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Peru has EsSalud health insurance (9% employer), mandatory gratificaciones (2 extra months' salary/year), CTS severance reserve fund, and profit sharing obligations. T-Registro registration required before employee start date. Rippling handles SUNAT, EsSalud, and CTS compliance.
Peru is a South American economy with strengths in mining (copper, gold, silver), agriculture, fishing, and a growing technology and BPO sector in Lima. Lima is by far the primary business hub. Peru has a large, young workforce with growing English proficiency in the tech sector. Peru uses the Peruvian sol (PEN). Peru is a popular EOR destination for companies accessing South American tech talent.
| Contribution | Rate | Notes |
|---|---|---|
| EsSalud (health insurance) | 9% | On gross salary; mandatory employer contribution |
| SCTR (accident insurance) | Varies | Mandatory for high-risk activities; rate set by insurer |
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| Contribution | Rate | Notes |
|---|---|---|
| AFP pension (private system) | ~10% | On gross salary; includes commission ~1.5–1.7% and disability/life insurance ~1.35% |
| ONP pension (public system) | 13% | Alternative to AFP; employee chooses one system |
| Income tax (IR5) | 8–30% | Progressive; withheld monthly by employer |
| Annual Income (UIT multiples) | Rate |
|---|---|
| Up to 5 UIT (approx. PEN 25,750) | 8% |
| 5–20 UIT | 14% |
| 20–35 UIT | 17% |
| 35–45 UIT | 20% |
| Above 45 UIT | 30% |
1 UIT = PEN 5,150 (2024). Employer withholds monthly via PDT Planilla and remits to SUNAT.
CTS paid out on termination (full balance). Gratificaciones pro-rated to last day. Severance for unfair dismissal: 1.5 months' salary per year of service (max 12 months). Notice: 6 days for workers with less than 1 year; thereafter per contract. Vacaciones truncas (unused leave) paid on termination.
Gratificaciones are Peru's mandatory biannual bonus payments: one full month's salary in July (Fiestas Patrias — national holidays) and one full month's salary in December (Christmas). Both are pro-rated for partial periods. Since 2009, gratificaciones are exempt from AFP/ONP pension contributions. They are fully taxable for income tax purposes. Budget for 2 additional months of salary per year.
CTS (Compensación por Tiempo de Servicios) is Peru's mandatory severance reserve fund. Employers deposit CTS equivalent to approximately 1 month's salary per year into a designated bank account in the employee's name twice per year (May 15 and November 15). The employee can access a portion during employment for certain purposes. CTS is the employee's economic safety net on termination.
Peru's minimum wage is PEN 1,025/month (Remuneración Mínima Vital — RMV) as of 2024. Peru has been increasing its minimum wage to address cost-of-living pressures. The RMV is set by the government and applies across all sectors.
Peru requires employers to distribute 5–10% of pre-tax profits to employees annually, depending on the sector: 10% for fishing and telecommunications; 8% for industry, mining, and commerce; 5% for other sectors. The distribution is made in two parts: 50% proportional to days worked; 50% proportional to salary. Employers with 20+ employees in covered sectors are required to distribute.
