Peru

Employment taxes

• Income tax: Employees pay progressive rates between 8% and 30% depending on annual income.
• Social contributions: Employees contribute 13% of their salary to the national pension system or private AFP funds.
• Employers cover additional costs for health insurance (around 9% of salary).
• Taxes are deducted directly from your monthly paycheck.

Leave policy

• Annual vacation: 30 calendar days per year after completing one year of service.
• Public holidays: Around 12 national holidays annually.
• Sick leave: The first 20 days are paid by the employer; beyond that, Social Security (EsSalud) covers payment.
• Maternity leave: 98 days total, fully paid by the Social Security (EsSalud).
• Paternity leave: 10 paid days at 100% by the employer.
• Parental leave: In Peru, no law covers parental leave.

Employment termination

• Must be based on a valid cause or mutual agreement.
• Notice period: Typically 30 days, unless termination is immediate for serious misconduct.
• Severance pay: For unjustified dismissal, employees receive 1.5 monthly salaries per year of service, capped at 12 months.
• Written notice and proper documentation are mandatory to ensure compliance.

Hiring and contracts

• Common contract types: Indefinite, fixed-term, and temporary/project-based.
• Written contracts are mandatory and must be in Spanish or can be bilingual.
• A contract must include: employee details, salary, working hours, job title, duration, and benefits.
• Probation period: Up to 3 months, extendable to 6 months for trusted or management roles.

Payroll and salary payments

• Payroll is typically paid monthly.
• Salaries are paid in Peruvian Sol (PEN).
• The national minimum wage in Peru is 1,130 PEN (approx. €250 / $270 USD) per month.
• Payslips are mandatory and must show: gross salary, deductions, benefits, and net pay.

Benefits

Mandatory:

• Health insurance (EsSalud)
• Pension contributions (ONP or AFP)
• Two annual bonuses: one in July (Independence Day) and one in December (Christmas)
• Compensation for length of service (CTS), equal to roughly one monthly salary per year

Optional:

• Private health coverage
• Meal allowances, transportation, or flexible benefits
• Training or tuition reimbursement

Monthly living cost (Lima Edition)

• Rent (1-bedroom apartment): 1,800–2,500 PEN (€440–610 / $470–670)
• Utilities: 250–400 PEN (€60–100 / $65–110)
• Public transport: 4–6 PEN (€1–1.5 / $1.2–1.6) per ride
• Groceries: 800–1,000 PEN (€190–240 / $210–260)
• Dining out: 30–60 PEN (€7–15 / $8–16) for a good meal

How to get a local ID number

• Foreign workers need a Carné de Extranjería, which serves as the resident ID.
• Once you have a work visa or residency, you can apply at Migraciones del Perú.
• For remote workers on short-term stays, a tax identification number (RUC) may be required for invoicing.

Social security registration

• Employers register employees with EsSalud, Peru’s public health insurance system.
• Once registered, employees are covered for medical care and sick leave benefits.

Banking

Popular banks in Peru include:

• BBVA Perú
• BCP (Banco de Crédito del Perú)
• Interbank
• Scotiabank Perú

To open an account, you’ll need your passport or local ID, proof of address, and sometimes your work contract.

Housing and rental process

• Most rentals require one or two months’ deposit plus the first month’s rent.
• Contracts are usually for 12 months, but can be negotiated.
• Tenant rights: landlords must provide proper notice before eviction and maintain habitability standards.

Healthcare system

• The public healthcare system (EsSalud) covers basic medical services.
• Many expats choose private insurance for faster access and a wider hospital network.
• Private hospitals in Lima offer excellent care.

Driving and public transport

• Public transport includes buses, minibuses, and Lima’s Metropolitano.
• Ride-sharing apps like Uber, Cabify, and InDriver are widely used.
• To drive, you can use your foreign license for up to six months, after which you’ll need a Peruvian license.

Emergency and important contacts

• Police: 105
• Ambulance: 106
• Fire department: 116

Work permit and visa requirements

Most foreign nationals need a visa to work in Peru. The type depends on nationality and purpose of stay.

The main option for employees is the Resident Worker Visa (Visa de Residente – Trabajador), which allows you to live and work legally in Peru. It’s usually valid for one year and can be renewed. Other visa types include:

• Designated Worker Visa – for employees temporarily assigned by a foreign company to a project in Peru.
• Investor Visa – for those making a significant business investment.
• Independent Professional Visa – for self-employed individuals offering professional services.

To qualify for a work visa, you’ll need a valid employment contract approved by the Ministry of Labor (MTPE) and a sponsoring employer registered in Peru. The process include:

• Labor contract approval by the MTPE.
• Visa application at a Peruvian consulate or directly in Peru.
• Arrival and registration – once in Peru, apply for a Resident ID (Carné de Extranjería) at Migraciones.
• Typical documentation: valid passport, approved contract, background check, medical certificate, education credentials, and proof of fees paid.
• Processing times vary, but expect several weeks for each step (labor approval, visa issuance, and residency card).

Business culture and work norms

• Meetings start formally but end warmly.
• Hierarchies are respected, but collaboration is valued.
• Punctuality is appreciated but not always strict; patience goes a long way.
• Dress code: business casual, with more formality in corporate sectors.