How to hire remote employees in

Peru

Found some great remote talent you’d like to hire in Peru? It’s a good thing you’re here. On this page, you’ll learn exactly what you need to know before making hires in Peru: Legal obligations, risks, and the easiest path to hiring great talent overseas.

Country snapshot

CURRENCY
Peruvian Sol (PEN)
EMPLOYER TAXES
9%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Spanish

What to know before you hire in 

Peru

So you want to hire in Peru. That means you’ll have to make a decision: Do you want to hire your new remote talent as employees, or do you want to hire them as contractors? Conventional wisdom might say employees, but hiring abroad is hardly conventional—below, we’ll cover what you need to know about your options.

If you want to successfully hire in 

Peru

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Peru

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Peru

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Peru

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Peru

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Peru

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Peru

?

If you’re hiring contractors in 

Peru

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Peru

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Peru

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Peru than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Peru.

Taxes in 

Peru

Employer tax

Health Insurance

Individual tax

Leave

Paid Time Off (PTO)

PTO is calculated by the:

  • Employees are entitled to 30 days per year. A minimum of 15 days must be taken and the other 15 can be cashed out.

Public Holidays

There are 12 public holidays.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • The first 20 days are paid by the employer, the following days are paid by the state (ESSALUD).

Maternity Leave

Mothers are entitled to 98 days of fully paid leave paid by ESSALUD through the company.

Paternity Leave

10 days paid by the employer.

Parental Leave

Not required.

Other Leave

None.

Marriage Leave

None.

Bereavement Leave

None.

Termination

Termination Process

Employees may be terminated on objective grounds or for cause, with documentation. 

In general, employees should get a minimum of six calendar days of written notice so that the employee can respond in writing or 30 calendar days to prove his/her capability.

The dismissal decision and reason should also be provided in writing to the trade union and the employee. Employees which are dismissed without cause are generally entitled to severance pay for up to 12 months.

  • Temporary employment termination must be according to the expiration of the contract.
  • Permanent employment termination must either be voluntary resignation or dismissal for a justified cause.

Notice Period

When resigning employees must give at least 30 days’ notice.

Generally, an employer must provide an employee a minimum of six calendar days of notice so that the employee can present a written defense to any charges against him or her, or 30 calendar days to prove the employee’s performance capability or to correct any error. 

There is no need for notice if the employee has exhibited serious misconduct under which it would be unreasonable to require the employer to continue the employment relationship.

Severance Pay

  • Generally, severance is not required in cases of separation due to their conduct or capacity.
  • An employee terminated without cause is generally entitled to severance payments for a period of up to twelve months, depending upon the circumstances of the former worker’s employment history.
  • There is no specific redundancy pay required under Peruvian law.
  • If a court determines a dismissal to be unlawful because the employer has not provided a valid reason to the worker, or the reason cannot be legally substantiated, the employee usually will be entitled to a payment equal to the average monthly compensation for each year of service, up to a maximum of twelve months

Probation Period

The probationary period may last three months. 

When the work requires training and adaptation or when the nature of the work requires it, an extension may be granted. Such extensions must be done in writing and may not exceed:

  • six months in total for skilled workers and employees in positions of trust;
  • one year for managerial roles.

Employee requirements in 

Peru

Working Hours

Full-time employment is 8 hours per day and 48 hours per week.

Overtime

The compensation for overtime hours should be agreed upon by the employer and the employee.

However, the first 2 hours cannot be compensated with less than 25% of the total remuneration of the employee.

For every additional hour, the surcharge cannot be less than 35% per hour.

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