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

PEN 1,025 per month.

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 <4 hours per day)
• Fixed-term contracts (including temporary, occasional, and replacement work)

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: at least 90 days' paid leave.
• Paternity leave: four 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.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.