendance.

For persons between the ages of 12 and 14, working hours cannot be more than 4 hours per day or 24 hours a week. For persons between 15 and 17 years of age, working hours cannot exceed 6 hours per day. Night work is prohibited for minors below the age of 15 years. A judge must authorize persons between the ages of 15 and 18 to work at night as an exception. In these cases, night work cannot exceed 4 hours a day.