Minimum Wage

General

The national minimum wage in Peru is 1,025 PEN per month.

Payroll

Payroll Cycle

Employees are paid monthly.

13th Salary

13th-month and 14th-month payments are mandatory in Peru. The employer must pay an additional month’s salary twice a year, once at the end of July around Peru’s Independence Day and the other at the end of the year during Christmas.

Working Hours

General

Full-time employment is 8 hours per day and 48 hours per week.

Overtime

All work more than the standard working hours a week is to be paid as overtime and is regulated by employment contract/collective agreements. When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed.  

All overtime hours in excess of 48 hours a week are paid at an overtime compensation rate; this rate is stipulated in the employment contract/collective agreements. The first two hours of overtime cannot be compensated with less than 25.00% of the total remuneration of the employee, for every additional hour of overtime, the surcharge cannot be less than 35.00% per hour.  

Working Week

Monday–Saturday

Leave

Paid Time Off

Aside from public holidays, employees are entitled to paid annual leave of 30 days, 15 of which may be divided into two periods, and the remainder is to be taken in at least one-day increments. Domestic workers are entitled to 15 days of paid annual leave.  

An employee cannot take annual leave alongside any other leave entitlement such as maternity leave, and sick leave.

Public Holidays

There are 12 public holidays.

Sick Days

In Peru, employees are entitled to 365 days of paid sick leave. The employer compensates the first 20 days of sickness and the remaining 245 days are to be paid by social security.

Maternity Leave

Female employees are entitled to 98 days of paid maternity leave; 49 days before the birth of the child and 49 days following the delivery. In the event of multiple or complicated births, the leave can be extended by 30 days.  

The National Health System (EsSalud) or the Private Health System (Entidades Promotoras de Salud or EPS) compensates maternity leave. To qualify for maternity benefits, the employee must have completed three months of service during the six months before leave.

Mothers also receive 30 days of paid adoption leave following the adoption of a child until the age of 12 years old.  

Paternity Leave

The father/partner is entitled to 10 days of paid paternity leave after the child’s birth; the entitlement increases to 20 days of leave in the case of a complicated or premature birth.

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave

There are no provisions in the law regarding additional statutory leave.

Termination

Termination Process

The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason for termination. Employees should receive at least six days of written notice so that they can respond or prove their capability within the company. The employer must provide the written termination to both the employee and the trade union. Employees dismissed without cause are typically entitled to severance pay of up to 12 months.

Notice Period

An employee should receive at least six days of written notice period to termination so that they can respond or prove their capability within the company. If an employee is resigning, they must provide an employer with at least 30 days’ notice.  

Severance Pay

Severance pay is not usually granted in the case of separation due to their conduct of capacity; however, if an employee is dismissed without cause, severance pay of up to twelve months is often given.  

There is no specific redundancy pay required under Peruvian law.

Probation Period

In Peru, probation periods are outlined in the employment contract. Typically, the probational period lasts for three months.

The probationary period may be extended for skilled workers or employees in positions of trust to six months, and one year for managerial roles.

VISA

VISA

A foreigner wishing to work in Peru must complete the new TUPA (Texto Unico de Procedimientos Administrativos; Single Text of Administrative Procedures) process.

Applying for a Peruvian resident work visa requires the following;

• Interpol clearance – Ficha de canje internacional 
• Receipt for the paid application fee 
• Receipt for the paid application fee for changing to a resident visa 
• Passport
• Legally signed and by Labour Ministry approved work contract with a duration of at least 12 months.
• Police clearance certificate, criminal record, and judicial matters check issued in the country of origin and, if the applicant lived in another country before coming to Peru, in the land of residence covering the last five years *
• SUNAT registration including RUC (Peruvian tax number) showing the employing company is active
• Company registration of the employing company showing the legal representative
• Sworn statement of the legal representative of the company declaring that he oversees hiring personal and why he needs to employ a foreigner

*For the past years, a sworn statement stating that the foreigner has a clean criminal record and no previous convictions was enough to satisfy Migraciones. However, the new Tupa and Supreme Decree now state that a police clearance certificate, criminal record, and judicial matters check issued in the country of origin and, if the applicant lived in another country before coming to Peru, in the country of residence covering the last five years is required. “Antecedentes Policiales, Penales y Judiciales”. 

Once this is complete, the foreigner will receive confirmation that your work visa is approved, payment has been made, and the person is now registered in the foreigner database and issued the carné.

VAT

General

The standard rate of VAT in Peru is 18.00%.