Hire Employees in Peru as a Foreign Company Using an EOR.
Peru is one of Latin America's fastest-growing economies with strong talent in software development, mining, finance, and professional services. RecruitGo handles employment contracts, EsSalud contributions, CTS deposits, gratificaciones, pension enrollment, and payroll in PEN so you can hire compliantly without a local entity.
What Is an Employer of Record in Peru?
An Employer of Record (EOR) is a locally registered company that legally employs workers in Peru on your behalf. RecruitGo's Peruvian entity becomes the legal employer under Peru's labor legislation (Ley de Productividad y Competitividad Laboral, Decreto Supremo 003-97-TR). We sign the employment contract, register the employee with EsSalud (health insurance) and their chosen pension fund (ONP or AFP), manage monthly payroll in PEN, calculate and deposit CTS (severance savings) twice yearly, pay the two mandatory gratificaciones (bonuses) in July and December, and handle all reporting to SUNAT.
You retain full control over the employee's work, schedule, and responsibilities. They report to you, work on your projects, and function as part of your team.
Why EOR matters in Peru: Peru requires two separate annual bonus payments (gratificaciones in July and December, each equal to one month's salary), a twice-yearly severance fund deposit (CTS in May and November), an extraordinary bonus of 9% on each gratificacion, mandatory profit sharing for companies with 20+ employees, and a 48-hour maximum workweek. Combined with EsSalud contributions and pension obligations, the total employer cost adds approximately 40 to 50% on top of gross salary.
Who Should Use EOR in Peru?
What It Costs to Hire Through EOR
Peru's employer burden includes EsSalud (9%), two gratificaciones (16.67% annually), CTS (~8.33%), the extraordinary bonus on gratificaciones, and Vida Ley life insurance. Total loaded cost is typically 140 to 150% of gross salary.
| Component | Monthly (PEN) | Rate / Basis |
|---|---|---|
| Gross salary | 5,000 | — |
| EsSalud (health insurance) | 450 | 9% |
| Gratificaciones provision | 833 | 16.67% (2 extra months / 12) |
| CTS provision | 486 | ~9.72% (1 month + 1/6 gratificacion per year) |
| Extraordinary bonus provision | 75 | 9% of gratificacion amount |
| Vida Ley (life insurance) | ~8 | ~0.16% (varies by insurer) |
| Total employer cost | ~6,852 | ~137% |
* Minimum wage as of 2025 is PEN 1,130/month. Profit sharing (5 to 10%) applies to companies with 20+ employees. Pension contributions (13% ONP or ~12-13% AFP) are borne by the employee. Family allowance of 10% of minimum wage applies for employees with dependent children. EOR management fee not included above.
Peru has a 13th AND 14th month salary: Unlike most countries that mandate a single 13th month bonus, Peru requires two: one in July (Fiestas Patrias) and one in December (Navidad). Each equals one full month's salary. On top of that, the employer pays an extraordinary bonus of 9% on each gratificacion directly to the employee. Your EOR provisions monthly so there are no cash flow surprises.
How Hiring Works Through EOR
You share the role, salary in PEN, location, and start date. We check for applicable CBAs, confirm whether profit sharing applies, and return a full cost breakdown within 24 hours.
We draft an employment contract compliant with DS 003-97-TR. We register the employee with EsSalud, enroll them in their chosen pension system (ONP or AFP), obtain Vida Ley insurance, open their CTS bank account, and set up income tax withholding with SUNAT.
We run monthly payroll in PEN, deduct employee pension (13% ONP or ~12-13% AFP) and income tax, and remit EsSalud (9%). In May and November, we deposit CTS. In July and December, we pay gratificaciones plus the 9% extraordinary bonus. We administer family allowance for eligible employees.
We track minimum wage adjustments, profit-sharing calculations, CTS withdrawal rule changes (currently 100% withdrawal allowed until Dec 2026), pension reform developments, and SUNAFIL inspection requirements. We file all obligations through SUNAT's T-Registro and PLAME.
EOR vs Peruvian Entity vs Contractors
| EOR | S.A.C. / S.R.L. | Contractor | |
|---|---|---|---|
| Time to first hire | 3 to 5 days | 4 to 6 weeks | Immediate |
| Setup cost | None | USD 1.5K to 5K+ | None |
| Social security | Handled by EOR | Your responsibility | Contractor's own |
| CTS, gratificaciones, Vida Ley | Managed by EOR | Your responsibility | Not applicable (risk if misclassified) |
| Electronic payroll (T-Registro, PLAME) | Handled by EOR | Your responsibility | Not applicable |
| Profit sharing | EOR manages calculation and payment | Your responsibility | Not applicable |
| Best for | 1 to 20 people, speed | 30+, permanent ops | Defined projects, true autonomy |
Contractor misclassification risk: Peru's labor courts apply the "primacia de la realidad" principle. If a worker classified as a contractor actually operates under subordination, the court will reclassify as employment. This triggers backdated EsSalud, CTS, gratificaciones, vacation pay, and indemnity. SUNAFIL fines can reach PEN 139,742.
Employee Benefits and Leave Entitlements
Mandatory annual benefits
Leave entitlements
Termination Rules and Severance
Peru does not follow at-will employment. Employers must have a valid legal reason (causa justa) for dismissal. Termination without cause triggers indemnity payments.
Termination without cause (despido arbitrario)
| Contract type | Indemnity |
|---|---|
| Indefinite-term | 1.5 monthly salaries per year of service (pro-rated). Capped at 12 monthly salaries. |
| Fixed-term | 1.5 monthly salaries for each month remaining on the contract. Capped at 12 monthly salaries. |
Termination with just cause
Requires formal pre-dismissal procedure: written notice of charges (carta de preaviso), at least 6 calendar days for employee response (30 days for capacity-related), then termination letter. Failure to follow procedure converts dismissal to arbitrary termination with full indemnity.
Probation period
Standard: 3 months. Extended to 6 months for skilled workers and 12 months for management. During probation, either party can terminate without indemnity, but accrued benefits must still be paid.
Working Hours and Overtime
Peru has a 48-hour maximum workweek (8 hours/day, 6 days/week or distributed). Night shift (10 PM to 6 AM) carries a minimum 35% surcharge.
| Scenario | Rate |
|---|---|
| First 2 hours of daily overtime | 125% of hourly rate |
| Beyond 2 hours of daily overtime | 135% of hourly rate |
| Night shift surcharge (10 PM to 6 AM) | Minimum 35% surcharge |
| Sunday / holiday work | 100% surcharge (double pay) or compensatory day off |
| Rest day work (no compensatory day) | Triple pay |
Frequently Asked Questions
Total employer cost is typically 140 to 150% of gross salary. This includes EsSalud (9%), gratificaciones provision (16.67%), CTS provision (~9.72%), extraordinary bonus provision (~1.5%), and Vida Ley (~0.16%). Profit sharing is additional and depends on your industry. The EOR management fee is on top.
Two mandatory bonus payments per year, each equal to one full month's salary. Paid by July 15 (Fiestas Patrias) and December 15 (Navidad). Pro-rated for partial semesters. Gratificaciones are exempt from pension and EsSalud deductions, but the employer pays a 9% extraordinary bonus directly to the employee.
CTS (Compensacion por Tiempo de Servicios) is a mandatory severance savings fund. The employer deposits approximately one month's salary per year in two semiannual installments (May 15 and November 15). Under Law 32322, employees can withdraw up to 100% of their CTS balance until December 31, 2026.
Peru does not allow at-will dismissal. Termination without cause triggers indemnity of 1.5 monthly salaries per year of service, capped at 12 months. Termination with cause requires a formal pre-dismissal procedure with written charges and a 6-day employee response period.
Companies with 20+ employees must share a percentage of pre-tax profits: mining 8%, fishing 10%, telecoms 10%, industry 10%, commerce 8%, other 5%. Individual share capped at 18 monthly salaries. Due within 30 days of annual income tax filing.
Two parallel systems: ONP (public, 13% flat rate, defined benefit) or AFP (private, ~12-13%, individual savings). Employees choose at hire. Four AFP providers: Integra, Prima, Profuturo, Habitat.
Yes, through locacion de servicios, but only for genuinely independent work. Peru's labor courts apply primacia de la realidad — if the worker operates under subordination, they'll be reclassified as an employee. SUNAFIL fines for misclassification can reach PEN 139,742.
Typically 3 to 5 business days. Setting up your own S.A.C. or S.R.L. entity takes 4 to 6 weeks.
Employer and Employee Contributions
Peru's social security system is simpler than Brazil or Colombia but still requires careful management. The employer pays EsSalud at 9%. The employee chooses between the public pension (ONP) or a private pension fund (AFP).
Employer contributions
Employee contributions (deducted from salary)
Pension choice matters: Employees must choose between ONP (public, 13% flat, defined benefit) or an AFP (private, ~12-13%, individual savings). The choice is made at hire and is difficult to change. Four AFP providers: Integra, Prima, Profuturo, Habitat. Your EOR handles enrollment in either system.