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This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

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The Republic of Peru is a South American country bordering the Pacific Ocean on the west and the Amazon forest on the eastern side with Brazil. Peru is the second largest Amazonian national territory, after Brazil. Lima, the capital of Peru and the largest city, overlooks the Pacific Ocean. Spanish is the predominant language. Peru's exports are textiles, copper, gold, zinc, chemicals, manufactured goods, services and fish meal. Its major trade partners are the United States, China and Brazil. Peru has been one of the fastest growing economies in the region.

An employment contract in Peru can be either for an indefinite or fixed term. A fixed-term contract must be in writing and specify the objective reason the parties are contracting for a fixed term, the duration of the contract and other conditions agreed by the parties. The duration of a fixed-term contract cannot exceed five years. Fixed-term contracts must be registered with the Labor Ministry.

Special rules apply to employment contracts with foreign employees.

The standard work period in Peru is 48 hours a week and eight hours a day.

Employees receive a year of paid sick leave in Peru. The first 20 days are paid by the employer, while sick leave after that and up to 11 months and 10 days are paid by social security. The employee, after one year, can apply for a disability pension if they are still not fit to work.

Female employees receive 98 days of paid maternity leave in Peru, with 49 days before and 49 days after the birth. The employee can choose to take the rest partially or consecutively after the delivery and must notify the employer about the leave two months in advance. In the event of multiple births or a pregnancy-related complication, maternity leave can be extended by 30 days. To qualify for maternity benefits, the employee must have worked for three consecutive or four non-consecutive months during the six months prior to the leave. A male employee is entitled to 10 days of paternity leave.

Peru has a national minimum wage. Employees in Peru receive two bonuses. The first is paid at the end of July around Peru’s Independence Day and the other is paid during Christmas. Each bonus payment is equal to the employee's monthly salary. Employees also receive a percentage of the statutory bonus paid at the same time. Employers with more than 20 employees must pay a percentage of their annual pre-tax profits to the employees. Employees with children receive an additional monthly payment, which is a percentage of the minimum monthly wage

Employees receive 30 days of paid annual leave in Peru. The first 15 days may be divided into two periods of at least seven and eight days. The remainder must be taken in at least one-day increments. The vacation leave period cannot overlap with maternity leave or disability leave. If the employee does not get the vacation period during the year, the employer must pay one month’s salary for the vacation, plus another month’s salary as an indemnity.

In Peru, the public holidays are:

  • New Year's Day

  • Maundy Thursday

  • Good Friday

  • Labor Day / May Day

  • Feast of St. Peter and St. Paul

  • Independence Day

  • Independence Day (day 2)

  • Santa Rosa De Lima

  • Battle of Angamos

  • All Saints' Day

  • Feast of the Immaculate Conception

  • Battle of Ayacucho

  • Christmas Day

Employed individuals are eligible to receive healthcare benefits through Peru’s social security system. The program, called El Seguro Social en Salud (EsSalud), is funded through payroll tax contributions. Private insurance is also available.

In Peru, termination of employment can occur by mutual consent, by the employer (with or without cause) or by the employee. An employer must either have a valid reason (just cause) to terminate an employee or provide notice and pay severance.

  • Local Laws & Regulations

    We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

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