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Labor Laws in Peru

An attractive investment target for foreign businesses, thanks to its macroeconomic stability and economic performance.
Labor laws in Peru

Key Labor Laws in Peru

  • The Ministry of Labor and Job Promotion (Ministerio de Trabajo y Promoción del Empleo, MTPE)
  • The National Superintendence of Labor Inspections (Superintendencia Nacional de Fiscalización Laboral, SUNAFIL)

General Employment Regulations

Labor Benefits and Obligations

  • Vacations: Right to take thirty days of paid vacation ―equivalent to a monthly wage― per each full year effectively worked. Employees can negotiate in advance their vacations through a written agreement, even though the year of service is not completed yet.
  • Family Allowance: Workers can apply for this benefit if they have one (or more) dependent child under 18 years old or if they have older children enrolled in university (until 24 years old).
  • Legal Bonuses: Every year, employees must receive two statutory bonuses equal to one monthly salary; the first is granted in July for the Independence Day holidays, and the second is paid in December for the Christmas holidays.
  • Extraordinary Bonuses: Employers must pay, at the same time, as the legal bonuses, two extra compensations equal to 9 percent of statutory bonuses, or 6.75 percent for workers affiliated to a Healthcare Service Provider Company (EPS).
  • Severance Pay (Compensación por Tiempo de Servicios): An employment insurance that represents approximately one and a half of the monthly salary (1.16666%) per year, granted in May and November.
  • Profit-Sharing: Businesses with more than twenty workers must distribute a percentage of their annual income (set by law).


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