Countries › Peru › Guide › 7. Labor and employment

7. Labor and employment: Peru

Labor and employment in Peru: the indefinite contract presumption and the limits on fixed term hiring, the minimum wage and its 2026 to 2027 increase, the 48 hour week and overtime, the two statutory bonuses, the CTS severance fund, vacation, EsSalud and pension contributions, profit sharing, dismissal indemnities and the caps on foreign staff, each tied to the official text.

Investor view. Peru's labor costs are predictable and capped, with dismissal indemnities limited to 12 salaries and pensions funded by workers, which lets employers plan headcount and growth with clear numbers.

Employing people in Peru: contracts, the S/ 1,230 minimum wage, hours, statutory bonuses, CTS, EsSalud, profit sharing, dismissal and foreign staff limitsPeruvian employment is presumed indefinite; fixed term contracts must be written, justified and capped at five years, and the trial period is three months. The minimum wage is S/ 1,230 a month from 1