Employment Laws in Peru: A Comprehensive Guide for 2026

What are the rules for contractual agreements in Peru?

Employment relationships in Peru’s private sector are primarily governed by:

• The Constitution of Peru
• The Law on Labor Productivity and Competitiveness
• The New Labor Procedure Law
• The Collective Labor Relations Law
• The Working Day, Working Hours, and Overtime Law
• The Occupational Safety and Health Law and its implementing regulations
• Other applicable employment laws and regulations

As explained by the Ministry of Labor and Employment Promotion, indefinite-term employment contracts may be concluded orally or in writing, while contracts subject to modality must be in writing and executed in triplicate. Contracts subject to modality must expressly state their duration, the objective cause justifying the temporary arrangement, and the other applicable conditions of the employment relationship, as outlined in the Ministry of Labor’s guidance on contracts subject to modality.

Employers are no longer required to submit contracts subject to modality to the Labor Administrative Authority within 15 days because the former registration requirement was removed by Legislative Decree No. 1246.

Types of employment contracts in Peru

Under the Ministry of Labor’s guidance on employment contracts, Peruvian private-sector employment contracts may be structured as:

Indefinite-term contracts

Indefinite-term employment contracts do not have a predetermined end date and may be concluded orally or in writing, according to the Ministry of Labor and Employment Promotion.

Contracts subject to modality

Contracts subject to modality are fixed-term arrangements that must be supported by an objective cause recognized by law. They must be executed in writing and specify their duration, the objective reason for using the contract, and the other conditions of the employment relationship.

The official Ministry of Labor guidance on contracts subject to modality groups these contracts into three principal categories:

• Temporary contracts
• Accidental contracts
• Contracts for work or service

Temporary contracts

Temporary contracts may be used for legally recognized temporary business needs. This category includes:

• Contracts for the start or increase of business activity
• Contracts for temporary market needs
• Contracts for business conversion

Accidental contracts

Accidental contracts address temporary circumstances that are incidental to the employer’s regular operations. This category includes:

• Occasional contracts
• Substitution contracts
• Emergency contracts

An occasional contract may be used to address temporary needs outside the employer’s usual business activities and may last for a maximum of six months within a one-year period.

An emergency contract may be used to address needs caused by force majeure or an unforeseen event and remains valid only for the duration of the emergency.

Contracts for work or service

The work-or-service category includes the following separate contractual arrangements:

• Contracts for a specific work or service
• Intermittent contracts
• Seasonal contracts

A contract for a specific work or service is entered into for a previously defined objective and lasts for the time necessary to complete the specified work or service.

Obligations and rights for both parties

Employers and employees must follow all the guidelines mentioned in the labor laws of Peru. This includes regulations related to working conditions, overtime compensation, and anti-discrimination prohibitions, among others.

What are the working hours and overtime rules in Peru?

Working hours and overtime in Peru’s private sector are primarily governed by the Law on Working Hours, Schedules, and Overtime, whose consolidated text was approved by Supreme Decree No. 007-2002-TR.

Regular working hours in Peru

The maximum ordinary working time for adult employees is eight hours per day or 48 hours per week. Employers may establish shorter working hours through applicable law, an individual or collective agreement, or a unilateral employer decision, as explained in SUNAT’s official working-time guidance.

Overtime regulations and compensation in Peru

Overtime is generally voluntary and must be paid using the statutory minimum premiums established under Peru’s official overtime rules.

The statutory minimum overtime premiums under Peru’s overtime-payment rules are:

• At least 25% above the employee’s ordinary hourly rate for each of the first two overtime hours
• At least 35% above the employee’s ordinary hourly rate for each additional overtime hour

The maximum-working-time rules do not apply to management employees, employees who are not subject to immediate supervision, or employees who perform intermittent waiting, security, or custodial services; employees are not automatically excluded merely because they hold a supervisory position or work on call.

What are the minimum wage and compensation rules in Peru?

The National Council for Labor and Employment Promotion provides a tripartite forum in which the government, worker representatives, and employer representatives discuss proposed minimum-wage adjustments; however, the Executive establishes the applicable rate through a supreme decree.

The minimum wage rate in Peru

Under Supreme Decree No. 006-2024-TR, the minimum wage for employees covered by Peru’s private-sector labor regime is PEN 1,130 per month, effective January 1, 2025.

Factors affecting wage determination in Peru

When reviewing the national minimum wage, the Executive may consider broader labor, social, and economic conditions. According to the Peruvian government’s explanation of the latest minimum-wage adjustment, relevant considerations may include:

• Technical analysis of prevailing labor and economic conditions
• The well-being of workers and their families
• The potential effect on formal employment and labor informality
• The potential impact on micro and small enterprises
• Productivity and wage recommendations discussed through the tripartite consultation process

An individual employer’s financial capacity does not change the nationally applicable statutory minimum wage.

What are the employee benefits and social security requirements in Peru?

Let’s look at some of the crucial aspects of employee benefits and social security programs in Peru.

Statutory benefits

Statutory bonuses

Employees covered by Peru’s general private-sector labor regime are generally entitled to two mandatory statutory bonuses, one for Independence Day and one for Christmas; different rules may apply under special labor regimes.

The statutory bonuses must generally be paid during the first half of July and December. Each bonus equals one month’s remuneration when the employee has worked the entire qualifying semester; otherwise, it is generally calculated in proportion to the complete months worked.

Public health insurance

Peru’s public health insurance systems include the Comprehensive Health Insurance program, known as SIS, EsSalud, the Armed Forces health insurance systems, and the National Police health insurance system; SIS and EsSalud are the two most widely used.

Retirement pensions

Employees may be affiliated with Peru’s National Pension System or Private Pension System.

Under the National Pension System:

• Individuals who are at least 65 years old and have at least 20 years of accredited contributions may qualify for a general retirement pension.
• Individuals who are at least 65 years old and have between 10 and 19 years of contributions may qualify for a proportional pension.
• The current general maximum retirement pension is PEN 1,000 per month, while the minimum is PEN 600 for pensioners with at least 20 years of contributions. A 4% EsSalud contribution is deducted from the pension.
• Individuals may apply for early retirement from age 55 when they have at least 25 years of accredited contributions and have ceased employment.

Private Pension System retirement and early-retirement requirements are governed by separate rules and may depend on factors such as the employee’s individual pension-account balance and contribution record.

Survivor pensions

The National Pension System provides survivor benefits that may include a widow’s or widower’s pension, an orphan’s pension, and an ascendant’s pension for eligible parents, subject to the applicable eligibility requirements.

Survivor-pension amounts under the National Pension System depend on the beneficiary category and applicable pension rules; for example, an eligible spouse or registered partner generally receives 50% of the deceased member’s monthly pension. The PEN 893 figure is outdated and should not be presented as a current universal cap, as the current maximum general SNP retirement pension is PEN 1,000.

Sickness and maternity benefits

For regular dependent employees, the employer continues paying remuneration for the first 20 days of incapacity accumulated during the calendar year, and the EsSalud temporary-incapacity subsidy generally begins on day 21. Under the applicable economic-benefit regulations, the daily subsidy for regular dependent employees is generally based on their average remuneration during the 12 calendar months preceding the month in which the incapacity begins.

Eligible insured employees may receive the EsSalud maternity subsidy for 98 days. For regular dependent employees, the subsidy is generally calculated using their average daily remuneration during the 12 calendar months preceding the month in which maternity leave begins.

In cases of multiple births or the birth of a child with a disability, the maternity benefit may be extended for up to an additional 30 days.

Occupational injury and disability benefits

Employees performing qualifying high-risk activities may be covered by the Supplementary Occupational Risk Insurance scheme, known as SCTR.

Its permanent-disability benefits include:

• For disability greater than 20% but below 50%: a one-time indemnity equal to 70% of 24 average monthly remunerations
• For disability of at least 50% but below 66.7%: a lifetime pension equal to 50% of average remuneration
• For disability of at least 66.7%: a lifetime pension equal to 70% of average remuneration
• For 100% disability requiring another person’s assistance with essential activities: a lifetime pension equal to 100% of average remuneration

SCTR may also provide survivor pensions and reimburse qualifying funeral expenses when an insured employee dies because of an occupational accident or disease.

Additional social security benefits

Other benefits may include:

• Lactation subsidy: EsSalud provides an eligible mother with a one-time payment of PEN 820 for each live-born child. Eligibility and contribution requirements apply.
• EsSalud funeral benefit: EsSalud reimburses qualifying funeral expenses following the death of an eligible active or retired regular insured person, up to PEN 2,070.
• ONP death capital: This one-time National Pension System payment may be available when the deceased leaves no eligible survivor-pension beneficiaries. It is calculated as six reference remunerations, subject to the applicable statutory maximum-pension limit.

Social security and pension contributions

Employers generally contribute 9% of an active employee’s remuneration to EsSalud, and the monthly insurable base cannot be lower than the applicable minimum wage, according to SUNAT’s EsSalud contribution guidance.

Dependent employees are generally enrolled in EsSalud through their employer. An employer may also arrange an EPS health plan, which complements EsSalud coverage rather than completely replacing it.

When an EPS plan applies, 25% of the employer’s 9% EsSalud contribution may be allocated to the EPS, equivalent to 2.25% of remuneration, while the remaining 6.75% continues to fund EsSalud, as explained in the Peruvian Judiciary’s official EPS guidance.

Employers must deduct a portion of the employee’s compensation for monthly pension fund contributions.

The deduction amounts to 13% for employees affiliated with the National Pension System.

There is no single fixed 12.5% deduction for every member of the Private Pension System. According to the Superintendency of Banking, Insurance, and Private Pension Fund Administrators, the deduction consists of a mandatory 10% pension-account contribution plus the applicable insurance premium and AFP administration commission.

Under the Private Pension System contribution rules, 10% of the employee’s remuneration is credited to their individual capitalization account, while the applicable disability and survivor-insurance premium and AFP administration commission are charged separately and may vary.

What are the vacation and paid time-off rules in Peru?

Peruvian labor law provides eligible employees with annual leave, public holidays, sick leave, maternity leave, and paternity leave. Eligibility and payment conditions may vary depending on the employee’s labor regime, working schedule, contribution record, and other statutory requirements.

Annual leave entitlement

Under Peru’s annual leave rules, employees covered by the general private-sector labor regime who work at least four hours per day and meet the applicable service and attendance requirements are entitled to 30 calendar days of paid annual leave after each complete year of service.

Annual leave is generally taken as one continuous period. However, at the employee’s written request and by written agreement with the employer:

• Fifteen calendar days may be divided into one uninterrupted period of seven days and another uninterrupted period of eight days.
• The remaining 15 calendar days may be divided into shorter periods, provided each period lasts at least one calendar day

These arrangements are governed by Peru’s vacation-fragmentation rules.

Public holidays

Peru currently has 16 national public holidays, as listed in the government’s official public holiday calendar:

• New Year’s Day
• Holy Thursday
• Good Friday
• Labor Day
• Battle of Arica and Flag Day
• Saint Peter and Saint Paul’s Day
• Peruvian Air Force Day
• Independence Day
• Second day of Independence Day celebrations
• Battle of Junín
• Santa Rosa de Lima
• Battle of Angamos
• All Saints’ Day
• Immaculate Conception
• Battle of Ayacucho
• Christmas Day

Employees who work on a public holiday without receiving substitute time off are generally entitled to the applicable statutory holiday compensation.

Sick leave

Peruvian law does not provide a universal entitlement to 365 days of employer-paid sick leave.

The employer must continue paying the employee’s remuneration during the first 20 days of incapacity accumulated within a calendar year. From the 21st day, the EsSalud temporary-incapacity subsidy may apply, subject to the employee satisfying the relevant insurance, contribution, and medical-certification requirements.

The EsSalud subsidy may generally continue for up to 11 months and 10 consecutive days. The official rules do not establish a general 245-day limit or a standard payment rate of 70% to 80%.

Maternity leave

Pregnant employees are entitled to 98 calendar days of maternity leave. The leave is normally divided into:

• 49 days before the expected date of birth
• 49 days after delivery

With medical authorization, an employee may defer some or all of the prenatal leave and add it to the postnatal period, as explained in the government’s maternity leave guidance.

The maternity leave period may be extended by an additional 30 calendar days in cases involving:

• Multiple births
• The birth of a child with a disability

Payment through the EsSalud maternity subsidy is subject to the applicable insurance and contribution requirements.

Paternity leave

Eligible fathers working in Peru’s public or private sectors are entitled to paid paternity leave under the official paternity leave rules.

The entitlement is:

• 10 consecutive calendar days for a natural or cesarean birth
• 20 consecutive calendar days for premature or multiple births
• 30 consecutive calendar days when the child has a terminal congenital illness or severe disability
• 30 consecutive calendar days when the mother experiences serious health complications resulting from childbirth

What are the termination and severance rules in Peru?

Termination requirements in Peru vary according to the reason for ending employment, the employee’s contract type, and whether the termination is individual or collective. Under Peru’s Law on Labor Productivity and Competitiveness, an employer dismissing an employee who has completed the applicable probation period must generally establish and prove a legally recognized cause related to the employee’s capacity or conduct.

Collective termination may be permitted only for specified objective reasons and must follow the applicable statutory procedure.

Grounds for termination in Peru

In Peru, an employer may terminate an employment contract after the probation period only for legally recognized and proven grounds, including employee capacity issues, serious misconduct, and certain objective business reasons, as established under the Labor Productivity and Competitiveness Law (Supreme Decree No. 003-97-TR).

During the statutory probation period, employers generally do not need to prove a cause for dismissal because employees have not yet obtained protection against arbitrary dismissal. The statutory probation period is generally three months unless extended under legally permitted circumstances, according to the Labor Productivity and Competitiveness Law (Supreme Decree No. 003-97-TR)

Termination due to employee capacity issues

• Deficient performance compared with the employee’s capacity and the performance of other employees in similar roles may constitute a valid termination ground, subject to the procedure established under Peruvian labor law.
• Unjustified absences or abandonment of work may constitute serious misconduct. However, illness alone is not an automatic termination under Peruvian labor law.

Termination for employee conduct-related causes

• Serious misconduct, including certain alcohol or drug-related conduct affecting workplace duties, may justify termination when it meets the legal requirements for serious misconduct.
• Acts of dishonesty may qualify as serious misconduct when they breach the employee’s obligations under the employment relationship.
• Serious misconduct (“falta grave”) is a recognized ground for dismissal under Peruvian labor law.
• Severe negligence may qualify as serious misconduct depending on the circumstances of the case.
• Breaching established regulations set forth by the employer
• Failure to obey lawful instructions
• Conviction for an intentional criminal offense (“delito doloso”) may constitute a dismissal ground under Peruvian labor law.
• Acquired physical or mental incapacity that affects the employee’s ability to perform their duties may constitute a termination ground, subject to applicable legal requirements.

Termination due to objective business reasons

Employers may carry out collective terminations for certain objective reasons, such as business restructuring, closure of operations, or other legally recognized economic or structural causes, subject to the procedures established under Peruvian labor law.

Notice period and severance pay in Peru

During the statutory probation period (generally three months), an employer may terminate the employment relationship without cause, and no statutory dismissal notice period applies.

Upon completing the probation period, the notice period varies from six to 30 days, contingent upon the grounds for dismissal.

If an employee decides to resign, they must give the employer a minimum of 30 days' notice.

In cases of arbitrary dismissal, severance pay is calculated at 1.5 monthly salaries per full year of service, capped at a maximum of 12 monthly wages.

Employees also receive special compensation (Compensación por Tiempo de Servicio) upon termination, regardless of the reason or cause. It equates to one monthly average salary per year of service.

Handling employee termination in Peru requires careful attention to dismissal grounds, notice requirements, and severance calculations. Errors in documentation or offboarding steps can create employment risks and additional administrative work.

Skuad Shield helps businesses manage employment compliance requirements with tools that support risk management throughout the employee lifecycle.

Skuad Shield supports:

• Employment documentation workflows aligned with applicable labour requirements
• Worker classification checks to help flag potential employment risks
• Employment records management to support audit readiness
• Compliance monitoring across supported markets
• Support for termination and offboarding workflows, including notice and severance calculations as required locally

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What are the discrimination and equal opportunity rules in Peru?

The Constitution of Peru guarantees equality before the law and prohibits discrimination based on grounds including origin, race, sex, language, religion, opinion, economic status, and other distinguishing factors, as established in Article 2(2) of the Political Constitution of Peru

Employers must ensure compliance to ensure a safe and healthy workplace and avoid legal consequences.

Prohibitions against workplace discrimination

The Law Against Acts of Discrimination of 2000 specifically prohibits any requirements in job offers or access to educational training that may discriminate against individuals.

Peru’s Labor Productivity and Competitiveness Law (Supreme Decree No. 003-97-TR) prohibits discriminatory treatment in employment relationships. The broader constitutional framework also protects individuals against discrimination based on grounds including origin, race, sex, language, religion, and other legally recognized factors.

What are the health and safety regulations in Peru?

The Health and Safety Act at Work lays down the duties of employers and employees to ensure a healthy and safe environment at the workplace.

Stay compliant when hiring in Peru with Skuad

Hiring in Peru requires employers to coordinate written employment contracts, payroll deductions, statutory benefits, social security and pension contributions, and case-specific notice and severance obligations.

Skuad supports global teams hiring in Peru by assisting with employment contracts, payroll processing, statutory contribution workflows, benefits administration, and termination requirements through a single platform. This helps businesses manage local employment requirements while hiring without setting up their own entity.

Book a demo to learn how Skuad supports hiring in Peru.

FAQs

1. What is the probation period under Peru employment law?

Under Peruvian labor regulations, the standard probation period is three months. Extensions may apply for employees in positions involving higher responsibility, such as managers or specialized workers, subject to legal requirements.

2. What are the rules for hiring part-time employees in Peru?

Part-time employment in Peru is regulated differently from full-time work, with employees generally working fewer than four hours per day on average. Employers must provide written agreements and comply with registration requirements while ensuring workers receive applicable protections under Peruvian labor regulations governing part-time employment relationships.

3. What are the employer registration requirements in Peru?

Employers in Peru must register employees through the electronic payroll system known as T-Registro, which is managed through SUNAT. This registration records employment details, compensation information, and social security data, helping employers meet reporting obligations and maintain accurate employment records required under Peruvian labor administration rules.

4. What records must employers maintain for employees in Peru?

Employers in Peru must maintain employment records containing information about workers, payroll payments, contracts, attendance, and benefits. These records support compliance with obligations monitored by authorities such as SUNAFIL and may be reviewed during labor inspections to verify adherence to Peru’s employment regulations and worker protection requirements.

5. What are the rules for employee transfers and workplace changes in Peru?

Employers in Peru may make workplace changes or employee transfers when justified by business needs, provided they respect employee rights and contractual conditions. Employers must consider principles established under the Law of Productivity and Labor Competitiveness to ensure modifications do not unfairly affect workers.

6. What payroll deductions apply to employees in Peru?

Payroll deductions in Peru include mandatory contributions related to pension systems and other legally required obligations. Employees affiliated with the National Pension System contribute 13% of remuneration, while those under the Private Pension System have deductions covering their pension account, insurance, and fund management costs under Peruvian regulations.