Hire employees in Peru
Everything a foreign company needs to know before employing people in Peru: whether you need an entity, what an employee really costs once EsSalud, two gratificaciones and the CTS fund are added, how payroll and SUNAT withholding work, which leave and bonuses are mandatory, and why termination is never at will. Written for CHROs, CFOs, General Counsel and founders.
Quick answers
The questions leadership teams ask first, answered directly. Detail follows further down the page.
Do I need a Peruvian entity to hire?
No. Foreign companies can engage talent in Peru through three routes:
- Employer of Record. Dryft Global employs the person through a compliant Peruvian employer registered with the tax administration (SUNAT), the public health insurer (EsSalud) and the electronic payroll system (PLAME). Dryft runs payroll, EsSalud, pension and tax withholding, the July and December gratificaciones and CTS deposits. You direct the day to day work.
- Direct local entity. You establish a Peruvian branch or subsidiary, register with SUNAT and EsSalud, open local banking and run payroll yourself. The right choice once headcount, duration or in-country activity justifies the cost and time of incorporation.
- Independent contractor. Peru has an active freelance market in technology and creative fields, but the label on the agreement does not decide legal status. SUNAT and the Ministry of Labor look at substance. See the contractor section below.
When should I use an EOR instead of setting up a local company?
An EOR makes commercial sense when you are:
- Hiring a first employee or a small team in days rather than the weeks an entity takes.
- Building a Spanish-speaking nearshore team close to Pacific and US business hours.
- Adding a lower-cost, well-educated labour pool to a footprint that already covers Colombia, Chile or Mexico.
- Avoiding the administration of gratificaciones, CTS deposits and PLAME filings.
A local entity becomes the right answer when headcount, duration or in-country activity justifies it: local commercial contracts, licences or a physical operation. The guide gives no headcount threshold.
What does an employee actually cost beyond salary?
Plan for roughly 30% to 40% or more on top of base salary. EsSalud runs at 9% of remuneration, the two gratificaciones accrue at about 16.7% a month plus a 9% extraordinary bonus on each, CTS accrues at about 8.3% to 9.7%, and Seguro Vida Ley life insurance adds around 0.5%. Pension contributions of about 12.5% to 13% are employee-funded, so they shape net pay but not your cost. Family allowance and profit sharing come on top where they apply. Full breakdown below.
How difficult is termination in Peru?
Not at will, and improperly executed terminations are the most common and costly compliance failure for foreign employers. Peru distinguishes dismissal for just cause (documented misconduct or poor performance, communicated through the applicable procedure) from dismissal without cause, which triggers statutory severance tied to length of service, subject to caps. Pregnant employees and certain union representatives need a special procedure. Confirm the scenario with local counsel before you communicate a decision.
Can Dryft Global legally employ my team in Peru?
Yes. Dryft Global acts as the legal employer in Peru. We handle the written employment agreement, SUNAT and EsSalud registration, the pension election (ONP or AFP), monthly PLAME declarations, gratificación and CTS accruals from day one, vacation tracking and compliant offboarding, while you direct the work. Scope, lead times and pricing are confirmed with your Dryft representative.
Hiring routes compared
Speed, statutory exposure and administrative load differ by route.
| Factor | Direct entity (Peruvian company) | Dryft Global EOR | Independent contractor |
|---|---|---|---|
| Speed to onboard | Weeks: incorporation, registrations, banking | Days once documentation is ready | Days |
| Corporate presence required | Yes, a registered branch or subsidiary | No, employed through Dryft's local employer | No, direct services agreement |
| SUNAT, EsSalud and PLAME | You register and file monthly | Handled by Dryft | Contractor self-reports |
| Gratificaciones and CTS | You accrue and pay on two calendars | Accrued and paid by Dryft | Not applicable |
| Pension election (ONP or AFP) | You register each employee | Handled by Dryft | Contractor's own arrangement |
| Misclassification exposure | None, direct employment | None, statutory employment | High under the substance test |
| Termination liabilities | Direct exposure to severance claims | Managed compliantly by Dryft | Reclassification and back contributions |
| Best fit | Larger headcount, local contracts or operations | First hires and small nearshore teams | Short, autonomous project work |
What an employee costs in Peru
Peru's employer burden is lighter on social insurance and heavier on statutory bonuses than most of the region. EsSalud is the only classic social charge you pay; the real cost sits in the two gratificaciones and the CTS fund. Pension is the employee's cost. The guide's illustrative model uses a gross monthly salary of S/3,000.
| Component | Employer share | Notes |
|---|---|---|
| EsSalud (health) | 9% | Covers the employee and eligible dependents |
| Gratificación accrual | ~16.7% | Two payments, July and December, each about one month's pay |
| Bonificación extraordinaria | 9% of each gratificación | Paid to the employee in lieu of EsSalud on the bonus |
| CTS accrual | ~8.3% to 9.7% | Semi-annual deposits, commonly May and November, about one month a year |
| Seguro Vida Ley | ~0.5% | Life insurance from the applicable service threshold; rate varies by insurer |
| Statutory subtotal | ~S/1,080 to 1,120 on S/3,000 | The guide's example, before family allowance and profit sharing |
| Family allowance | Fixed amount tied to the RMV | Employees with dependent children under 18, or older if studying |
| Profit sharing | Statutory share of pre-tax profit | Larger companies in certain sectors only |
| Market-standard benefits | Varies | Private health, internet stipend, equipment |
| Total employer on-cost | ~30% to 40%+ | Above base salary; show as a range, not a fixed percentage |
For an employee on S/3,000 gross a month, the guide's illustrative model adds about S/270 of EsSalud, S/500 of gratificación accrual, S/45 of extraordinary bonus, S/250 to S/290 of CTS and S/15 of life insurance, for roughly S/4,080 to S/4,120 all-in. That excludes overtime, commissions, profit sharing and family allowance. Ask us for a cost model with current rates applied.
Payroll and tax
Peruvian payroll runs monthly in soles through a locally registered employer. Every employee is declared in the electronic payroll (Planilla Electrónica, PLAME) filed with SUNAT, which carries EsSalud, pension and income tax withholding for the month. Gratificaciones fall in July and December and CTS deposits in May and November, so the calendar has four extra events beyond the monthly run. Keep accurate time records to support overtime calculations and defend wage claims.
Withholding and pensions
The employer withholds employee income tax and remits it to SUNAT. Brackets are expressed in tax units (Unidad Impositiva Tributaria, UIT), a value SUNAT resets each year; the guide does not publish the bands, so use SUNAT's current tables. Pension contributions, generally 12.5% to 13% of gross, are also withheld from the employee, who elects between the public system (ONP) and a private fund (AFP) at onboarding. Model both when you discuss net pay.
Statutory minimum wage (RMV)
Peru sets a single national minimum wage, the Remuneración Mínima Vital (RMV), by supreme decree. It applies uniformly across sectors and regions; there are no occupation-based minimums. Night-shift workers get an enhanced floor under separate regulation. Sources reviewed in early 2026 cited an RMV of S/1,130 a month. Adjustments can arrive with limited notice, so confirm the in-force figure with the Ministry of Labor before quoting compensation. The family allowance is tied to the RMV, so a change moves that too.
Leave and mandatory benefits
- Paid vacation. 30 calendar days per year of completed service, subject to accrual rules.
- Public holidays. Peru observes a set of national holidays. Holiday work requires premium pay or compensatory rest.
- Gratificaciones. Two statutory bonuses a year, around Fiestas Patrias in July and Christmas in December, each generally equal to one month's remuneration. Two payments, not a single 13th month.
- CTS (Compensación por Tiempo de Servicios). Semi-annual deposits, commonly in May and November, building a fund that protects the employee during unemployment.
- Family allowance. A modest fixed amount tied to the RMV for employees with dependent children under 18, or older if still studying.
- Profit sharing. Larger companies in certain sectors distribute a statutory share of pre-tax profits.
- Sick leave. Employer-paid for an initial period, then EsSalud takes over for extended illness.
- Maternity and paternity. Paid maternity leave, commonly around 98 days, and a shorter paternity leave.
- Working time. Maximum 8 hours a day or 48 hours a week, commonly across 6 days. The first 2 overtime hours are paid at a minimum of 125% and further hours at 135%. A meal break of around 45 minutes and 24 consecutive hours of weekly rest are required.
Termination and notice periods
Peru has no at-will employment. The law strongly favours indefinite-term contracts; fixed terms are allowed only for legally recognised reasons such as a specific project, a market need or covering an absent worker, and a fixed term that is not properly justified and documented is deemed indefinite by operation of law. Probation is commonly up to 3 months, extendable for certain roles. After that, an exit is either for just cause, documented and communicated through the applicable procedure, or without cause, which triggers statutory severance tied to length of service, subject to caps. The guide publishes no notice-period schedule, so none appears here; write notice terms into the contract and confirm them with local counsel.
- Confirm cause before you act. Check whether a legally recognised cause exists, whether it is documented and whether the procedure has been followed. Poorly evidenced performance dismissals become severance claims.
- Protected categories. Pregnant employees and certain union representatives require a special procedure. Confirm status first.
- Final settlement (liquidación). Salary through the last day, proportional gratificación, proportional CTS not already deposited, unused vacation and any statutory severance, in a written settlement.
- Deregistration, property and IP. Remove the employee from EsSalud and the pension system, recover equipment and confirm confidentiality and IP obligations in writing.
Can I use independent contractors?
Only for genuinely independent work, and never as a way to avoid payroll cost. Peru applies a substance-over-form test built on three elements: subordination (the company directs and controls the work), personal service and remuneration. If the Ministry of Labor or SUNAT finds that a contractor works under company direction, on company premises or schedule, with company equipment, exclusively or near-exclusively for one client on an ongoing basis, the relationship is reclassified as employment. The company then owes back contributions for EsSalud, pension, gratificaciones, CTS and vacation, plus potential fines. Contractors remain workable for short, specialised engagements where the person runs their own business, sets their own hours and serves other clients. Put scope, deliverables, invoicing and IP assignment in writing. For anyone who works like an employee, an EOR is the compliant route.
The legal framework in brief
Peruvian employment law is codified across statutes and supreme decrees, with the RMV and the UIT reset by decree. The instruments and authorities you will hear referenced most:
- Ministry of Labor and Employment Promotion (Ministerio de Trabajo y Promoción del Empleo, MTPE). Sets the RMV, oversees working time, gratificaciones, CTS, profit sharing, foreign-worker quotas and termination procedure.
- SUNAT. The tax administration: withholding brackets, the annual UIT value, PLAME electronic payroll and employer registration.
- EsSalud. The public health insurer funded by the 9% employer contribution.
- ONP and private AFPs. The public pension office and the private fund administrators, supervised by the Superintendency of Banking, Insurance and AFPs (SBS). Employees elect one at onboarding.
- Law 27735. Governs the July and December gratificaciones.
- Supreme Decree 001-97-TR. The CTS regulation covering accrual and the May and November deposit windows.
- National Superintendency of Migration (Superintendencia Nacional de Migraciones). Grants the migratory status that authorises paid work, required before the start date. Certain employers also face limits on the share of foreign employees and foreign payroll, subject to exceptions.
Where the talent is
Peru offers a large, increasingly professionalised labour market at a meaningful cost advantage over the US and Western Europe. Lima anchors finance, technology and professional services; secondary cities provide lower-cost pools. Companies commonly hire for bilingual customer support, finance and accounting, software engineering and QA, sales development, executive assistance, LATAM regional support and BPO or shared-services operations.
| Region | Talent and industry concentration |
|---|---|
| Lima | Primary hub; finance, technology and professional services, plus customer support, shared services and BPO |
| Arequipa | Secondary city; lower-cost talent pool for the same functions |
| Trujillo | Secondary city; lower-cost talent pool for the same functions |
| Cusco | Secondary city; lower-cost talent pool for the same functions |
Peru Implementation Kit
This page tells you the rules. The kit tells you what to do, in what order, and what goes wrong when you skip a step. Built from Dryft's own onboarding checklist for Peru.
- Step-by-step implementation checklist, from hiring route selection to first payroll
- Confirming the current RMV with the Ministry of Labor
- SUNAT, EsSalud and PLAME registration sequence
- Pension election and enrolment: ONP versus AFP
- Fully loaded cost model covering EsSalud, gratificaciones, CTS and Seguro Vida Ley
- Accrual calendars for gratificaciones and CTS deposits
- Family allowance and profit-sharing applicability checks
- Termination playbook, liquidación template and immigration checks for foreign nationals
This guide is general information, not legal, tax or immigration advice. Peruvian employment rules change through supreme decrees adjusting the RMV and UIT and through labour reform. Confirm current figures with a qualified adviser or with Dryft before acting. Last reviewed September 2026.
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