EOR Service in Peru

Hire, Onboard and Pay Employees in Peru Quickly and Efficiently

Hiring in Peru at a glance

CURRENCY
Peruvian Sol (PEN)
working hours
48 hours per week
public/bank holidays
12 public holidays
capital
Lima
language
Spanish
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Jan 1st to Dec 31st
minimum hourly salary
No minimum wage
CURRENCY
Peruvian Sol (PEN)
working hours
48 hours per week
public/bank holidays
12 public holidays
capital
Lima
language
Spanish
date format
DD/MM/YYYY
tax year
Jan 1st to Dec 31st
payroll frequency
Monthly
GDP
$242,632 million

Employer of Record in Peru

A Peru Employer of Record (EOR) plays a crucial role in simplifying the hiring process and ensuring compliance with labor laws. By partnering with an EOR, businesses can concentrate on their core operations while delegating HR tasks, payroll management, and statutory employment requirements. This collaboration offers a cost-effective solution for employers to hire and expand into new markets without the need to set up a legal entity, 

Why use Peru EOR?

Businesses mainly partner with an Peru Employer of Record (EOR) or Professional Employer Organization (PEO) to hire in foreign territory without a local entity and to stay compliant in the hiring country. 


This is because starting a new entity in Peru involves consulting with legal experts, accounting costs, bank account setup. Collectively, this costs you several thousand dollars and can set your hiring and expansion plans by several months. Partnering with an EOR can help you skip these hassles and start hiring immediately. 

Secondly, Peruvian labor laws have some unique aspects that even experienced employers may tend to miss. For example, in July (for Fiestas Patrias) and December (for Christmas), workers are entitled to an extra salary, known as "gratification." Another unique law is that companies operating with more than 20 employees in specific economic sectors (like mining or telecommunications) are required to distribute a portion of their annual pre-tax profits among their employees. The percentage varies by sector.


Partnering with an EOR with deep knowledge of the local business landscape, cultural nuances, and regulations, empowers businesses to achieve rapid growth and success in Peru's market.

EOR Costs in Peru

The pricing for Peru Employer of Record (EOR) or Professional Employer Organization (PEO) services can vary depending on factors like the number of employees, scope of services, and project complexity. Generally, Peru EOR/PEO services are offered at a monthly fee per employee or as a percentage of their salary. Additional charges might apply for personalized solutions or specialized services tailored to specific business needs. When considering the overall cost and benefits of partnering with a Peru EOR/PEO, companies should carefully evaluate these factors to make an informed decision.

Key Metrics For Foreign Employers 

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Peru.

Factors Global Ranking Interpretation
Rule of law 82 Indicates effectiveness of law enforcement
Labour-employer cooperation 98 Indicates positive labor-employee relationships
Reading Maths, and Science 65 Indicates average scores in OECD's survey of 15-year old students
University Ranking 52 Indicates average QS rankings
Labour productivity per employee 85 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 80 Indicates findability of skilled talent
Workforce with tertiary education 70 Indicates % of workforce with PG degrees
Digital Skills n/a Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Peru.

Why work in Peru?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Peru

Expanding your team in Peru requires navigating the complexities of local employment regulations and effectively managing compliance, payroll, tax, and benefits.

With Gloroots' Peru Employer of Record (EoR) service, you can confidently delegate the intricacies of payroll, tax, benefits, and compliance to our experienced team. This enables you to focus on your core business operations, empowering your workforce and driving business growth. Our Peru EoR & PEO ensures strict adherence to all local laws and regulations, providing a seamless and efficient solution for successful team expansion in the country. With access to a diverse pool of exceptional talent and our market expertise, Gloroots' Recrew platform makes recruiting in Peru a seamless and rewarding experience, contributing to your company's success and development.

Risks of misclassification

Misclassifying employees in Peru can lead to legal and financial risks, including claims for unpaid wages and benefits. Partnering with a PEO/EOR ensures proper employee classification, compliance with labor laws, accurate payroll processing, and access to comprehensive benefits, mitigating potential liabilities and allowing businesses to focus on core operations.

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Avoid hefty penalties with Gloroots.

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Employing in Peru

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

INCOME TAX

Employee Income Tax

Income Range (in PEN) Tax Rate
Up to 5 UIT 8.00%
From 5 UIT to 20 UIT 14.00%
From 20 UIT to 35 UIT 17.00%
From 35 UIT to 45 UIT 20.00%
More than 45 UIT 30.00%

Employer Payroll Contributions

Contribution Type Rate
Health Insurance (National Health System (EsSalud)/ Private Health System (Entidades Promotoras de Salud or EPS) 9.00%
Total Employment Cost 9.00%

Employee Payroll Contributions

Payroll Contribution Contribution Rate
Pension Fund (13% for employees affiliated with the National Pension System or circa12.5% for employees affiliated with the Private Pension System) 12.50% to 13.00%
Total Employment Cost 12.50% to 13.00%

Separation

Termination Process

The termination process in Peru depends on the employment agreement, collective agreement, contract type, and reason for termination. Employees should receive a written notice of at least six days, allowing them to respond or demonstrate their capabilities within the company. The employer is required to provide written termination to both the employee and the trade union.

In cases of dismissal without cause, employees are generally entitled to receive severance pay, which can be up to 12 months' worth of compensation.

Severance Pay

There is no mandated severance entitlement, but in cases of unfair dismissal (when the company lacks a valid legal reason to terminate employees), an indemnity is payable.

For unfair dismissal on an indefinite employment contract, employees are entitled to receive a legal indemnity equivalent to 1.5 times their monthly remuneration for each year of service. If the employee is on a fixed-term contract, periods less than one year will be paid proportionally at 1.5 times their monthly remuneration for each month remaining until the end of the contract, if applicable. The indemnity in both cases cannot exceed 12 monthly salaries.

Notice Periods

Employers are required to provide notice of 6 to 30 days, depending on the reason for dismissal. Conversely, if an employee decides to resign, they must give the employer a minimum of 30 days' notice.

Probation Periods

In Peru, employment contracts specify probation periods, which typically last for three months. However, for skilled workers or employees in positions of trust, the probationary period can be extended to six months, and for managerial roles, it may last up to one year.

Start Hiring in Peru today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

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Experience Seamless Hiring in Peru?

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