Employer of record services in Peru

Yes. We manage EsSalud health contributions (9% of salary from the employer), pension contributions to either the public (ONP) or private (AFP) system depending on employee choice, and two mandatory statutory bonuses (gratificaciones), each equal to one month’s salary, paid in July and December. We also manage CTS, a severance-style benefit paid twice yearly into a dedicated employee account.

Beyond the mandatory gratificaciones and CTS, competitive Peruvian employers add private health insurance (EPS) that supplements EsSalud, meal vouchers, and life insurance, which is mandatory for employees after four years of service under Peruvian law but often provided earlier by competitive employers.

Peru does not require a fixed statutory notice period for most terminations, but unjustified dismissal triggers a compensation obligation calculated per year of service, and Peruvian labor law requires documented cause for lawful termination, with specific procedural steps depending on the grounds cited. Peru’s dual mandatory bonus (gratificaciones) and severance (CTS) system make exit calculations more involved than in many markets.

An EOR can typically onboard within one to two weeks for EsSalud and pension registration, compared with the several weeks needed to incorporate a Peruvian entity and register with SUNAT (the tax authority) and social security bodies.

Peru’s twice-yearly mandatory bonus structure and its CTS severance fund system require ongoing local administration that’s easy to miscalculate. An EOR takes on that compliance and the associated liability, which is typically the practical route for accessing Peru’s growing outsourcing and mining-adjacent professional talent pool.