Countries › Peru › Guide › 7. Labor and employment › Profit sharing in Peru: 5, 8 or 10 percent of pre tax income for companies above 20 workers, how it is split and when it is paid

Profit sharing in Peru: 5, 8 or 10 percent of pre tax income for companies above 20 workers, how it is split and when it is paid

Last verified: 2026-10-28 · Status: Stable

Companies with business income and more than 20 workers must share part of their annual income before tax with employees: 10 percent in fishing, telecommunications and industry, 8 percent in mining, trade and restaurants, and 5 percent in other activities. Half is split by days worked and half by pay, each worker's share is capped at 18 monthly salaries, and any excess goes to a regional training and employment fund. The share is computed on taxable income after loss carryforwards, is deductible for income tax and is due within 30 days after the annual income tax return deadline.

USD figures use S/ 3.452 per US dollar, the banking system selling rate published by the Superintendencia de Banca, Seguros y AFP for 27 October 2026, from the Banco Central de Reserva del Perú statistics series PD04640PD. UIT based amounts use the 2026 UIT of S/ 5,500 (Decreto Supremo Nº 301-2025-EF, as cited by SUNAT Resolución de Superintendencia Nº 000016-2026). Conversions are for orientation only.

Key facts

Highest statutory profit share (fishing, telecom, industry)	10 % of pre tax incomeDL 892 art. 2, as of 2026-10-28 · in force
Profit share for mining, trade and restaurants	8 % of pre tax incomeDL 892 art. 2, as of 2026-10-28 · in force
Profit share for other activities	5 % of pre tax incomeDL 892 art. 2, as of 2026-10-28 · in force
Cap on each worker's profit share	18 monthly salariesDL 892 art. 2, as of 2026-10-28 · in force
Companies with up to this many workers are excluded	20 workersDL 677 art. 9, as of 2026-10-28 · in force
Payment deadline after the annual income tax return due date	30 calendar daysDL 892 art. 6, as of 2026-10-28 · in force
Profit share deductible for corporate income tax	Yes flagDL 892 art. 10, as of 2026-10-28 · in force

The rule

1. Workers of companies with third category (business) income participate in the profits through the distribution of a percentage of annual income before tax: fishing, telecommunications and industrial companies 10 percent; mining, wholesale and retail trade and restaurants 8 percent; other activities 5 percent.
Cost to do it: 5 to 10 percent of taxable income, depending on the activity.Decreto Legislativo Nº 892, Art. 1 and 2, 1996-11-11 official text · verified 2026-10-28

2. Cooperatives, self managed companies, civil partnerships and companies with no more than 20 workers are excluded from profit sharing.Decreto Legislativo Nº 677, Art. 9, 1991-10-07 official text · verified 2026-10-28

3. Half of the amount is distributed according to the days each worker actually worked (prenatal and postnatal rest counts as worked), and half in proportion to each worker's pay for the year. Each worker's share is capped at 18 monthly salaries in force at year end, and any remainder goes to a fund for training and employment promotion in the region where it arose, except Lima and Callao.
Example: In an industrial company with S/ 3,000,000 of taxable income and 30 workers, the pool is S/ 300,000.00; a worker with a full year and S/ 60,000 of pay out of a S/ 2,400,000 payroll receives S/ 5,000.00 by days plus S/ 3,750.00 by pay = S/ 8,750.00. / About US$2,534.76 for that worker, from a pool of about US$86,906.14.Decreto Legislativo Nº 892 as amended by Ley Nº 30792 and Ley Nº 28756, Art. 2 and 3, 2018-06-15 official text · verified 2026-10-28

4. The share is calculated on the taxable income for the year after offsetting prior year losses under income tax rules. All workers who worked the company's maximum working day participate, whether indefinite or fixed term; part time workers participate in proportion to their hours, and workers on medical leave for a work accident or occupational illness participate on equal terms.Decreto Legislativo Nº 892 as amended by Ley Nº 29783, Art. 4 and 5, 2011-08-20 official text · verified 2026-10-28

5. The share is paid within 30 calendar days after the deadline for filing the annual income tax return; late payment after a written demand bears interest. The company must give each worker and former worker a statement showing the calculation. Former workers can claim within the limitation period; unclaimed amounts are added to the next distribution. Statutory, unilateral and agreed profit shares are deductible expenses for income tax.Decreto Legislativo Nº 892, Art. 6, 7, 9 and 10, 1996-11-11 official text · verified 2026-10-28

Activity	Share of income before tax
Fishing	10 percent
Telecommunications	10 percent
Industrial	10 percent
Mining	8 percent
Wholesale and retail trade and restaurants	8 percent
Other activities	5 percent

Statutory profit share by activity (Decreto Legislativo Nº 892 art. 2; companies above 20 workers, DL 677 art. 9; cap of 18 monthly salaries per worker).

Worked example

A packaging manufacturer in Lima (industrial, 10 percent) with 30 workers reports S/ 3,000,000 of taxable income for 2026 after loss carryforwards (DL 892 art. 2 and 4).
It sets aside S/ 300,000.00 (about US$86,906.14) for its workers, deductible in the same year's return (art. 10).
Half (S/ 150,000.00) is split by days worked and half by pay; a full year worker on S/ 5,000 a month receives S/ 8,750.00, well under the cap of 18 salaries (S/ 90,000) (art. 2).
It pays within 30 days after its 2026 annual return deadline and gives each worker a written calculation (art. 6 and 7).

Step by step

Track average headcount during the year; above 20 workers the company is covered (DL 677 art. 9).
Classify the company's activity to pick the 5, 8 or 10 percent rate (DL 892 art. 2).
After closing the year, compute taxable income net of loss carryforwards and apply the rate (art. 4).
Split half by days worked and half by pay, apply the 18 salary cap and send any excess to the regional fund (art. 2 and 3).
Pay within 30 days after the annual return deadline, with a written statement to each current and former worker (art. 6 and 7).

Common traps

Profit sharing is an extra cost on top of corporate income tax, taking up to 10 percent of taxable income before tax (DL 892 art. 2).
Fixed term and part time workers participate too, the latter in proportion to their hours (art. 5).
Former workers who left during the year still have a claim to their share (art. 9).
Days on maternity rest and on medical leave for work accidents count as worked (art. 2 and 5).
Integral annual pay agreements do not absorb profit sharing (DS 003-97-TR art. 8).

Sources

← Dismissal and severance in Peru: just cause, the six day defence letter, 1.5 salaries per year capped at 12, void dismissals and collective layoffsUnions, collective bargaining and strikes in Peru: 20 worker company unions, union protection, one year agreements and strike rules →

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