Peru is an attractive location for doing business in Latin America due to its stable political environment and strong economy. Hiring staff through a professional employer organization (PEO) in Peru could be the ideal option, depending on the nature of your engagement with the country.
When you hire through a PEO in Peru, you can avoid the need to incorporate a local entity, ensure compliance from the provider, and expedite the process of finding the staff you need. As part of compliance guarantee, the PEO provider will handle legal and administrative matters, including managing staff salaries. Peru has seen a significant increase in foreign direct investment (FDI) in recent years.
Various industries, including mining, agriculture, and fishing, have attracted significant foreign investment. Peru is also a major trade hub and is a founding member of the Pacific Alliance and the Andean Community of Nations. A PEO in Peru can seek, hire, and onboard staff on your behalf and manage their payroll. Employees will officially be employed by the PEO but will report directly to you.
The provider will oversee salaries and administrative matters, often charging the client on a per-employee basis. Partnering with a PEO in Peru ensures guaranteed compliance with commercial, employment, and labor law. Compliance matters such as working hours, bonuses, vacation leave, sick leave, parenthood leave, and terminations will be covered by the PEO in Peru. If you are considering hiring employees in Peru, you have the option to incorporate a legal entity in the country or hire through a third-party organization acting as the legal employer.
A standard Peruvian employment contract covers important details such as ID and address of the employer and employee, payment frequency, social benefits, work hours, and specific agreements. Mandatory employment benefits in Peru include social security contributions, compensation for time of service, vacation, family allowance, national holidays bonus, Christmas bonus, and profit sharing.
The total cost for an employer to hire an employee in Peru can vary based on the salary. Investing in a professional employer organization in Peru can facilitate market entry and back-office support across Latin America and the Caribbean, providing expertise in accounting, taxation, company formation, due diligence, hiring, and corporate legal services.
Biz Latin Hub offers integrated services and can act as your professional employer organization in Peru. Contact us today for further assistance.
