Employer of Record (EOR) in Peru: Complete 2026 Guide
Guide to using an EOR in Peru — costs, Peruvian labor law compliance, top providers, and comparison with setting up a local entity.
Peru is one of Latin America's most stable economies, with GDP growth of 2.5-2.7% forecast for 2026. Rich in natural resources and with a growing services sector, it offers competitive labor costs and a strategic location for serving Latin American markets.
Peru's labor law mandates gratificaciones (13th and 14th month salaries), CTS severance fund deposits, EsSalud health contributions (9%), and 30 days of mandatory vacation. An Employer of Record (EOR) handles these requirements.
Why Use an EOR in Peru?
Gratificaciones (13th and 14th month salary). Employers must pay two extra monthly salaries per year — in July and December — plus a 9% extraordinary bonus on each. This adds approximately 18-20% to annual salary costs.
CTS (severance fund). Employers must deposit the equivalent of approximately one month's salary per year into a bank-held severance fund, paid in two installments (May and November).
EsSalud health insurance. Employers pay 9% of monthly remuneration for public health insurance — a significant cost with no employee contribution.
30 days mandatory vacation. Peru mandates 30 calendar days of paid leave after one year — among the most generous in Latin America.
Important
For a detailed breakdown of Peruvian labor laws including minimum wages, EsSalud, CTS, gratificaciones, and leave policies, see our Peru Labor Law Compliance Guide.
Key Employment Regulations
| Regulation | Details |
|---|---|
| Minimum wage | PEN 1,130/month |
| Standard hours | 48 hours/week |
| Overtime | 125% first 2 hours, 135% thereafter |
| Night shift | 135% (10 PM - 6 AM) |
| Annual leave | 30 calendar days |
| Gratificaciones | 2 extra monthly salaries (July + December) + 9% bonus |
| CTS (severance fund) | ~1 month's salary/year (deposited May + November) |
| Maternity leave | 98 days |
| Paternity leave | 10 days |
| Public holidays | 16 per year |
| EsSalud (employer) | 9% of monthly salary |
| Notice period | 30 days |
EOR Costs in Peru
Most EOR providers charge $400 to $600 per employee per month. Total employer costs add approximately 35-40% on top of salary when including EsSalud (9%), gratificaciones (~18%), and CTS (~9.72%).
Top EOR Providers for Peru
| Provider | Owned Entity | Starting Price | Strengths |
|---|---|---|---|
| Deel | Yes | $599/mo | Strong LatAm presence |
| Remote | Yes | $599/mo | All owned entities |
| Velocity Global | Yes | Custom | Deep LatAm expertise |
| Oyster HR | Partner | $599/mo | Good employee experience |
For a full comparison, see our Best Employer of Record Companies guide.
Managing a Team in Peru?
Track time, monitor productivity, and manage schedules across time zones with HiveDesk. Works with any EOR setup — $5/user/month, all features included.