Countries › Peru › Guide › 16. What is normal abroad but not here › Workers share in profits by law once a company passes 20 employees

Workers share in profits by law once a company passes 20 employees

Last verified: 2026-10-29 · Status: Stable

Abroad profit sharing is a voluntary incentive; in Peru companies with business income and more than 20 workers must distribute 5, 8 or 10 percent of annual pre tax profit to staff. Half is split by days worked and half by pay, each worker's share is capped at 18 monthly salaries, and the excess goes to a public training fund and the regions. The share is calculated on taxable income after loss carryforwards and must be paid within 30 days of 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 amounts use the 2026 UIT of S/ 5,500 set by Decreto Supremo Nº 301-2025-EF, as cited in SUNAT Resolución de Superintendencia Nº 000016-2026/SUNAT. Conversions are for orientation only.

Key facts

Mandatory profit sharing, fishing, telecoms and industry	10 % of pre tax incomeDL 892 art. 2, as of 2026-10-29 · in force
Mandatory profit sharing, mining, trade and restaurants	8 % of pre tax incomeDL 892 art. 2, as of 2026-10-29 · in force
Mandatory profit sharing, other activities	5 % of pre tax incomeDL 892 art. 2, as of 2026-10-29 · in force
Cap per worker	18 monthly salariesDL 892 art. 2, as of 2026-10-29 · in force
Profit sharing applies above this average headcount	20 workersDL 677 art. 9; DS 009-98-TR art. 2, as of 2026-10-29 · in force
Days after the annual return deadline to pay the profit share	30 calendar daysDL 892 art. 6, as of 2026-10-29 · in force

The rule

1. Workers of companies that earn business (third category) income participate in profits through the distribution of a percentage of annual income before taxes: 10 percent in fishing, telecommunications and industrial companies; 8 percent in mining, wholesale and retail trade and restaurants; 5 percent in other activities.
Cost to do it: 5, 8 or 10 percent of pre tax profit.
Example: A software services company with S/ 10,000,000 of pre tax profit distributes S/ 500,000; a manufacturer with the same profit distributes S/ 1,000,000. / Profit of about US$2,896,871; shares of about US$144,844 and US$289,687.Decreto Legislativo Nº 892 (El Peruano 11 November 1996), Art. 1 and 2, 1996-11-11 official text · verified 2026-10-29

2. Half of the amount is distributed by the days actually worked by each worker (prenatal and postnatal leave count as days worked) and half in proportion to each worker's remuneration. Each worker's share is capped at 18 monthly remunerations in force at year end; the remainder goes to training and job promotion through FONDOEMPLEO and to regional investment projects.
Cost to do it: Uncapped for most staff; capped at 18 salaries per worker.
Example: A worker earning S/ 4,000 a month can receive at most S/ 72,000 for the year; anything above goes to the remnant. / Cap of about US$20,857.Decreto Legislativo Nº 892, art. 2 a) as amended by Ley Nº 30792 (15 June 2018) and art. 3, Art. 2 and 3, 2018-06-15 official text · verified 2026-10-29

3. The participation is calculated on the taxable income of the year after offsetting prior year losses under income tax rules, and must be distributed within 30 calendar days after the legal deadline for filing the annual income tax return; unpaid amounts then accrue late interest after a written demand. Workers must receive a written settlement showing the calculation.
Cost to do it: Cash outflow within about a month of the annual return deadline.
Example: If the annual return for 2026 is due in late March or early April 2027, the profit share must be paid within the following 30 calendar days.Decreto Legislativo Nº 892, Art. 4, 6 and 7, 1996-11-11 official text · verified 2026-10-29

4. Cooperatives, self managed companies, civil partnerships and companies that do not exceed 20 workers are excluded. Headcount is measured by adding the workers employed in each month of the year (taking the highest number in a month) and dividing by 12, rounding fractions of 0.5 or more up; workers on indefinite, fixed term and part time contracts all count.
Cost to do it: No profit sharing at 20 workers or fewer.
Example: Monthly headcounts that add up to 246 over the year average 20.5, which rounds up to 21: the company exceeds 20 and must share profits for the whole year.Decreto Legislativo Nº 677 (El Peruano 7 October 1991); Decreto Supremo Nº 009-98-TR (El Peruano 6 August 1998), DL 677 art. 9; DS 009-98-TR art. 2, 1998-08-06 official text · verified 2026-10-29

Activity	Rate	Amount	Amount in USD
Fishing, telecommunications, industry	10%	S/ 1,000,000	US$289,687
Mining, wholesale and retail trade, restaurants	8%	S/ 800,000	US$231,750
Other activities	5%	S/ 500,000	US$144,844

Profit share on S/ 10,000,000 of pre tax profit by activity (USD at S/ 3.452)

Worked example

A retailer with 40 workers and S/ 3,000,000 of taxable income after losses distributes 8 percent, S/ 240,000 (about US$69,525): S/ 120,000 by days worked and S/ 120,000 by pay. A worker with 300 of the 12,000 total days worked and S/ 60,000 of the S/ 2,400,000 total payroll receives S/ 3,000 plus S/ 3,000, S/ 6,000 (about US$1,738), well below the 18 salary cap.

Step by step

Track monthly headcount (highest number each month) and compute the yearly average; plan for the threshold before hiring the 21st worker.
Identify the company's main activity to apply 10, 8 or 5 percent.
Accrue the profit share monthly so the annual result is not a surprise.
Compute it on taxable income after loss carryforwards, apply the 18 salary cap per worker and report the remnant to FONDOEMPLEO by the annual return deadline.
Pay within 30 calendar days after the annual return deadline and hand each worker and former worker a written settlement.

Common traps

Former workers who worked during the year are also owed their share.
Crossing 20 workers on average triggers sharing for the whole year, not only from the month the threshold was passed.
Profit sharing is mandatory even if the company does not distribute dividends.
Using outsourcing or staffing to stay under 20 workers is risky where the staff are in fact directly employed.

Sources

← Severance is prefunded twice a year: the CTS depositsNo dismissal at will: cause, procedure or an indemnity →

Get rule changes weekly

Free. One email a week from The LatAm Thread.

One more step after you press the button: we take you to Substack, where your email is already filled in. Confirm there to start. No spam, unsubscribe anytime, we never share your address. By subscribing you agree to the privacy policy.