Luis Fuentes, a finance specialist and international business expert, serves as Corporate Affairs Director at Alligare International LLC and leads Estudio Fuentes. With over 10 years of experience, he excels in financial advisory, business internationalization, and strategic corporate solutions, helping companies in Latin America, Europe, and Asia expand globally.
Learn about Peru labor laws, including working hours, paid time off, minimum wage, and employment regulations.
Table of Contents
Key Insights into Peru Labor Laws: Understanding Worker Rights, Benefits, and Employer Obligations
In this article, we explore the key regulations governing labor in Peru, including working hours, overtime pay, maternity and paternity leave, vacation days, public holidays, minimum wage, mandatory bonuses, and pension contributions. We also address frequently asked questions about child labor, remote workers’ rights, fixed-term contracts, and part-time jobs.
By understanding these labor laws, both employees and employers can ensure fair treatment and legal compliance in the workplace.
What are the regulations for working hours and overtime?
The regulation of working hours and overtime in Peru ensures fair compensation and a balance between work and personal life. Employees must adhere to specific limits on daily and weekly work hours, while employers are required to compensate overtime appropriately. Below are the key details:
- Standard workweek: 48 hours (maximum of 8 hours per day).
- Night shifts (10 PM–6 AM): Paid at least 35% more than the minimum wage.
- Overtime pay:
- First two extra hours → 25% increase.
- Each additional hour → 35% increase.
- Mandatory weekly rest: Employees must have at least 24 consecutive hours off per week.
- Impact of Labor Reforms: A study on labor market reforms in Peru found that excessive employment protection can lead to unintended negative consequences, such as reduced formal employment opportunities and higher turnover rates [Jiménez & Rendon, 2023].
As a lawyer with experience in corporate law and legal advisory in Peru, I have had the opportunity to analyze in depth the country’s labor regulations. These laws not only protect the rights of workers but also provide a clear framework for employers. Below, I detail the most important aspects of Peruvian labor legislation.
What are the regulations for paid time off and public holidays?
Taking time off from work is essential for maintaining a healthy work-life balance. In Peru, employees are granted both paid vacation leave and public holidays to ensure they have adequate rest periods throughout the year. Below are the specific regulations governing paid time off:
- Vacation leave: Employees are entitled to 30 days of paid vacation per year.
- Public holidays: There are 12 paid national holidays.
- Holiday pay: If an employee works on a public holiday, they receive double pay or compensatory time off.
- Economic Impact: Research indicates that Peru’s formal employment sector has been influenced by its vacation and holiday policies, as firms adapt labor costs in response to paid leave regulations [Jaramillo, 2019].
What are the maternity and paternity leave policies?
Balancing work and family responsibilities is crucial for employees, and Peru provides legal protections to support new parents. The country offers both maternity and paternity leave to ensure parents have time to care for their newborns while maintaining job security. Below are the specific details:
- Maternity leave: 49 days of paid leave (before and after birth).
- Paternity leave: 10 days after birth (longer for premature or multiple births).
- Sick leave: Employees receive paid sick leave with a medical certificate.
What is the minimum wage and what are the mandatory bonuses?
Understanding the minimum wage and mandatory bonuses is crucial for both employees and employers. In Peru, workers are entitled to a legally established minimum wage, along with additional financial benefits designed to support their economic stability. Below are the key details:
-
Current minimum wage: PEN 1,025 per month (subject to periodic revisions).
-
Mandatory bonuses:
- 13th and 14th-month salary (Gratificación) → Paid in July and December.
- Compensation for Length of Service (CTS) → Equal to 1.16 times the monthly salary per year, deposited in May and November.
-
Social Security: Employees contribute 9% of their salary to EsSalud (healthcare system).
-
Wage Growth and Formalization: Research shows that between 2002 and 2012, structural changes in Peru contributed to increased formal employment, but a significant portion of the workforce remains informal due to high labor costs [Chacaltana, 2016].
From my experience advising businesses and workers, I have seen how uncertainties about labor regulations in Peru can create confusion. The following section addresses some of the most frequently asked questions with clear and concise answers about the topic.
Frequently Asked Questions about "Labor Peru Laws"
Navigating Peru’s labor laws can be complex, and many common concerns arise among employees and employers. This section addresses frequently asked questions, providing clear and concise answers to key aspects of labor regulations.
Can children legally work in Peru?
Yes, children can work in Peru under specific regulations. Those aged 12 to 14 may work up to 4 hours per day, while those aged 15 to 17 can work up to 6 hours per day. However, their employment must not interfere with their education, and authorization from the Ministry of Labor is required. Certain types of hazardous or physically demanding work are strictly prohibited for minors.
Are fixed-term contracts allowed?
Yes, fixed-term contracts are permitted in Peru, but they must be justified based on specific legal grounds, such as project-based work, temporary demand increases, or seasonal employment. The maximum duration for fixed-term contracts is five years, after which the contract must either become permanent or be terminated. Employers who fail to justify a fixed-term contract may face legal consequences.
Do remote workers have the same rights?
Yes, remote workers have the same labor rights as on-site employees. They are entitled to fair wages, overtime pay, rest periods, and social security benefits. Employers must also provide the necessary tools and resources for remote employees to perform their tasks efficiently. Any violation of these rights can be reported to labor authorities.
Are part-time jobs legally regulated in Peru?
Yes, part-time employment is recognized and regulated by Peruvian labor law. Part-time employees work fewer hours than full-time workers but still receive proportional benefits, including social security contributions and paid leave. However, they are not entitled to certain full-time benefits, such as Compensation for Length of Service (CTS) or full bonuses.
What is the notice period in Peru?
In Peru, employees and employers must comply with a notice period before terminating an employment contract. The length of this period depends on the worker’s tenure and the type of contract. Generally, the minimum notice period is 30 days, but specific agreements or regulations may establish different terms.
What are the non-working days in Peru?
In addition to public holidays, there are specific non-working days that apply to certain industries or sectors. These days may be designated by government decree or collective agreements. Employees working on such days may be entitled to additional compensation or compensatory rest days.
What are the labor standards in Peru?
Peru’s labor standards include regulations on working conditions, job security, and worker protections. These laws ensure safe work environments, fair wages, and compliance with labor rights, preventing workplace discrimination and exploitation.
Conclusion
Throughout my career, I have witnessed the evolution of labor laws in Peru and their impact on both employees and employers. These regulations, although sometimes complex, aim to balance rights and obligations in the workplace. Understanding them not only helps comply with the law but also improves the employer-employee relationship and fosters a fair and productive work environment.
You can contact me (Luis Fuentes) and Estudio Fuentes if you want to speak with an expert on this topic.
We´re Peru’s leading business magazine, bringing you the latest and most important news.
If you’re interested in doing business in Peru, you might also find the following helpful:
