Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language

Spanish, Quechua


Peruvian sol (S/., PEN)

Payroll Frequency


Public Holidays

12 days

Employer Taxes


Cost of Living Index

$ (107 of 140, 2023)

Statutory Leave

30 days

Sick Leave

20 days

Maternity Leave

98 days

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

PEN 1,025 per month.

Overtime Pay

  • 125% of hourly rate for the first two hours
  • 135% of hourly rate for the following
  • Some workers in executive positions are not entitled to overtime

Additional Pay

Employees in Peru are entitled to thirteenth and fourteenth-month salaries, paid in July and December, respectively. 

Payroll Cycle

For all Borderless customers, payments will be made in equal monthly installments on or before the last working day of each calendar month.

Employer Costs & Taxes

  • 9%: Health Insurance

Employee Costs & Taxes

  • 12-13%: Pension Fund 
  • 2.25%: Health Insurance (voluntary)
  • 8%: Up to 5 UIT
  • 14%: From 5 UIT to 20 UIT
  • 17%: From 20 UIT to 35 UIT
  • 20%: From 35 UIT to 45 UIT
  • 30%: More than 45 UIT

1 Tax Unit (UIT) = 4,400 Peruvian soles (PEN)

Employment Information

Termination Process

Employees can only be terminated with just cause as per the Panamanian labour laws.

Workers that are let go without a fair justification are entitled to severance up to 12 months salary.

Notice period

Employers are required to give six to thirty days notice for employees to defend the cause for unfair termination.

Probation Period

There is no mandatory probation period.

The minimum probation period is 30 days and up to 90 days.

Severance Details

Severance is only entitled to employees where termination was deemed unfair.

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo