PeruPeru is where US startups go for strong, affordable engineering talent in a timezone identical to US Eastern (UTC-5, no daylight saving). The surprise is the employer cost stack: two mandatory bonuses (gratificaciones), a severance-style savings fund (CTS), and 30 days of vacation add up to a 30-40% load on top of gross salary, the heaviest of any major LATAM hiring market.
Here's what you actually need to know.
Quick facts
| Peru | |
|---|---|
| Currency | Peruvian Sol (PEN) |
| Standard work week | 48 hours, 6 days |
| Payroll frequency | Monthly |
| Employer statutory cost | ~30-40% on top of gross salary |
| Minimum wage | PEN 1,130/month |
| Probation | 3 months (extendable for senior roles) |
| Notice period | 30 days |
| 13th month pay | Yes, twice: gratificaciones in July and December |
| Employees paid in | PEN, required by law |
First decision: contractor or employee?
Most US startups start with contractors in Peru, and for independent senior engineers it's a clean structure: same-day onboarding, invoice-based payment, no statutory benefits to fund.
The misclassification line matters more in Peru than in most markets, because the cost of getting it wrong is bigger: an employee is owed gratificaciones, CTS deposits, 30 days of vacation, and health contributions retroactively. If you set their hours, they work only for you, and you manage them day to day, Peruvian authorities will treat them as an employee. Peru even requires employers to register workers electronically (T-Registro) from day one, so there's a paper trail. When someone becomes core to the team, convert them through an employer of record (EOR) or your own Peruvian entity.
Paying contractors in Peru
The mechanics are simpler than most founders expect:
- Collect a W-8BEN before the first payment. It certifies the contractor is a non-US person, so you generally don't issue a 1099. Confirm your setup with your accountant.
- Sign a real contract with scope, rate, IP assignment, and termination terms, written with Peruvian law in mind rather than a copy of your US template.
- Pay in USD or PEN, their choice. Contractors can invoice in USD, and many prefer it. The expensive mistake is bank wires: $25-45 per wire plus an FX spread buried in the rate, arriving days later.
Shor pays Peruvian contractors over local rails, same-day, at a flat disclosed 2% FX margin, for $19/month per contractor. Contracts, W-8BEN collection, and invoicing are built in.
Hiring full-time employees
Employer-side statutory costs on top of gross salary:
| Contribution | Rate (employer side) | Notes |
|---|---|---|
| EsSalud (health) | 9% | Public health insurance; covers employee and dependents |
| Gratificaciones | 16.67% annualized | Two extra months of salary, paid in July and December |
| CTS (severance fund) | 8.33% annualized | Deposited to the employee's CTS bank account each May and November |
| Vacation provision | 8.33% | Funds the 30 calendar days of paid annual leave |
Headline employer load: 30-40% on top of gross salary. A PEN 10,000/month engineer really costs you around PEN 13,000-14,000/month before platform fees. Budget offers with that number, not the gross. Pension (around 13%, AFP or ONP at the employee's choice) is employee-funded and withheld from gross, so it doesn't add to your side.
Two structural points founders miss:
- The bonuses are salary, not a nice-to-have. Gratificaciones are one full month of salary each, every July and December, prorated if the employee joined mid-period.
- CTS is severance you fund in advance. It's deposited into a separate bank account in the employee's name twice a year, and it's owed regardless of how or why employment ends.
Employees must be paid in PEN, on a Spanish-language contract, with monthly electronic payroll filings (PLAME) to the tax authority (SUNAT). Statutory rates change; confirm current figures with your accountant before making offers.
Leave and benefits
- Annual leave: 30 calendar days
- Sick leave: paid at full salary; the employer covers an initial period, then the social insurance system takes over
- Maternity leave: 14 weeks at full pay, state-funded
- Paternity leave: 10 days, paid
- Public holidays: ~15 days
Beyond statute, competitive offers in Peru commonly add private health insurance (EPS) on top of EsSalud, meal vouchers, life insurance, and performance bonuses.
Ending employment
Peru is a high-protection market. Expect:
- 30 days' notice
- Indemnification for unjustified dismissal of 1.5 months' salary per year of service, capped at 12 months
- CTS balance paid out regardless of the reason for termination
- A final settlement covering accrued salary, prorated gratificaciones, CTS, outstanding vacation pay, and any indemnification
Termination without documented cause is the most expensive mistake in Peruvian employment. Probation (the first 3 months) is the one window where separation is simple, so use it deliberately. This is exactly where an EOR earns its fee.
Documents we'll collect from your employee at onboarding
DNI (national ID), RUC (tax registration, where they have one), their AFP or ONP pension enrollment number, and a Peruvian bank account for salary plus a separate CTS account for the semi-annual deposits.
What it costs through Shor
- Contractors: $19/month each, same-day PEN or USD payouts
- Full-time employees (EOR): $299/month each, gratificaciones, CTS, EsSalud, and all filings handled
No setup fees, and the FX margin is a flat disclosed 2%. The pricing calculator shows the full Peru math including every statutory line.
FAQ
Can I pay Peruvian employees in USD? No. Salary must be paid in PEN, and CTS deposits go to a separate PEN bank account. Contractors, however, can invoice in USD.
How much do the mandatory bonuses really add? Gratificaciones alone add 16.67% annualized (two extra months of salary per year), and CTS adds another 8.33%. Combined with EsSalud and vacation, plan on total employment cost of roughly 1.3-1.4x gross salary.
What does an employer of record in Peru cost? With Shor, $299/month per employee, plus the statutory employer contributions (roughly 30-40% of gross) that any employer in Peru pays. Deel and Remote charge $599-699/month for the same coverage.
How fast can someone start? Contractors: same day, once the contract is signed and the W-8BEN is in. Employees via EOR: typically 12-20 business days, driven by SUNAT registration, pension enrollment, and first-cycle payroll setup.