Country Guide
Employer of Record in Peru
Capital City
Canberra
Languages
English
Currency
Australian dollar ($, AUD)
Population Size
25,771,300
Employer Taxes
18.45%
Employee Costs
2%
Payroll Frequency
Monthly
Hire Globally, Pay Locally, Expand Effortlessly
When expanding your business abroad, INS Global streamlines the entire process for you. Through collaboration with our skilled Employer of Record in Peru, you can effortlessly attract, recruit, and supervise employees without needing to establish a local entity. All the while, you will effectively navigate the intricate challenges and expenses of expanding internationally.
Our PEO solutions in Peru provide a secure, streamlined, and economical approach to acquiring, employing, and managing local talent. With INS Global’s exceptional PEO services accessible in Peru and more than 100 countries worldwide, you can effortlessly oversee a diverse, multinational workforce from any location across the globe.
By acting as the authorized employer, our dedicated Employer of Record (EOR) in Peru assumes responsibility for all HR-related activities on your behalf. This efficient process allows you to expand within a week, thereby minimizing the time and expenses typically associated with growing your business overseas.
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Why Choose an EOR in Peru Over Company Incorporation?
Establishing a new company overseas doesn’t just take time; it can also seriously impact your overheads in Peru. EOR services streamline the process and allow you to expand into a new market at a fraction of the cost in less than a week.
Working with a Peruvian EOR…
- Saves time
- Lowers expansion costs
- Ensures legal compliance
- Handles the HR for you
PEO/EOR vs Company Incorporation
The Advantage in Figures
PEO/EOR
Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
Advantages of Using a Professional Employer Organization in Peru
Assured Legal Compliance
PEOs in Peru have local expertise and can help you attract and manage talent internationally while abiding by complicated local labor laws. This provides you with top talent while ensuring that everything is in line with the latest regulations.
Reduced Expansion Costs
Working with a local Employer of Record allows you to expand globally at a fraction of the cost. Since you don‘t have to worry about setting up a new entity in that country, you can focus on building your company while managing staff remotely and reducing overheads.
Focus on Growing Your Business
PEOs take care of all the HR-related responsibilities so that you can focus on international growth. Partnering with a local EOR/PEO in Peru empowers your business and employees to stay focused on your goals while we handle all the admin for you.
Expand Seamlessly
If you were to set up a new entity abroad, the entire process can take anywhere from 4 to 12 months. Alternatively, working with a EOR in Peru streamlines the process so that you can launch in a new market within a week.
Manage Your HR Remotely
INS Global offers you a way to manage your international workforce online. With a cutting-edge, cloud-based HR platform, you can keep your finger on the pulse from anywhere in the world.
How Does an EOR In Peru Work?
INS Global’s PEO in Peru allows your company to expand abroad in just 4 simple steps.
1
We work with your business to create a strategic expansion plan.
2
Our organization provides the legal entity that will recruit and hire employees.
3
We handle HR-related tasks such as hiring, contracts, and payroll management to ensure compliance with local laws.
4
Your employees focus on your operational goals while we take care of all the HR and legal compliance needs.
The Difference Between PEO And Employer of Record Services in Peru?
When expanding abroad, you may be considering working with a PEO (Professional Employment Organization) or an EOR (Employer of Record) in Peru. Here’s a quick look at what you need to know about these two options.
- PEOs offer HR-related services to staff and handles tasks such as processing payroll, tax deductions, and contract management.
- EORs are very similar to PEOs but can also legally recruit and hire employees on your behalf.
- In a PEO arrangement, the primary employment contract is established between you and the employee.
- In an EOR arrangement, you direct the contract, but it is made between the EOR and the employee on behalf of your business.
INS GUIDES
Check Our Labor Law Guide
Labor Law in Peru - 2025
Employment Contracts In Peru
- Employment in Peru should always come with a written offer of employment.
- Employers can include a probation period for the first 3 months but can extend this to 6 months for skilled workers. Probation periods can also extend to 1 year for managerial roles.
- Employers can terminate employees without severance during or after the probation period.
Working Hours In Peru
- The working week runs from Monday to Friday in Peru.
- Full-time employees typically work 8 hours per day or 40 hours per week.
- Part-time employees work 20 hours per week and can’t work more than 40 hours.
- Employees are entitled to a higher hourly rate for overtime. This is 125% of the normal hourly rate for the first 2 hours and 135% for the remaining hours.
Notice Period
- Employees typically get between 6 and 30 days’ notice, depending on why they are dismissed. If an employee is resigning, they should give employers 30 days’ notice.
- Employees being dismissed without cause are entitled to severance of up to 12 months.
- If an employee is dismissed unfairly, they can get 1.5 times their monthly salary for each month remaining on their contract. If they have an indefinite contract, they are entitled to 1.5 month’s salary for every year of service.
Types Of Leave
Annual Leave in Peru
- Peru has 14 official public holidays.
- Employees are entitled to at least 30 calendar days of paid time each year.
- At least 15 days of leave must be taken during the year. The remaining 15 can be cashed out.
- Domestic workers are also entitled to 15 days of paid annual leave.
Sick Leave in Peru
- Peruvian labor law allows employees to take 365 days of sick leave.
- Employees should notify their employers before the working day and provide a medical certificate as proof of illness.
- Employers are required to pay 100% of their salary for the first 20 days of sick leave.
- The remaining days are usually paid for by the employer at a rate of 70% to 80% and are claimed back from the social security fund.
Maternity / Paternity Leave in Peru
- According to Peruvian labor law, female employees are entitled to 98 days of maternity leave, 49 days before and 49 days after the birth of their child.
- Maternity leave can be extended by 30 days if the employee has multiple children or if there are any complications at birth.
- The National Health System or Private Health System compensates female employees during maternity leave if they have completed 3 months of service.
- Female employees also receive 30 days of maternity leave if they are adopting a child.
- Male employees are entitled to 10 days of paid paternity leave after the birth of their child.
- Paternity leave can increase to 20 days in the case of multiple births or complications at birth.
Tax Laws in Peru
- Employers in Peru are responsible for deducting all taxes and social contributions.
- Employers in Peru contribute 9% towards health insurance for every employee.
- Employees contribute 13% to the social pension fund.
- Corporate income tax is set at 29.5%.
- Personal income tax in Peru can vary depending on the salary of the employee. This rate ranges from 8% to 30% based on the table below.
1 Tax Unit (UIT) = 4,600 PEN
8% Up to 5 UIT
14% 4 UIT to 20 UIT
17% 20 UIT to 35 UIT
20% 35 UIT to 45 UIT
30% More than 45 UIT
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Frequently Asked Questions
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
EOR services streamline your expansion strategy, and the costs typically depend on a percentage of your employees’ salaries.
Certainly, collaborating with an Employer of Record in Peru is both a legal and efficient solution that streamlines your expansion plans while reducing costs.
Salaries are typically processed monthly for full-time employees, while part-time workers may prefer weekly or bi-monthly payments. Employers are responsible for deducting taxes and social contributions.
INS Global simplifies and streamlines remote recruitment, hiring, and personnel management, reducing the costs associated with overseeing an international workforce.
Absolutely, a Peruvian Employer of Record can recruit and hire employees from all regions, expanding your talent pool.
Modifications to employment contracts require mutual agreement in Peru. Employer of Record services ensure compliance with all local labor laws in these situations.
Yes, employers in Peru are responsible for deducting taxes and social contributions from their employees’ salaries.
INS Global customizes its services to meet your specific requirements, assisting you in recruiting and hiring as many employees as needed for your expansion plans.
Employees being dismissed without cause are entitled to severance of up to 12 months. If an employee is dismissed unfairly, they can get 1.5 times their monthly salary for each month remaining on their contract. If they have an indefinite contract, they are entitled to 1.5 month‘s salary for every year of service.
In Peru, you can hire employees for in-person and remote positions, ensuring cost efficiency during market entry.
Certainly! Our recruitment experts possess extensive experience in sourcing top talent globally. We provide comprehensive support in recruiting, hiring, and managing your workforce, regardless of your location.
Peru observes 15 national holidays, and most employees are entitled to a paid day off. Working on these holidays usually involves receiving a higher hourly rate.
Employers must adhere to strict labor laws and regulations to avoid penalties and fines. Collaborating with an experienced PEO in Peru ensures compliance during a seamless expansion.
INS Global facilitates the recruitment and management of a diverse workforce remotely, making hiring both Peruvian citizens and foreign nationals safe and easy.
A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.