Peru: Taxes and labor costs
Tax impact on salary
| Employer | Employee |
|---|---|
| –9% (Social Security) | –13% (Government Pension Fund) or |
| –0.90% (basic tax for work accidents insurance, certain industries) plus a % based on each industry) | –11-12% ( Private pension Fund) -Income Tax bracket |
Cost of labor benefits in payroll
| Employer | |
|---|---|
| 9.72% | – 30 days’ salary (for each year as service compensation) |
| 8.33% | – 30 ddays’salary (bonus on July for National holidays),requiree certain conditions |
| 8.33% | – 30 days’ salary (bonus on December for Christmas),requiree certain conditions |
| 8.33% | – 30 days’ salary (Annual holidays),requiree certain conditions) |
| 0.75% | SENATI ( contribution from manufacturers only) |
| 45.36% | Total cost of salary |
Note.- By law, workers also have a profit-sharing right. The percentage depends on the type of industry.