Peru: Taxes and Labor Costs

Tax law in Peru

 

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.

 

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