Peru

• New Year's Day
• Maundy Thursday
• Good Friday
• Labour Day
• Feast of St. Peter and St. Paul
• Independence Day
• Independence Day Holiday
• Santa Rosa de Lima
• Battle of Angamos
• All Saints' Day
• Immaculate Conception Day
• Christmas Day

Working Hours

Employees can work up to eight hours a day, or 48 hours per week.

Minimum Wage

Effective 1^st January 2025, the minimum wage is set at PEN 1,130.

Employee Tax

Annual income*	Tax rate
Up to 5 Tax Units	8%
5 - 20 Tax Units	14%
20 - 35 Tax Units	17%
35 - 45 Tax Units	20%
More than 45 Tax Units	30%
Pension fund**	12.5 - 13%

*Peru’s tax system uses tax units to measure taxable income. One tax unit is equal to PEN 4,600.

**13% for employees affiliated with the National Pension System or 12.5% for employees affiliated with the Private Pension System.

Bonuses

There are two mandatory bonuses within the year, which are equivalent to two monthly remunerations. In addition, employees are entitled to semi-annual deposits of 8.33% of the wages earned each semester.

There are no restrictions or requirements for employment contracts in Peru.

Peruvian labour law allows for the following types of contract:

• Indefinite full-time contracts
• Part-time contracts (average of
• Fixed-term contracts (including temporary, occasional, and replacement work)

Remote work contracts:

Employer and employee may conclude a teleworking employment contract which must include:

• Whether the remote work is partial or total.
• The period of remote work.
• The minimum notice period for the employee to attend in person to the employer’s premises.
• The work schedule.
• The employee’s domicile.
• The communication, supervision, and control mechanisms.
• The applicable digital platforms and technologies.
• Provisions prohibiting the use of third parties for the provision of services.

The employer has the following obligations:

• Provide the employee with work tools, internet, and to assume the cost of electricity, unless the employee takes charge of what is indicated in exchange for financial compensation; and
• Ensure employee’s safety and health by informing the remote worker of all the risks that may arise from employment duties. The remote employee should allow the employer to enter the remote workspace to assess health and safety risks and incorporate safety measures.

Annual Leave

Minimum of 30 days' paid holiday per year.

Sick Leave

Up to 11 months and 10 days’ fully paid sick leave. Employers must pay the employee for the first 20 days of sickness absence. From the 21st day, sick pay can be claimed from Social Security.

Parental Leave

• Maternity leave: 98 calendar days' paid leave.
• Paternity leave: 10 calendar days' paid leave.

Termination Process

Employers in Peru can terminate a contract, provided they give notice and/or compensation in line with legal requirements.

Grounds for termination include:

• Project completion
• Mutual consent
• Permanent and total disability
• Employer bankruptcy
• Redundancy
• Inadequate productivity
• Serious misconduct

Employees can also end a contract, by giving notice in line with the terms of their contract.

Severance Pay

There is no specific redundancy pay required under Peruvian law. However, employees who have been terminated without cause are entitled to severance payments for up to 12 months.

Global Master Insurance Coverage with Mauve’s Employer of Record Solution
Under a Mauve Group Employer of Record (EOR) solution, clients and their international workers benefit from access to Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance framework that supports global compliance across all Mauve entities.

This international insurance coverage ensures legal and regulatory alignment through a combination of a central master policy and country-specific local policies, where required by law. This allows companies to remain fully compliant when expanding their workforce globally or employing staff overseas.

The Global Master Insurance Programme includes the following coverage:

• Employer’s Liability and Public Liability – £10,000,000 combined limit
• Professional Indemnity – £5,000,000 limit
• Worker’s Compensation – Varies depending on the employee’s location

Whether you're expanding internationally or managing global teams, Mauve’s EOR services and insurance support streamline your operations and reduce risk. For tailored advice on mandatory insurance requirements in specific countries, contact Mauve’s international HR consulting team today.