Peru
Capital: Lima
Currency: - PEN
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
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Personal Income Tax:
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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%
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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