Private-sector employment in Peru is governed by a set of labour laws administered by the Ministry of Labour (MTPE) and enforced by SUNAFIL. Two statutory bonuses a year and a severance fund (CTS) are major parts of pay. Here is what employers need to know about leave, pay, tax and ending employment.
The figures below apply under the general labour regime. Micro and small businesses registered under the special MYPE regime can offer reduced benefits, such as 15 days of annual leave.
Calendar days of paid leave after each full year of service. Employees may agree to sell up to 15 of those days back to the employer.
49 days before and 49 days after the birth, which can be rearranged with medical approval. Paid as an EsSalud subsidy. 30 more days for multiple births or a child with a disability.
Consecutive calendar days of paid leave, paid by the employer. Longer for premature or multiple births and serious complications.
The employer pays the first 20 days of incapacity in a year. After that, EsSalud pays a temporary incapacity subsidy.
Leave is earned once the employee has completed a year of service and met the minimum attendance requirement. The timing is agreed between employer and employee, and leave can be split into shorter periods within the limits set by law. Leave not taken in the following year gives rise to additional compensation.
Set up each Peruvian leave type in IceHrm with its own accrual, carry forward and approval rules, including different entitlements for staff under the MYPE regime. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The minimum wage (Remuneración Mínima Vital, RMV) is set by supreme decree and applies to a full working day of 8 hours or 48 hours a week.
In force since 1 January 2025 and still current in September 2026.
Per day and per week. Management and trusted positions can be excluded from the maximum.
Two statutory bonuses, each equal to one month’s pay, paid in July and December, plus an extra 9% bonus in place of the EsSalud contribution.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so the 25% and 35% overtime tiers reflect what was actually worked. Time & attendance →
Domiciled individuals pay income tax on labour income at progressive rates set in tax units (UIT). For 2026 one UIT is S/ 5,500. The first 7 UIT (S/ 38,500) of labour income are exempt, and up to 3 more UIT can be deducted for qualifying expenses. Employers withhold the tax monthly.
| Net taxable income | In soles (2026) | Rate |
|---|---|---|
| Up to 5 UIT | Up to S/ 27,500 | 8% |
| Over 5 up to 20 UIT | S/ 27,501 – S/ 110,000 | 14% |
| Over 20 up to 35 UIT | S/ 110,001 – S/ 192,500 | 17% |
| Over 35 up to 45 UIT | S/ 192,501 – S/ 247,500 | 20% |
| Over 45 UIT | Over S/ 247,500 | 30% |
The only employer social security contribution is health insurance. Pension contributions are paid by the employee and withheld by the employer. The statutory bonuses and CTS add significantly to the annual cost.
Paid by the employer on each employee’s pay. 6% for agricultural companies from 2024 to 2028.
Withheld from pay: 13% for the public system (ONP), or about 12.4% for a private fund (AFP), including insurance and fees.
Roughly one month’s pay a year, deposited in two halves in May and November into an account the employee chooses.
Build Peruvian pay the way you already structure it, with your own salary components, deductions and formula columns, such as EsSalud, AFP or ONP and gratificación columns. Want to know how well IceHrm handles payroll calculations for Peru? Contact us or see Payroll →
After probation, an employer can only dismiss for a just cause related to the employee’s conduct or capacity, following a written procedure. A dismissal without a valid cause is arbitrary and entitles the employee to statutory compensation.
| Situation | Period |
|---|---|
| Resignation by the employee | 30 days’ notice |
| Dismissal for misconduct: time to respond to the written charges | At least 6 days |
| Dismissal for capacity: time to respond or show improvement | Up to 30 days |
| Contract type | Compensation |
|---|---|
| Indefinite contract | 1.5 monthly salaries per year of service, up to 12 salaries |
| Fixed-term contract | 1.5 monthly salaries per month remaining, up to 12 salaries |
Final pay includes pending wages, accrued and untaken annual leave, the pro rata gratificación and any CTS not yet deposited. It must be paid within 48 hours of the end of employment.
Peru has 16 national public holidays. The government also declares occasional non-working days, which in the private sector only apply by agreement with the employer.
Employees who work on a public holiday without a substitute rest day are paid an additional 100% on top of their normal pay for that day.
Leave groups give each office its own holiday calendar, so you can add regional holidays or a declared non-working day once and every employee in that office sees it automatically. Holiday calendars →
Indefinite contracts can be verbal, but fixed-term (modal) and part-time contracts must be in writing, state the objective reason for the fixed term, and be filed with the labour authority.
The standard probation period is 3 months. It can be extended by written agreement to up to 6 months for qualified or trusted staff and up to 1 year for management positions. Fixed-term contracts must be linked to a reason allowed by law, and successive fixed-term contracts with the same employer are limited to 5 years in total.
Send contracts for e-signing, store them on the employee’s record, and track onboarding with task lists so day-one registrations and probation reviews are not missed. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Peru, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Peru? Talk to us.
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