Countries › Peru › Guide › 6. Taxes › Payroll taxes in Peru: employee income tax withholding, the 9 percent EsSalud contribution, pension contributions and the 183 day rule for foreign staff
Payroll taxes in Peru: employee income tax withholding, the 9 percent EsSalud contribution, pension contributions and the 183 day rule for foreign staff
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Last verified: 2026-10-28 · Status: Changing
Employers pay 9 percent of each worker's pay to EsSalud, the social health insurer, on a base no lower than the minimum wage (S/ 1,230 a month since 1 October 2026). They also withhold the worker's pension contribution (13 percent to the public ONP system, or the private AFP system if the worker chose it) and fifth category income tax, projected on annual pay less a 7 UIT deduction (S/ 38,500) and taxed from 8 to 30 percent. Foreign employees are non domiciled for their first 183 days in any 12 months and taxed at a flat 30 percent on Peruvian employment income.
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 set by Decreto Supremo Nº 301-2025-EF. Conversions are for orientation only.
Key facts
| EsSalud employer contribution | 9 % of payLey 26790 art. 6 a), as of 2026-10-28 · in force |
|---|---|
| ONP employee pension contribution | 13 % of paySUNAT ONP orientation, as of 2026-10-28 · in force |
| Minimum wage (private sector) from 1 October 2026 | 1230 PENDS 015-2026-TR art. 1.2, as of 2026-10-28 · in force |
| Top employment income tax rate (above 45 UIT) | 30 %LIR art. 53, as of 2026-10-28 · in force |
| Annual fixed deduction for employment income | 7 UITLIR art. 46, as of 2026-10-28 · in force |
| Tax on non domiciled individuals' employment income | 30 %LIR art. 54 g), as of 2026-10-28 · in force |
| Days in any 12 months after which a foreigner is domiciled | 183 daysLIR art. 7 b), as of 2026-10-28 · in force |
The rule
1. Employers pay EsSalud contributions for active workers equal to 9 percent of their remuneration, monthly. The contribution is the employer's cost, not withheld from the worker.
Cost to do it: 9 percent of pay; on a monthly salary of S/ 10,000 it is S/ 900 (about US$261) a month.Ley Nº 26790, Ley de Modernización de la Seguridad Social en Salud, Art. 6 letter a), 1997-05-17 official text · verified 2026-10-28
Cost to do it: 9 percent of pay; on a monthly salary of S/ 10,000 it is S/ 900 (about US$261) a month.Ley Nº 26790, Ley de Modernización de la Seguridad Social en Salud, Art. 6 letter a), 1997-05-17 official text · verified 2026-10-28
2. SUNAT collects EsSalud contributions monthly through the PLAME electronic payroll return, and the base an employer declares cannot be lower than the minimum wage.SUNAT orientation on gob.pe, Aportes a EsSalud recaudados por SUNAT (page last updated 4 February 2025, citing Resolución de Superintendencia Nº 096-2007), Contribution base and filing, 2025-02-04 official text · verified 2026-10-28
3. The minimum wage for private sector workers rose from S/ 1,130 to S/ 1,230 a month from 1 October 2026, the first of two steps toward S/ 1,300; the second step of S/ 70 is to be set by a new supreme decree in the first half of 2027. The minimum EsSalud contribution therefore rose to S/ 110.70 a month.Decreto Supremo Nº 015-2026-TR, Art. 1.1 and art. 1.2, 2026-09-28 official text · verified 2026-10-28 · changed: From 1 October 2026 the minimum wage, and with it the minimum EsSalud base, rose from S/ 1,130 to S/ 1,230; a further S/ 70 is announced for the first half of 2027.
4. Workers in the public pension system (Sistema Nacional de Pensiones, run by the ONP) contribute 13 percent of their monthly pay; the employer withholds it from each payment and declares and pays it monthly through PLAME. Workers can instead join the private pension system (SPP), whose contributions the employer also withholds.SUNAT orientation on gob.pe, Aportes a la ONP recaudados por SUNAT (page last updated 9 July 2023), Contribution rate and withholding, 2023-07-09 official text · verified 2026-10-28
5. Employment (fifth category) income is taxed on net pay after a fixed deduction of 7 UIT a year, using a cumulative scale applied to net labor income plus foreign source income: 8 percent up to 5 UIT, 14 percent above 5 and up to 20 UIT, 17 percent above 20 and up to 35 UIT, 20 percent above 35 and up to 45 UIT, and 30 percent above 45 UIT.
Example: Annual pay of S/ 120,000 less 7 UIT (S/ 38,500) leaves S/ 81,500, taxed S/ 9,760 for the year. / Annual pay US$34,762: tax about US$2,827.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), art. 53 as amended by Ley Nº 30296, Art. 34, art. 46 first paragraph and art. 53, 2014-12-31 official text · verified 2026-10-28
Example: Annual pay of S/ 120,000 less 7 UIT (S/ 38,500) leaves S/ 81,500, taxed S/ 9,760 for the year. / Annual pay US$34,762: tax about US$2,827.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), art. 53 as amended by Ley Nº 30296, Art. 34, art. 46 first paragraph and art. 53, 2014-12-31 official text · verified 2026-10-28
6. Employers withhold fifth category tax every month equal to one twelfth of the tax projected on the worker's total taxable pay for the year, after the 7 UIT deduction.
Example: On annual projected pay of S/ 120,000 the monthly withholding is about S/ 813.33.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), first paragraph as amended by Decreto Legislativo Nº 1258, Art. 75 first paragraph, 2016-12-08 official text · verified 2026-10-28
Example: On annual projected pay of S/ 120,000 the monthly withholding is about S/ 813.33.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), first paragraph as amended by Decreto Legislativo Nº 1258, Art. 75 first paragraph, 2016-12-08 official text · verified 2026-10-28
7. Foreign individuals become domiciled for income tax after residing or staying in Peru more than 183 calendar days within any 12 month period. Until then, their Peruvian employment income is taxed at a flat 30 percent on the gross amount, withheld by the employer as a final tax.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), art. 7 as substituted by Decreto Legislativo Nº 970, Art. 7 letter b), art. 54 letter g) and art. 76 letter f), 2006-12-24 official text · verified 2026-10-28
8. Payroll withholdings and contributions for each month are paid within the first twelve business days of the following month, on the schedule SUNAT publishes by last RUC digit.Texto Único Ordenado del Código Tributario (Decreto Supremo Nº 133-2013-EF), art. 29 letter b) as amended by Ley Nº 30524, Art. 29 letter b), 2016-12-13 official text · verified 2026-10-28
| Net annual income | In soles (2026) | Rate on the slice |
|---|---|---|
| Up to 5 UIT | Up to S/ 27,500 | 8% |
| Above 5 up to 20 UIT | S/ 27,500 to S/ 110,000 | 14% |
| Above 20 up to 35 UIT | S/ 110,000 to S/ 192,500 | 17% |
| Above 35 up to 45 UIT | S/ 192,500 to S/ 247,500 | 20% |
| Above 45 UIT | Above S/ 247,500 | 30% |
Employment income tax scale for domiciled individuals (LIR art. 53), with 2026 UIT of S/ 5,500, applied after the 7 UIT (S/ 38,500) deduction
Worked example
- A Peruvian subsidiary hires a local manager at S/ 10,000 a month (US$2,897), with projected annual taxable pay of S/ 120,000.
- The employer pays EsSalud of S/ 900 (US$261) a month on top of salary. If the manager is in the ONP system, it withholds S/ 1,300 (US$377) a month for the pension.
- Annual fifth category tax is S/ 9,760 (US$2,827), withheld at about S/ 813.33 a month. A newly arrived foreign manager on the same pay would bear 30 percent, S/ 3,000 a month, until passing 183 days in Peru.
Step by step
- Register as an employer with SUNAT, enrol each worker in the electronic payroll and record each worker's pension choice (ONP or AFP).
- Each month compute pay, the EsSalud contribution, the pension withholding and the fifth category withholding using the annual projection.
- File PLAME and pay all items within the first twelve business days of the following month on SUNAT's schedule.
- Track foreign employees' days in Peru to switch from 30 percent flat to the progressive scale once they become domiciled.
Common traps
- The EsSalud base cannot fall below the minimum wage, which rose to S/ 1,230 in October 2026 and is due to rise again in 2027.
- Fifth category withholding is a projection; bonuses and pay changes mid year require recalculating the monthly amount.
- A foreign employee taxed as non domiciled pays 30 percent on gross pay with no 7 UIT deduction.
- Labor costs such as gratificaciones, CTS severance deposits and profit sharing come on top of these contributions; see the labor section.
Sources
- Congreso de la República, Ley Nº 26790 (El Peruano, 17 May 1997)
- Gob.pe SUNAT orientation, Aportes a EsSalud recaudados por SUNAT
- Gob.pe SUNAT orientation, Aportes a la ONP recaudados por SUNAT
- Ministerio de Trabajo, Decreto Supremo Nº 015-2026-TR (minimum wage)
- SUNAT, Ley del Impuesto a la Renta, Chapter II (domicile and source, art. 6 to 13)
- SUNAT, Ley del Impuesto a la Renta, Chapter VI (net income, art. 35 to 51)
- SUNAT, Ley del Impuesto a la Renta, Chapter VII (rates, art. 52-A to 56)
- SUNAT, Ley del Impuesto a la Renta, Chapter X (withholding, art. 67 to 78)
- SUNAT, Texto Único Ordenado del Código Tributario (DS 133-2013-EF), updated to 26 June 2026
- SUNAT, Resolución de Superintendencia Nº 000016-2026/SUNAT citing the 2026 UIT under DS 301-2025-EF
- BCRP statistics, SBS banking system selling exchange rate (PD04640PD)
Related pages
- labor/employing-people
- immigration/visas-and-residence
- taxes/corporate-income-tax
- normal-abroad/what-works-differently-in-peru
- /country/peru/
- /calendar/
- Live dashboard
Related: Peru country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide
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