Peru has one of the most generous statutory leave packages in Latin America. Employers hiring there must budget for 30 calendar days of annual leave, two mandatory annual bonuses worth a full month’s salary each, a robust severance savings scheme, and strong protections for maternity and paternity. This guide covers every statutory obligation you need to know before bringing someone onto payroll in Peru.
If you’re managing a distributed team and want a simpler path to compliant hiring, an Employer of Record (EOR) handles every one of these obligations on your behalf.
Annual leave
Every employee in Peru is entitled to 30 calendar days of paid vacation per year, paid at the employee’s full monthly salary. That’s the starting point, and Peruvian law adds a number of rules around how that leave is structured and what happens when it goes unused.
Commission earners
Employees whose pay includes commission receive their base salary plus the average commission earned over the previous six months during their vacation period. Plan this into your payroll calculations before you approve leave for a sales-heavy team.
Flexibility in how leave is taken
By mutual agreement, you and your employee can structure the 30 days in one of two ways. The first 15 days can be taken as a single block or split into a minimum of 7 consecutive days plus a block of 8 consecutive days. The remaining 15 days can then be divided into shorter intervals, including single-day breaks, giving both parties useful scheduling flexibility.
Unused leave and carry-forward
If an employee hasn’t taken their leave, you can reach a mutual agreement to reduce the vacation period from 30 days to 15 days. In that case, you must pay the employee compensation for the 15 unused days. Employees can carry forward a maximum of 60 days of leave (two years’ worth), and any unused days beyond that ceiling must be paid out rather than accumulated further.
Leave payout on termination
When employment ends, you’re required to pay the employee for any vacation days they’ve accrued but not yet taken, calculated on a pro-rata basis. This applies regardless of the reason for termination, so factor accrued leave into any severance calculations.
Public holidays
Peru has 12 permanent statutory public holidays each year. In 2026, the government has also declared four additional non-working days, bringing the total to 16. The table below lists all 16 dates.
| Date | Holiday |
|---|---|
| January 1 | New Year’s Day |
| Maundy Thursday | Holy Thursday |
| Good Friday | Good Friday |
| May 1 | Labour Day |
| June 7* | Batalla de Arica |
| June 29 | San Pedro y San Pablo |
| July 23* | Día de la Fuerza Aérea |
| July 28 | Independence Day |
| July 29 | Independence Day |
| August 6* | Batalla de Junín |
| August 30 | Santa Rosa de Lima |
| October 8 | Combate de Angamos |
| November 1 | All Saints’ Day |
| December 8 | Immaculate Conception |
| December 9* | Batalla de Ayacucho |
| December 25 | Christmas Day |
*Government-declared non-working days for 2026 only.
Maundy Thursday and Good Friday fall on April 2 and April 3 in 2026. If employees work on a public holiday, you’ll need to either compensate them with an extra day off or pay a premium rate, as required by law.
Sick leave
Peruvian sick leave works on a split-responsibility model: you cover the first stretch, and then EsSalud, the national health insurer, takes over for an extended period.
Eligibility
An employee is entitled to sick leave benefits only if they’ve contributed to EsSalud for at least three consecutive months immediately before the illness, or for at least four of the six months preceding it. An employee who hasn’t yet met this threshold isn’t entitled to the EsSalud benefit, so it’s worth tracking contribution tenure carefully for newer hires.
Employer’s responsibility: the first 20 days
For the first 20 calendar days of any single illness episode, you pay the employee’s full salary. There’s no co-pay or shared arrangement during this window; the cost sits entirely with you as the employer.
Essalud coverage: from day 21 onwards
From the 21st day of illness, EsSalud takes over and pays the employee 100% of their average daily wages based on the previous four months’ earnings. This EsSalud subsidy can continue for up to 18 months in total, covering extended or serious medical conditions. Your payroll obligation ends once EsSalud assumes responsibility.
Maternity leave
Peru’s maternity leave regime is comprehensive, covering pre-birth and post-birth periods, multiple-birth scenarios, and long-term nursing support. The entire benefit is funded by EsSalud, not by the employer.
Duration
Employees are entitled to 49 days before the expected birth date and 49 days after, for a total of 98 days. If the employee chooses, she can waive the pre-birth portion and take the full 98 days as post-birth leave. For multiple births or the birth of a child with a disability, an additional 30 days applies, extending total leave to 128 days.
If the birth occurs later than expected, any extra pre-birth days beyond the original 49 are treated as paid sick leave rather than being deducted from the post-birth period.
Who pays
EsSalud covers 100% of the employee’s average daily earnings based on the four months preceding the leave. You don’t fund this directly, but you do need to ensure the employee meets the eligibility threshold: a minimum of three consecutive months of EsSalud contributions, or contributions in at least four of the last six months.
Protection from dismissal
An employee on maternity leave can’t be terminated. This protection applies for the full duration of the leave, so any dismissal during that period exposes you to legal liability.
Breastfeeding break
After returning to work, the employee is entitled to one hour per day for breastfeeding until the child reaches one year of age. This hour is typically taken as a mid-shift break and must be paid.
Essalud nursing subsidy
EsSalud pays a nursing subsidy equal to twice the minimum wage (2 x PEN 1,130 = PEN 2,260). This subsidy is payable from when the child turns eight months old until the child reaches 14 months, and it’s paid directly by EsSalud rather than routed through your payroll.
Edge cases
If birth occurs between 22 and 30 weeks of gestation, maternity leave is granted only if the baby survives at least 72 hours. After 30 weeks, the entitlement exists even in the case of stillbirth. These provisions reflect the legal treatment under Peruvian law and don’t require any action from you beyond ensuring the leave is recorded correctly.
Paternity leave
Peruvian paternity leave is structured in three tiers based on the circumstances of the birth. Leave must be taken as consecutive calendar days.
The three tiers
10 consecutive days apply for natural deliveries or caesarean sections where there are no complications.
20 consecutive days apply for premature births or multiple births (twins, triplets, and so on).
30 consecutive days apply where the newborn has a terminal congenital condition or a serious disability, or where the mother experiences significant health complications during or after birth.
When paternity leave can start
The employee can choose to start paternity leave on the date of birth, on the date the mother or newborn is discharged from hospital, or up to three days before the expected delivery date if supported by a medical certificate. You can’t require the employee to choose a specific start date; the choice belongs to them.
Combining leave types
If the employee notifies you at least 15 days before the expected delivery date, they’re entitled to take their annual leave immediately after paternity leave ends. This means a new parent could potentially be absent for up to 40 days in a standard delivery scenario (10 days paternity plus 30 days annual leave), so factor this into resourcing plans.
Adoption leave
Employees who legally adopt a child aged 12 or younger are entitled to 30 days of paid leave. The leave begins from the date the child is placed in the employee’s care, and the same rules that apply to parental leave generally (pay continuation, job protection) apply here. This entitlement is available regardless of whether the adopting employee is male or female.
Mandatory bonuses and cts
Peru requires two annual bonus payments and a separate severance savings contribution known as CTS. These are among the most significant cost items in any Peruvian employment relationship, so it’s worth understanding the mechanics clearly. For a detailed breakdown of how these integrate into your payroll cycle, refer to the RemotePass Peru payroll guide.
Mandatory bonuses
You must pay two bonuses each year:
- Fiestas Patrias bonus (July): paid before July 28, equal to one full month’s salary
- Christmas bonus (December): paid before December 25, equal to one full month’s salary
For commission earners, the bonus equals the monthly salary plus the average commission from the previous six months. If employment ends before either payment date, you’re required to pay a pro-rata amount for the period worked since the last bonus was paid.
Cts (compensation for time of service)
CTS is a legally mandated severance savings fund that accrues throughout employment. You make two deposits per year:
- May deposit: covers the period November 1 to April 30
- November deposit: covers the period May 1 to October 31
The accrual rate is approximately 50% of the employee’s monthly salary plus one-sixth of their annual bonus per semester, which works out to roughly one full month of total remuneration per year. These deposits go into a bank account in the employee’s name and are accessible under specific legal circumstances.
2026 note: Congress has approved free CTS withdrawal until December 31, 2026, meaning employees can access their CTS balances without restriction through the end of this year. This doesn’t change your deposit obligations, but employees may be more likely to draw on accumulated balances during this window.
Mandatory benefits
Beyond leave and bonuses, Peruvian law requires employers to fund or facilitate several statutory benefits. These aren’t optional supplements; they’re legal obligations that apply from day one of employment.
Essalud (health insurance)
EsSalud is Peru’s national health insurance system. You contribute 9% of each employee’s monthly salary to EsSalud on their behalf. This contribution covers the employee’s access to medical care, hospitalisation, specialist treatment, and maternity benefits including the nursing subsidy described above. Coverage extends to all employees on your payroll, including expats working in Peru.
EsSalud is the mechanism through which sick pay from day 21 and all maternity benefits are funded, so your 9% contribution is effectively the primary social protection contribution in the Peruvian system.
Pension
Every employee in Peru must be enrolled in one of two pension systems:
- ONP (Sistema Nacional de Pensiones): the public national system, funded by a 13% employee contribution deducted from salary
- AFP (Administradoras de Fondos de Pensiones): private pension funds, funded by approximately 10% of salary plus insurance and administrative commissions, also deducted from the employee’s pay
The employee chooses which system to join. Your obligation is to deduct the correct contribution and remit it to the appropriate fund each month. AFP deductions are slightly higher than ONP due to the insurance and commission components, so your payroll software needs to handle both configurations.
Vida ley (mandatory life insurance)
Vida Ley is a mandatory life insurance policy that you as the employer must fund. The premium rate varies based on the employee’s age and salary level. The policy provides a lump-sum benefit to the employee’s beneficiaries in the event of death or permanent disability, and it’s been a statutory requirement in Peru since 1997. Premiums are typically structured per employee and are paid directly to an insurer you select from the approved list.
Labour risk insurance
If any of your employees work in roles classified as hazardous under Peruvian health and safety regulations (for example, construction, mining, or certain manufacturing roles), you must provide mandatory labour risk insurance. This insurance covers occupational accidents and diseases. The requirement and premium level depend on the risk classification of each role, so check the SCTR (Seguro Complementario de Trabajo de Riesgo) regulations against your job descriptions before onboarding workers in physical or field-based positions.
Frequently asked questions
Can an employee in Peru carry over unused annual leave indefinitely?
No. The maximum carry-forward is 60 calendar days, equivalent to two years of accrued leave. Any unused days beyond that threshold must be paid out. If you and an employee agree to reduce the leave taken from 30 days to 15 days in a given year, you must compensate the employee for the 15 unused days.
Who pays maternity benefit in Peru?
EsSalud pays 100% of the maternity benefit, calculated on the employee’s average daily earnings over the four months before leave begins. You don’t fund maternity pay directly, but you do fund EsSalud through your 9% monthly contribution. The employee must meet the contribution eligibility threshold to qualify.
Are the four additional public holidays in 2026 permanent?
No. The four extra non-working days declared for 2026 (June 7, July 23, August 6, and December 9) are government declarations for this year only. The 12 permanent statutory holidays remain unchanged year to year; the total of 16 is specific to 2026.
What happens to an employee’s CTS if they’re terminated?
On termination, the full accumulated CTS balance in the employee’s account becomes available to them immediately. You’re also required to make a final pro-rata CTS deposit covering the period from the last deposit date to the termination date. In 2026, the free withdrawal period means employees can access their CTS regardless of the reason employment ends.
Does an EOR handle CTS deposits and bonus payments automatically?
Yes. When you hire through an EOR, the provider takes on full legal employer status in Peru and manages CTS deposits, bonus payments, EsSalud contributions, and pension deductions as part of the service. This removes the administrative burden and compliance risk from your team entirely. If you’re evaluating providers, look at how EOR services handle mid-year hires and pro-rata calculations, as these are the most common source of payroll errors.
Hire in peru with confidence
Peru’s statutory framework is detailed but manageable once you understand the structure. The key figures to keep front of mind: 30 days annual leave, two bonus payments per year at one month’s salary each, a 9% EsSalud contribution, and CTS deposits twice a year. Add maternity and paternity leave to your headcount planning, and you’ll avoid the most common compliance gaps.
RemotePass makes it straightforward to hire and pay employees in Peru without setting up a local entity. Book a RemotePass demo to see how the platform handles Peruvian payroll, benefits, and compliance end to end.
