Our Employer of Record (EoR) / International PEO solutions enable staffing organisations and foreign businesses to expand into Peru and hire employees without the need to establish a new corporate entity. 

We take care of the entire employment relationship including managing all social security costs, social benefits and statutory rights afforded to the employee. The best part is that our EoR solutions are completely managed by the Capital GES team, allowing you to concentrate on international expansion. 

Interested in doing business in Peru? Here are the top five things you need to know: 

1. Social security
Social security contributions include:

- Health Care
- Pension Fund
- Old Age Pension

The total employer social contribution totals approximately 10%. The total employee social contribution totals approximately 13%.

2. Employment contract details
There are no specific rules governing the language for employment contracts. The employee must understand the contract language.

Contracts must be in writing.

3. Fixed-term contract extensions
The nature of the work must justify the fixed-term contract, according to labour legislation. There are three types of fixed-term contracts: for temporary reasons, for incidental reasons and for a specific piece of work or service. Renewals are allowed within the maximum duration specified above for each type of contract. A combination of different contracts subject to special conditions is possible provided, however, that the total cumulative duration does not exceed 5 years.

4. Termination costs
- Severance pay: upon termination, an amount equal to one month’s average salary per year of employment is paid to a state fund; the employee can withdraw his severance pay from this fund without deductions of taxes or levies.

- Untaken leave: employee must receive any untaken holiday they have accrued during their employment along with any owed holiday bonus. The calculation may change depending on the length of service of the worker.

5. Probation periods
The probationary period cannot exceed 3 months for regular employees, and 6 months or 1 year for managerial positions or specific types of employees that deal with confidential information. Employees may be dismissed without any justification or further formality during probation.

If you are looking to expand your workforce in Peru (or any other of the 30 countries we operate in) without the burden of registering an entity and incurring significant expense and administration then please get in touch with Nick Broughton at Capital GES on +44 7539 337 563 or email Nick.Broughton@Capital-GES.com

Capital GES provides market-leading employment services to staffing companies, corporate clients and independent contractors in all sectors across Europe, Latin America and southern Africa. With headquarters in Switzerland and offices in USA, Brazil and UK, Capital GES provides services including Employer of Record, Contractor Payroll, Invoice & Pay and IC Compliance Checking.

For more detailed information on employment matters in Peru, including statutory benefits, employment regulations and contract requirements, download our free guide today or contact our team for a free consultation. ​​