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Peru has 9% EsSalud, mandatory gratificaciones (2 months extra/year), biannual CTS deposits, and profit sharing. The primacía de la realidad principle makes EOR strongly preferable for ongoing roles. Rippling EOR handles SUNAT, EsSalud, CTS, and gratificaciones compliance.
Peru is a South American economy with a growing technology, BPO, and professional services sector in Lima. Peru has a large, young workforce with growing English proficiency. EOR is popular for technology, financial services, and mining services companies accessing Peru's talent pool. The principle of primacía de la realidad (economic reality) makes EOR strongly preferable to contractor arrangements for ongoing, integrated roles.
Setting up a Peruvian SAC requires SUNARP registration, SUNAT employer registration, EsSalud registration, and T-Registro access. EOR is recommended for 1–10 employees or where CTS biannual deposit management and gratificaciones calculations are a complexity. Peru's primacía de la realidad principle makes EOR strongly preferable for any ongoing, integrated role.
AFP pension (private system): ~10% of gross salary (includes administrator commission ~1.5–1.7% + disability/life insurance ~1.35%). Or ONP (public system): 13%. Employee chooses one system at onboarding. Income tax (IR5): progressive 8–30% withheld monthly by employer via PDT Planilla.
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EsSalud (health insurance): 9% of gross salary. Total employer on-cost: 9% EsSalud + CTS accrual (approximately 8.33% of gross per month = 1 month per year) + gratificaciones (2 months per year, pro-rated). Real total employer cost approximately 30%+ above gross salary. Profit sharing obligation (5–10% of pre-tax profits) for covered employers.
Progressive 5-bracket using UIT multipliers: 8% (up to 5 UIT); 14% (5–20 UIT); 17% (20–35 UIT); 20% (35–45 UIT); 30% (above 45 UIT). 1 UIT = PEN 5,150 (2024). Monthly withholding via PDT Planilla to SUNAT.
Annual leave: 30 calendar days per year (after 1 year). Sick leave: employer pays first 20 days; EsSalud from day 21 (up to 11 months). Maternity: 98 days (49 pre + 49 post) paid via EsSalud. Public holidays: 14 national days.
Severance (unfair dismissal): 1.5 months' salary per year (max 12 months). On termination: CTS full balance paid out, gratificaciones pro-rated, unused leave (vacaciones truncas) paid. Notice: minimum 6 days; 30 days standard practice. Rippling EOR calculates full termination package.
Non-Peruvian nationals require a work visa. Types: designated activity visa, investor visa. Processing: 4–8 weeks. Rippling EOR supports visa applications through its Peruvian entity.
Statutory: EsSalud health insurance (employer 9%), mandatory gratificaciones (July + December = 2 months extra salary/year), CTS severance reserve fund (~1 month salary/year), 30 days annual leave, 98 days maternity paid via EsSalud, 14 public holidays.
Market standard: Private health insurance supplementary, performance bonus, Lima tech sector increasingly competitive with Colombia and Chile for talent.
Rippling EOR Peru operates through a local Peruvian entity. Key Peru-specific handling: T-Registro pre-start registration, EsSalud 9% contributions, PDT Planilla monthly income tax withholding, biannual CTS deposits (May 15 and November 15), gratificaciones payment (July and December), profit sharing calculation, and full termination package calculation (CTS payout + gratificaciones pro-rata + vacaciones truncas).
Gratificaciones are mandatory biannual bonuses: one full month's salary in July (Fiestas Patrias), one in December (Christmas). Pro-rated for partial periods. Since 2009, gratificaciones are exempt from AFP/ONP pension contributions. Budget for 2 additional months of salary per year from day one. Rippling EOR calculates and pays gratificaciones on schedule, pro-rated for partial years.
CTS (Compensación por Tiempo de Servicios) is Peru's mandatory severance reserve fund. Employers deposit approximately half a month's salary to the employee's designated CTS bank account on May 15 and November 15 each year. The full CTS balance is paid out to the employee on termination. Rippling EOR manages CTS deposits biannually and CTS payout on termination.
Peru requires employers with 20+ employees in covered sectors to distribute 5–10% of pre-tax profits to employees annually (percentage depends on sector). Distribution is split: 50% proportional to days worked; 50% proportional to salary. Due by May 31 of the following year. Rippling EOR calculates and distributes profit sharing for covered employers.
Severance for unfair dismissal: 1.5 months' salary per year of service, capped at 12 months. Notice for employers: depends on tenure (minimum 6 days; no formal maximum set by law but 30 days standard practice). On termination: full CTS payout, pro-rated gratificaciones, and unused leave (vacaciones truncas) must be paid. Rippling EOR manages full termination calculations.
