Peru Labor Law and Employment Policy Overview

Employment Law Overview

• Key Laws and Regulations:
  • Peruvian Constitution
  • Labor Law (Law No. 27404)
  • Social Security Law (Law No. 30037)
• Legal Characteristics:
  • Protects workers' rights, including freedom of association, collective bargaining, and the right to strike.
  • Sets minimum wages, working hours, and paid time off.
  • Establishes a social security system providing healthcare, pensions, and unemployment benefits.

Employment Contract Requirements

• Contract Types:
  • Indefinite-term contracts
  • Fixed-term contracts (not exceeding five years)
• Contractual Terms:
  • Must include job description, compensation, working hours, benefits, and termination conditions.
  • Must be written in Spanish and use the Peruvian Sol as currency.
• Language and Currency:
  • Spanish
  • Peruvian Sol (PEN)

Working Time Regulations

• Standard Working Hours: 48 hours per week, 8 hours per day.
• Rest Days and Breaks: At least 24 hours of rest per week, and at least 1 hour of rest per day.

Leave Policies

• Annual Leave: 30 days of paid annual leave per year.
• Public Holidays: 10 national public holidays.
• Special Leaves:
  • Sick Leave: 365 days of paid sick leave per year.
  • Maternity Leave: 98 days of paid maternity leave (49 days prenatal, 49 days postnatal).
  • Paternity Leave: 10 days of paid paternity leave.

Employee Severance and Contract Termination

• Notice Period:
  • Employer: 6 to 30 days, depending on reason for termination.
  • Employee: 30 days.
• Severance Pay:
  • Unfair Dismissal: 1.5 months' salary per year of service, up to a maximum of 12 months' salary.
• Unfair Dismissal Protection:
  • Employers must have just cause to dismiss an employee.

Tax Laws

• Personal Income Tax:

  • Salary Range (PEN)	Tax Rate
    0 - 30,000	0%
    30,000 - 45,000	10%
    45,000 - 60,000	15%
    60,000 - 75,000	20%
    75,000 and above	30%

• Social Security Contributions:

  • Employer: 19.72%
  • Employee: 13%

Health Insurance

• Insurance Policy:
  • National Health Insurance System (EsSalud)
• Coverage:
  • Basic healthcare services

Compensation and Benefits

• Minimum Wage: PEN 1025 per month
• Compensation Structure:
  • Monthly salary
  • Bonuses (paid in July and December)
  • Legal bonuses
  • Family allowance for employees with children

Work Permits and Visas

• Permit Requirements:
  • Foreigners require a work permit or visa.
• Application Process:
  • Contact the Peruvian Immigration Office.

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Enforceable, but must be reasonable and not unduly restrict an employee's employment opportunities.
• Common Provisions:
  • Confidentiality of information
  • Non-competition restrictions

Training and Development

• Legal Requirements:
  • Safety training
  • Skills development
• Government Support:
  • Government-funded training programs

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibition of discrimination
• Enforcement Measures:
  • Government agencies responsible for enforcing the law

Remote Work Policies

• Legal Framework:
  • No specific legal framework.
• Tax and Insurance Implications:
  • Remote work may impact taxation and social security.

Authoritative Website Addresses

• Peruvian Ministry of Labor: https://www.gob.pe/mtpe