How to Hire in Peru? A comprehensive Guide

Imagine a land rich in resources, buzzing with young talent, and boasting a strategic location for nearshoring. That's Peru, a goldmine waiting to be tapped by American investors with an eye for growth. But before you dive in, building a stellar team is crucial. This comprehensive guide provides the knowledge you need to successfully hire in Peru, ensuring compliance and a smooth experience for both you and your new employees.

Why Invest in Peruvian Talent?

Cost-Effective Excellence: Peru boasts a highly-skilled workforce with competitive salaries compared to the US. You'll access top talent without breaking the bank, giving you a significant edge.
The Language Advantage: Many Peruvians are bilingual in English and Spanish, fostering seamless communication and cultural understanding within your team. Perfect for companies eyeing the Latin American market.
Time Zone Synergy: Peru's time zones align nicely. This allows for real-time collaboration, ensuring your American team and Peruvian recruits are always on the same page.
A Tech Hub on the Rise: Peru is a hotbed for tech talent. From adept software developers to ingenious IT specialists, you'll find the minds you need to propel your tech ventures forward.

The Starting Point: Establishing Your Presence

There are two primary ways to hire employees in Peru:

1. Setting Up a Legal Entity: This involves registering a branch office or subsidiary within Peru. This approach grants you complete control over your operations but requires navigating complex legal and bureaucratic processes.

2. Partnering with an Employer of Record (EOR): Companies like Ongresso act as the legal employer of your workers in Peru. They handle payroll, taxes, benefits administration, and ensure compliance with local labor laws. This option offers a faster and more streamlined approach, especially for businesses new to the Peruvian market.

Understanding the Sysyem: Taxes, Pay and Benefits

Employer Taxes: Be prepared to factor in employer taxes and social security contributions, which average around 9% of an employee's salary in Peru. You'll also contribute to public health insurance and potentially support employee pension funds. Workers file their own annual tax returns by March 31st.
Employee Benefits: Peruvian law mandates statutory thirteenth and fourteenth-month salaries for employees after a year. Additionally, employees can choose extra pay in lieu of 15 days of vacation. Factor these costs into your hiring strategy.
Salary & Payment: Peruvian law mandates paying employees in soles through a Peruvian bank account designated by the government.

The Hiring Process: Finding the Right Talent

Once you've established your presence with either a legal entity or an Employer of Record (EOR), it's time to start attracting top talent. Popular options include:

Job Boards: Utilize Peruvian job boards like Bumeran, Computrabajo, or Indeed Peru to reach a wide pool of potential candidates.
Recruiting Agencies: Partner with local agencies specializing in your industry to leverage their expertise and networks.
Professional Networking: Attend industry events or connect with Peruvian professionals on LinkedIn to discover hidden gems.

Work Permits & Visas: Ensuring Legal Employment

All foreign workers in Peru require a visa, regardless of their nationality. Here's a breakdown of the most common types:

Work Visa: Necessary for employees who plan to stay in Peru long-term.
Temporary Visa: Suitable for workers who expect to stay for more than 183 days but not permanently.
Tourist Visa: Not for work purposes. Visitors cannot convert tourist visas to work visas.

The employer initiates the visa process with the Peruvian Immigration Office. Once approved, the employee can apply for the appropriate visa at a consulate or the Peruvian Immigration Office.

Beyond Legal Basics: Building Your Team for Success

While the EOR takes care of the legalities, you'll still play a vital role in building your Peruvian team. Here's how to go beyond the basics and foster a thriving team environment:

Become a Magnet for Talent: Craft compelling job descriptions that showcase your company culture and the exciting opportunities you offer. Leverage online platforms and professional networks like LinkedIn and Indeed to attract the best and brightest. Consider partnering with Peruvian universities or tech schools to tap into fresh talent.
Invest in Onboarding: A smooth onboarding process sets the stage for success. Introduce your new recruits to your company culture, values, and team members. Equip them with the tools and resources they need to thrive. This includes providing training on your specific software, processes, and company terminology, even if they're bilingual. Don't forget to factor in cultural nuances and bridge any potential gaps in communication styles.
Nurture and Develop: Investing in your Peruvian team's professional development shows your commitment to their growth. Offer training programs and opportunities to learn new skills, fostering loyalty and boosting their contributions. Consider sponsoring their attendance at relevant conferences or workshops to keep them at the forefront of their field.

The ID Card Process: Equipping Your Team for Work

One crucial aspect of onboarding your Peruvian employees is ensuring they have the proper identification. Here's a breakdown of the two main ID cards needed for employment:

Documento Nacional de Identidad (DNI): This is the national ID card for Peruvian citizens. It's required for most official purposes, including employment. The process for obtaining a DNI typically involves visiting a RENIEC (Registro Nacional de Identificación y Estado Civil) office with the necessary documents, such as a birth certificate and proof of address. An EOR can often assist with this process.
Carnet de Extranjería (Foreigner's Identity Card): This card is required for foreign residents working in Peru. It serves as proof of legal residency and work authorization. The application process involves submitting documents like your passport, a work visa, and proof of address to the Migraciones (General Directorate of Immigration and Naturalization) office. Again, your EOR can be a valuable resource to navigate this process.

Hiring Made Easy: The EOR Advantage

Navigating Peruvian labor laws can be a labyrinth. That's where Employer of Record (EOR) services come in. Think of them as your local partner, handling all the legal legwork so you can focus on building your dream team.

Skip the Setup Hassle: An EOR already has a legal entity established in Peru, eliminating the need for you to set one up yourself. This saves you time and money, allowing you to hit the ground running.
Compliance Confidence: EORs are experts in Peruvian employment law. They'll handle worker visas, contracts, payroll, and other HR tasks, ensuring you're always compliant and avoiding any legal headaches.
Benefits that Impress: Competitive benefits are key to attracting and retaining top talent. Some EORs offer comprehensive packages including health insurance, retirement plans, and vacation time, making your offer stand out.

The Advantages of Partnering with Ongresso in Peru

Reduced Time to Market: Skip the lengthy process of establishing a legal entity in Peru. Ongresso handles all the legalities, allowing you to focus on finding and onboarding talent quickly.
Compliance Expertise: Our team of experts stays up-to-date on ever-changing Peruvian labor laws, ensuring your company remains compliant and avoids costly penalties.
Simplified Payroll & Tax Administration: Say goodbye to complex payroll calculations and tax filings in Peru. Ongresso manages all aspects of payroll processing, tax withholding, and social security contributions.
Reduced Risk & Liability: As the legal employer of record, Ongresso takes on the legal and financial risks associated with employment in Peru, protecting your business.
Enhanced Employer Brand: Attract top Peruvian talent by offering competitive compensation and benefits packages without the administrative burden. Ongresso helps you design a benefits plan that complies with local regulations.
Local Support & Expertise: Our team in Peru provides on-the-ground support for your employees, addressing any questions or concerns they might have.
Scalability & Flexibility: Whether you're hiring a single employee or a large team, Ongresso scales with your needs, allowing you to easily adjust your workforce as your business grows in Peru.
Cost-Effectiveness: While the initial setup cost of establishing a legal entity can be high, partnering with Ongresso is often a more cost-efficient solution, especially for businesses new to the Peruvian market. You only pay for the services you need, eliminating the need for additional staff or administrative resources.

Ongresso: Business Beyond Borders in Peru

By partnering with Ongresso as your Employer of Record (EOR) in Peru, you can gain a competitive edge in the Peruvian market, attracting and retaining top talent while ensuring compliance with local regulations. Our comprehensive services free you to focus on what matters most – growing your business in Peru.

Contact Ongresso Today!

Let our team of experts guide you through the Peruvian hiring process. We'll answer your questions, assess your needs, and create a customized solution that empowers you to achieve your goals in Peru.