Peru’s stable political environment and solid economy makes it a good prospect for doing business in Latin America. But, depending on the nature of your engagement with the South American country, hiring staff through a professional employer organization in Peru could be your ideal option.

Because, when you hire through a professional employer organization in Peru — which can also be referrered to as a PEO — you avoid the need to incorporate a local entity, enjoy guaranteed compliance from the provider, and are able to get to work in only the time it takes to find the staff you need. As part of a compliance guarantee, your provider will take care of a range of legal and administrative concerns, including managing the salaries of staff, and as such is often referred to as a PEO payroll company.
Peru has emerged as an increasingly popular destination for foreign direct investment (FDI) over recent years, with FDI as a percentage of GDP more than doubling from 1.57% in 2000 to 3.89% in 2019.
While Peru is perhaps best known as an investment destination in terms of opportunities available in the mining sector, with the country sat on large reserves of copper and gold and investment in the sector hitting $5.24 billion in 2021 (all figures in USD).
SEE ALSO: Find a Good Corporate Attorney in Peru
Agriculture and fishing are also major industries, generating a significant portion of GDP and attracting foreign investment, with fruits, nuts, soy, and seafood among Peru’s most important exports.
Peru is also a major trade hub, with the port of Callao having one of the highest container throughputs in Latin America, and being just one of three major ports serving the Pacific Ocean. In 2021, Peruvian exports hit new records, with agro-export companies among the fastest growing.
Peru’s trade credentials are boosted by its status as a founding member of the Pacific Alliance — an economic association including Chile, Colombia, and Mexico, and to which Ecuador has formally applied to join.
In late 2021, the Pacific Alliance demonstrated its long-rumoured interest in expanding into Asia-Pacific when Singapore was inaugurated as an associate member. Australia, Canada, New Zealand, and South Korea have been named as potential candidates for similar status in the future.
Alongside its neighbours Bolivia, Colombia, and Ecuador, Peru is also a founding member of the Andean Community of Nations (CAN), a more than half century old regional integration initiative, which has continued to implement a range of integration measures in recent years.
What to expect from a professional employer organization in Peru
A professional employer organization in Peru will seek, hire, and onboard staff on the behalf of a client, as well as managing their payroll. That means, depending on the profile of the staff being sought, the client can have local workers in the space of a few weeks or even days.

While they will officially be employees of the professional employer organization, they will report directly to the client, who will retain full control over their schedules and workloads. As such, they will effectively act as employees of the client.
In providing PEO payroll company services in Peru, the provider will oversee the salaries and other administrative matters, generally charging the client on a per employee basis.
That fee will often work out to be less than the cost of going through company formation and subsequent liquidation, while also comes with the convenience of having a complex administrative and compliance matter covered by a third-party provider with proven expertise.
That in turn means that when you partner up with a professional employer organization in Peru, you enjoy the benefit of guaranteed compliance with all releavent aspects of commercial, employment, and labor law.
REAL-LIFE EXAMPLE: A US company is looking to hire a bilingual software developer. They decide that a Peruvian employee may be a good option (having a high level of education, often being bilingual and costing less than a US employee). However, the US company does not want to go through the administrative hassle of forming a local company in Peru. Instead, they work with an Peruvian PEO service provider who can ‘hire’ the individual, and comply with all local employment requirements. While the employee is technically employed by the PEO, they will be directed by the US company.
Compliance issues handled by a PEO payroll company in Peru
Your professional employer organization in Peru will implement the following statutory obligations related to maintaining employees:
- Working Hours: The standard workweek is eight hours per day, with a maximum of 48 hours per week.
- Bonuses: In Peru, employees are entitled to a ’13th’ and ’14th’ salary, bonuses each equal to a month of salary and usually distributed in July and December.
- Vacation leave: Employees are entitled to 30 days of paid vacation leave per calendar year, of which 15 must be taken as holiday and the rest can be cashed out.
- Sick Leave: Employers are obliged to pay the first 20 days of doctor-authorized sick leave, after which it is covered by the public health provider Essalud.
- Parenthood leave: In Peru, labor law allows for paid maternity leave totaliung 98 days, made up of 49 days before the due date and 49 days after. In the case of paternity leave, new fathers are entitled to 10 consecutive days of paid leave.
- Terminations: In the event an employee has their contract terminated, unless for misconduct, they will be entitled to severence payments on top of any outstnading salary, which the PEO payroll company in Peru will calculate and oversee the payment of.
Biz Latin Hub can be your professional employer organization in Peru
At Biz Latin Hub, we provide integrated market entry and back-office services throughout Latin America and the Caribbean, with teams in 17 major cities throughout the region and trusted partners in the markets where we are not present. That makes us an ideal partner to support multi-jurisdiction market entries and cross-border operations.
Our portfolio includes accounting & taxation, company formation, due diligence, hiring & PEO, and corporate legal services. If you are looking for a PEO payroll company in Peru, we can help you.
Contact us today to find out more about how we can assist you.
If you found this article on hiring through a professional employer orgaization in Peru of interest, you may want to check out the rest of our coverage of this South American country. Or read about our team and expert authors.