Peru (PE)
Peru combines world-class food, ancient Inca heritage, Pacific coastline, Amazon rainforest, Andean cities and one of Latin America's lower cost-of-living profiles.
Employment Rights
Sick leave, dismissal protection and red flags in Peru.
Peru employment law is governed by the Ley de Productividad y Competitividad Laboral (LPCL — DL 728/1997) and its reglamentos. Employees in the general private regime receive significant statutory benefits: planilla registration, minimum wage (RMV S/1,130/month from January 2025, confirmed unchanged for 2026), 30 calendar days annual leave, two annual gratificaciones (July and December, each 1 month's salary), CTS (Compensación por Tiempo de Servicios — a severance savings account), EsSalud health insurance (employer 9%), and mandatory pension affiliation (either AFP private 10% or ONP public 13%). Foreign workers require a work permit (autorización de trabajo) linked to their visa category (Non-Immigrant Worker or Immigrant Worker). SUNAFIL (Superintendencia Nacional de Fiscalización Laboral — sunafil.gob.pe) is the labour inspectorate. Labour disputes are handled by Juzgados de Trabajo (Labour Courts).
Sick leave
Rules: EsSalud pays a sickness subsidy (subsidio por enfermedad) from day 21 of continuous illness (employer covers days 1–20). Employee must have a minimum of 3 consecutive months of EsSalud contributions prior to the illness, or 4 non-consecutive months in the preceding 12 months. Medical certificate (certificado médico de incapacidad temporal) from an EsSalud-authorised clinic is required. Subsidy duration: up to 11.5 months per illness episode, renewable for serious illness. Employer is not legally required to pay more than 20 days out of pocket unless the employment contract specifies better terms.
Doctor note: Notify employer on day 1 of absence. For the first 20 days: employer policy governs certificate requirements (typically certificate from day 3 for shorter absences). From day 21: an official EsSalud incapacity certificate (certificado de incapacidad temporal para el trabajo — CITT) is required to claim the EsSalud subsidy.
Employer pay: Days 1–20: employer pays full regular salary from its own funds. From day 21: EsSalud pays approximately 100% of the daily rate (up to a ceiling of the EsSalud daily cap) for up to 11.5 months per illness. Employer is not required to top up the EsSalud payment unless contractually agreed. Work accident or occupational illness: SCTR (Seguro Complementario de Trabajo de Riesgo) insurance covers treatment and income replacement at 100% from day 1 for qualifying hazardous-sector employers.
Long-term: After 11.5 months on EsSalud sickness benefit: if still incapacitated, disability pension assessment may be triggered through the AFP or ONP system. Disability pension: variable percentage of reference salary based on contribution history. Foreign employees with EsSalud contributions have the same entitlement as Peruvian nationals.
Dismissal protection
Law: LPCL DL 728: arbitrary dismissal (despido arbitrario) — dismissal without lawful cause — entitles the employee to indemnización of 1.5 months' ordinary remuneración per year of service, up to 12 months' salary total. Unjustified dismissal (despido injustificado): employee can choose indemnización OR reinstatement via amparo (Constitutional Court route — slower). Just cause for dismissal: serious misconduct (causas justas — Art. 24 LPCL: theft, violence, willful damage, falsification, 3-day abandonment, habitual tardiness after warnings). Protected categories: pregnant workers (from notification until 90 days post-birth); trade union officers.
Deadline to sue: Indemnización (compensation) claim: within 30 working days (días hábiles) of dismissal at the Juzgado de Trabajo. SUNAFIL complaint (inspección): any time. Reintegration/amparo (Constitutional route): within 30 calendar days. Wages and benefits claims: up to 4 years statute of limitations under the procedural labour law. Act promptly — the 30-day deadline for indemnización is short and strictly enforced.
Probation
Trial period (período de prueba): 3 months standard under LPCL Art. 10. Extended to 6 months for trusted employees (personal de confianza) and 1 year for management positions. During probation, employer may dismiss without payment of indemnización por despido arbitrario, but must pay all accrued benefits (proportional gratificación, CTS deposit, vacation). All mandatory benefits and EsSalud/pension contributions apply from day 1 of employment, including during probation. After probation, dismissal without just cause triggers indemnización: 1.5 months' salary per year of service (or proportional part), capped at 12 months.
Notice periods
LPCL does not require a notice period from the employer for dismissal — the remedy is indemnización (pay in lieu). Employee resignation: 30-day notice recommended (no legal minimum for employees, but some contracts specify). Fixed-term contracts (contratos sujetos a modalidad): end automatically on the agreed date; employer must not use them for permanent activities that are of unlimited duration. For redundancy (cese colectivo): special administrative procedure with MTPE approval required.
Working time
Max hours: 8 hours per day or 48 hours per week maximum under the Constitution and DL 854. Night work (22:00–06:00): maximum 8 hours; entitled to a 35% premium above the minimum wage. Overtime: any hours beyond 8/day or 48/week. No weekly cap on overtime, but habitual excessive overtime is a SUNAFIL violation. Cumulative hours systems (mixtos) permitted by agreement.
Min rest: Minimum 45-minute meal break per working day (not counted as working time). 1 rest day per week (Sunday is default; other days by agreement). Mandatory 24 rest hours after night shift. National public holidays: 14 in 2026 — all paid. Working on public holidays entitles the employee to triple pay (200% premium + regular day = 3× normal rate).
Overtime: Overtime pay: first 2 overtime hours per day or per week: 125% premium above hourly rate; from hour 3: 135% premium. Overtime must be voluntary and agreed in writing. Employer cannot habitually require overtime without SUNAFIL authorisation for systematic overtime. Record all hours worked — SUNAFIL inspections check timesheets.
Vacation
30 calendar days paid annual vacation per year after 12 months of service (DL 713). Leave accrues at 2.5 days per month. Vacation period must be agreed between employer and employee. The employer may defer up to 15 days by agreement; the remaining 15 days must be taken. Unused vacation at termination must be paid at 1/30 of monthly salary per unused day. Vacation truncada (proportional vacation on termination): paid out for months worked in the year of termination.
Anti-discrimination
The Political Constitution of Peru (Art. 2, 26), LPCL, and Law 29973 (on persons with disabilities) prohibit employment discrimination on grounds of race, sex, religion, national origin, age, disability, sexual orientation, language, political opinion, and economic status. Equal pay for equal work is mandated. SUNAFIL investigates workplace discrimination (sunafil.gob.pe). Sexual harassment is addressed under Law 27942 and its 2018 amendment — file with the employer HR first, then SUNAFIL, then the Juzgado Penal. Protected workers: pregnant employees entitled to pre/post-natal leave; trade union leaders have special dismissal protection.
Contract red flags
- !Employer refuses planilla (payroll registration) but controls your schedule, tools, and work location like an employee — false self-employment (tercerización ilegal); SUNAFIL can reclassify as employment
- !Salary below S/1,130/month RMV (Remuneración Mínima Vital — confirmed unchanged for 2026 per DS 006-2024-TR)
- !No written contract or only English text for a Spanish-language legal relationship — Peruvian labour law requires a written contract for fixed-term arrangements
- !Employer claims foreign workers are not entitled to CTS, gratificaciones, or EsSalud — false; all statutory benefits apply equally to foreign workers in the general regime
- !You must pay your own work permit fees or "fixer" costs from your salary — work permit costs are the employer's responsibility
- !Employer retains your passport or immigration documents — illegal
- !No EsSalud registration or AFP/ONP pension affiliation from day 1 — mandatory for all formal employees
- !Service contract (locación de servicios — RUC/recibo por honorarios) used for a full-time subordinate role — denies you all LPCL statutory benefits
- !30-day indemnización claim deadline not mentioned — you have only 30 working days to file at the Juzgado de Trabajo; act immediately on dismissal
- !Fixed-term contract (contrato sujeto a modalidad) used for a permanent, core activity of the company — after 5 years of consecutive fixed-term renewals, the relationship is presumed indefinite under LPCL
- !CTS not deposited semi-annually (May and November) — employer must deposit CTS at an employee-chosen bank; verify your CTS balance semi-annually
- !No gratificación payment in July and December — each gratificación equals 1 month's ordinary salary; non-payment is a SUNAFIL violation
Employment Rights
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