Hire your remote team in Peru

Only 499 EUR per employee per month

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Hiring a remote team in a country as Peru comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Peru. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

A remote team

1. Hire a remote team in Peru with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Peru, particularly if you don't have established local relationships. You can hire employees in Peru effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction

Rivermate is a global employment solutions company that provides Employer of Record services in Peru.

As an employer of record, we help you hire employees and run payroll services in Peru, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Peru.

It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.

If you wish to hire a remote team in Peru or individually hire remote employees in Peru, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.

Send us a message so we can talk about how Rivermate’s Employer of Record Peru services can best help your company!

3. Hire a remote team in Peru

Peru has one of the fastest-growing economies in Latin America. It is known to have the world's largest silver reserves, as well as the largest gold, lead, and zinc reserves in Latin America. The Peruvian coast is known for its marine resources as well as its agro-industrial export sector, which includes asparagus, blueberries, table grapes, avocados, organic bananas, and paprika. The Amazon basin is rich in oil and natural gas reserves, as well as forest resources. Currently, the service sector accounts for roughly 60% of the country's GDP. Telecommunications and financial services are the two most important branches of the service industry, accounting for nearly 40% of GDP. The Peruvian currency is the Nuevo Sol.

4. Cost of living in Peru

Peru's cost of living is $672, which is 1.39 times less expensive than the global average. Peru ranked 125th out of 197 countries in terms of cost of living and 75th in terms of quality of life.

In Peru, the average after-tax salary is $401, which is enough to cover living expenses for 0.6 months.

5. Cost of renting in Peru

Peru has one of the lowest cost of living rates in South America. A basic monthly fee of USD 2,000 or less can be paid in most areas outside of Lima. The cost of living in the capital is higher, as is the quality of life in remote areas. If you own your own home, USD 1,500 per month should suffice.

Although many services and amenities are priced similarly across the country, the cost of real estate in one city is very different. Renting or purchasing an apartment with sea views in an exclusive Lima neighborhood can be more expensive than renting or purchasing an apartment in Arequipa. It is difficult to find a modern three-bedroom house in Miraflores for less than USD 500,000. Large condominiums in upscale neighborhoods sell for more than USD 175,000. Prices are much lower in smaller urban areas and rural areas. Home prices in Arequipa and Trujillo are more likely to start around USD 200,000 or less.

- Family of four estimated monthly costs is 5,994.85 Sol without rent.

- A single person's estimated monthly costs are 1,710.96 Sol without rent.

6. Major industries in Peru

Peru is a South American country in western South America. It takes pride in being home to the world-famous Amazon rainforest and the Andes Mountains. Lima is Peru's capital city. The country's economy is one of the world's fastest growing. Peru's free trade agreement with the United States, which was signed in 2006, has resulted in further economic growth in the country. Peru's total GDP is currently $458.389 billion, with industries such as mining, manufacturing, fishing, and tourism driving the country's economy.

Peru is a global leader in the production of lead, copper, gold, and zinc, all of which are exported in large quantities. The mineral-rich areas of Peru are located within the Andes Mountains, where mining has been practiced for thousands of years. Mineral resources accounted for roughly half of Peruvian exports in 2000. Gold is the country's most important mining resource. The most important sources of Peruvian gold are two gold mines, Yanacocha and Pierina. They also generate the most revenue in comparison to Peru's other gold reserves. The country has gold and copper reserves worth millions of dollars. Peruvian silver mining dates back to pre-Columbian times. The mining industry faces a number of challenges, including fluctuations in market prices, which result in a decrease in revenue.

Peru's fishing industry supplies 10% of the world's fish consumption. The sector was government-owned until 1994. Following that, the Peruvian government transferred ownership of the fishing industry to the private sector. Peruvian fishing increased due to two factors: whaling in the nineteenth century and increased demand for bird dung (a byproduct of fish found in the small islands off the coast). In 2000, the country caught 10 billion tons of fish and exported $1 billion in fish products. However, Peruvian fish meal exports to Europe fell by 41% in 2001 as a result of a European Union ban on animal products sold in Europe in 2001. El Nino events pose a significant challenge to the fishing industry. During El Ninos years in Peru, the fishing industry contributes only 1% of the country's economy. Anchovies make up the majority of the fish caught and are used to make fish meals and products.

Tourism is another important industry in Peru. Since the 1990s, both the government and the private sector have worked to expand this industry. As a result, sector revenue increased from $90,000 in the 1990s to around US$1,000,000 in 2001. Between 2000 and 2005, approximately $300 million was spent on the construction of new hotels. Tourism developments have resulted in the creation of approximately one million jobs in Peru.

Ecotourism and heritage tourism have been the two tourism focus areas. Ecotourism is concerned with the preservation of natural environments, including wildlife and rare plant and animal species. Heritage tourism, on the other hand, refers to tourist attractions that highlight a country's history and culture. Peru's tourist attractions include the Andes Mountains, the Amazon Rain Forest, the Colca Canyon, and Machu Picchu. Many tourists visit Peru to see the famous Inca city of Machu Picchu. Furthermore, the Amazon rain forest attracts a large number of ecotourists. The pressure on archeological sites and rainforests, which leads to the destruction of tourist sites, is one of the challenges facing Peru's tourism sector.

Manufacturing accounts for 20% of the country's GDP. Peru used to export the majority of its raw materials. However, raw materials are now processed to add value before they are transported. The textile industry, which exports clothing to Europe and the United States, is an example of a value-added industry. In 2000, the textiles sector exported clothes worth US$ 700 million to the United States and Europe, making it the industry's most promising sector. Peru signed a treaty with the European Union that resulted in duty-free exports to its member countries. The pact's primary goal was to aid in the suppression of the drug trade.

7. Hiring cost in Peru

Hiring a new employee in Peru may appear to be inexpensive at first glance, as the minimum wage is low and the cost of living and doing business is low. Hiring, on the other hand, can have a few hidden costs, and you'll need to consider both the direct and indirect costs. The following are some of the costs associated with hiring a new employee:

- Position advertisements

- Hours spent reviewing applicants

- Payroll

- Taxes

- Salaries

- Benefits

- Bonuses

The insurance costs for hiring employees in Peru may vary depending on the industry. Because national health insurance is available, Peruvian employers are not always required to provide health insurance for their employees. However, as an added benefit, they frequently choose to provide supplementary insurance. If a company's business involves hazardous work, supplemental insurance becomes required.

8. Employment laws Peru

For all workers, the minimum legal wage is 750 Sol per month. The maximum number of working days per week is six, with either eight working hours or 48 hours in a week. A representative is entitled to at least 45 minutes of mid-day break.

- Extra time: The agreed-upon sum should be kept between the company and the employee. Nonetheless, a company cannot pay less than 25% of the representative's total compensation for the first two hours of additional time. Each additional hour after those two hours will incur an additional charge of at least 35%.

- Rest week by week: Every week, a worker should take a 24-hour break. Other businesses are usually closed on Sundays. However, a representative can work on Sunday and then take the day off on another day of the week. If the company goes to work seven days a week, one day's total compensation is made for each additional day worked.

- Night shift: The night shift officially begins at 10:00 p.m. and ends at 6:00 a.m. The worker's compensation for the night shift cannot only be their monthly, the lowest pay allowed by law; they are also eligible for a 35% surcharge.

- Preliminary period: They allow a 3-month preliminary period for regular staff. It is also extended for another three months. During this time, the worker is not entitled to any self-assertive excusal privileges. The company may grant certification or confidence in representatives being investigated between six months and a year for executive positions.

- Low-maintenance enterprise: Representatives with low maintenance work for less than four hours per day. Such a worker can work for up to 24 hours per week six days a week. Low maintenance representatives should work less than 20 hours per week due to the five working days.

- Framework of Benefits: Peruvian labor laws allow each employee to choose between the Public Annuity Plan and the Private Benefits Framework. The applicable rate for the two frameworks is 13%, which is typically paid by the business and deducted directly from the worker's compensation and saved directly to the plan.

9. Top skills Peru

The Peruvian employment market is becoming more and more diverse, and professional specializations are highly valued. Among the top requirements, Peru’s job market is looking for professionals with professional experience and technical specialization that can promote development in the organizations.

Employers also seek candidates who not only have the required technical or specialized skills, but also socio-emotional ‘soft skills.’ Employers are looking for dynamic professionals who can combine the ability to obtain and analyze sectorial information and have a committed professional vision to orient and develop both internal and external business relationships.

If you are an employer and are interested to hire in peru, these are the skills you would want to expect from employees in Peru:

- Teamwork

- Excellent Communication Skills

- Leadership

- Emotional Intelligence

- Resilience

- Pro-activity

- Responsibility

- IT knowledge

Most Peruvian employers also require more than an intermediate level of English proficiency, particularly in positions that have an impact on international customers or markets.

The Peruvian labor market is active, diverse, and expanding. There are opportunities for both national and international employees in this Latin American country.

10. Economic landscape in Peru

Peru's economy is one of the fastest growing in Latin America, and employers are hiring in virtually every industry. Job seekers in finance, banking, mining, and services, as well as technical experts looking for positions in agribusiness, engineering, mining, IT, and healthcare, will find plenty of opportunities. Lima, Peru's capital, provides the best and most diverse job opportunities, employing one-third of the country's workforce. and the highest-paying jobs will go to skilled professionals and workers with university degrees.

11. Market size in Peru

Given the demand for skilled professionals, a growing number of foreigners have found employment opportunities in Peru over the last decade. The number of foreigners who became permanent residents in Peru increased by 600% between 2000 and 2012. Peruvian law states that foreign employees may not make up more than 20% of the total workforce of a local company, regardless of whether it is owned by a national or foreign name. However, through specific bilateral agreements, Peru has excluded US, Spanish, and Argentine professionals from its nationality-based hiring requirements.

12. Minimum wage in Peru

The monthly minimum wage in Peru is set at 930 PEN.

13.Why choose Rivermate to hire your remote team in Peru?

Establishing an entity in Peru to hire a team takes time, money, and effort. The labor law in Peru has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Peru simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Peru give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Peru via our Employer of Record (EOR) / PEO solution.

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