How to Hire in Peru in 2025

Understanding Peru’s Thriving Talent Market

When US companies look to expand their teams into Latin America, a few usual suspects often come to mind. But there’s a growing buzz around a market that’s becoming a strategic advantage for those in the know: Peru. The talent pool here isn’t just growing; it’s maturing, offering a rich source of skilled, ambitious professionals eager to work with international firms. This isn’t about finding cheap labor—it’s about discovering high-value talent.

The momentum is real. In the first quarter of 2025, Peru’s employed population reached 17,374,000 people, a 1.3% increase from the previous year. This growth, largely driven by urban areas which saw a 1.7% rise in employment, points to a dynamic and expanding workforce. For companies preparing to hire in peru, this signals a healthy, active job market filled with potential candidates. You can explore the official report for more details on these employment trends.

To give you a clearer picture of what the workforce looks like on the ground, here’s a breakdown of the current employment landscape.

Peru Employment Demographics Breakdown

Statistical overview of Peru’s current employment landscape by demographics and location

This table shows that while national growth is healthy, the real action is happening in urban centers like Lima, particularly among the core adult demographic. This is where you’ll find the experienced professionals ready for their next big role.

The Epicenters of Peruvian Talent

While you can find talent throughout the country, a few key cities have become major hubs for business and technology. Lima, the capital, is the undeniable economic engine. It’s home to the headquarters of most major companies and has the highest concentration of experienced professionals in fields like finance, marketing, and software development.

However, don’t just focus on Lima. Arequipa, often called the “White City,” is becoming a significant center for tech and engineering talent, thanks to its strong local universities. Likewise, Trujillo in the north is building a reputation for skilled professionals in agribusiness and manufacturing, with a growing service sector. Understanding these regional strengths is a key part of effective recruitment in peru, as it lets you target your search with precision.

What to Expect from the Workforce

The Peruvian workforce is notably young and well-educated. A large portion of the population is under 35, bringing fresh perspectives and a natural comfort with technology. Many professionals hold degrees from reputable national universities and are increasingly pursuing specialized certifications to compete on a global scale.

English proficiency is another critical factor. While not universal, the number of bilingual professionals, especially in tech and business roles, is climbing. Ambitious Peruvians know that English is a gateway to better opportunities with international companies, and they invest in developing this skill. This makes direct collaboration with your US-based teams much more straightforward. When you decide to hire in peru, you can realistically build a pipeline of candidates who have the communication skills needed for a remote setup.

Here are a few more reasons why this market is so appealing:

• Cost-Effectiveness: Salaries in Peru are competitive, which means you can build a top-tier team for a fraction of what it would cost in the US, without sacrificing quality.
• Time Zone Alignment: Peru shares a similar time zone with the US. This simple fact makes collaboration and communication incredibly easy, avoiding the headaches of working across wildly different schedules.
• Cultural Affinity: Peruvian professionals generally have a strong cultural familiarity with the US, which helps with smoother integration and teamwork within your existing company culture.
• Strong Work Ethic: The workforce is known for its dedication and loyalty. Many employees are looking for a company they can grow with for the long term.

Mastering Peru’s Employment Laws Without The Headaches

Let’s be honest—the thought of diving into another country’s employment laws can feel a bit overwhelming. But here’s some good news: when you hire in Peru, the legal side of things is more straightforward than you might expect, especially once you know what to look for. It’s less about memorizing dense legal texts and more about understanding a few key principles that differ from the US. Getting these right from the start will save you a ton of time and prevent potential legal issues later.

The first big choice you’ll make is whether to bring on your talent as direct employees or as independent contractors. While the contractor route seems simpler on the surface, it carries some real risks. Misclassifying an employee as a contractor just to sidestep benefits is a serious compliance problem in Peru. If a worker has set hours, takes direct supervision, and is a core part of your business, Peruvian authorities will almost certainly classify them as an employee, no matter what the contract says.

I saw this happen with a US tech startup that hired several Peruvian developers as “consultants.” A year later, one of them filed a complaint, and the government ruled they were actually full-time employees. The company got hit with back pay for all mandatory benefits, plus some hefty fines. The safer, smarter strategy for core team members is almost always direct employment. It builds loyalty and keeps you fully compliant. If you want to dig deeper, there are some great resources that explain the legal requirements for hiring remote workers and help you avoid common mistakes.

Understanding Key Employment Contracts and Obligations

Once you’ve decided to hire someone as an employee, you’ll need a solid employment contract. In Peru, you’ll mainly deal with two types:

• Indefinite-Term Contracts: This is the default agreement. It has a start date but no end date, giving the employee job security. While you can technically have a verbal agreement, a written contract in Spanish is always the best way to go for total clarity.
• Fixed-Term Contracts: These are for specific projects or temporary roles and have a clear end date. They must be in writing and can’t go on for more than five years. After that point, the contract automatically becomes an indefinite one.

The official government portal for labor and employment promotion is your best friend here. It’s the main source for all legal information.

This screenshot shows the government’s effort to provide clear, easy-to-find information, which is a fantastic resource for employers. The main thing to remember is that Peruvian law really protects employee rights, so staying informed through official channels is a critical part of your strategy.

Mandatory Benefits That Surprise US Employers

This is the area where many American companies get tripped up. The benefits package in Peru is generous and not up for negotiation. Missing even one of these can cause big problems.

Here are the main ones you need to budget for:

• Gratificaciones (Bonuses): Employees get two extra months’ salary each year. One is paid in July for Peru’s Independence Day, and the other comes in December for Christmas. This is a mandatory, full-month salary bonus, not just a small holiday gift.
• Compensation for Time of Service (CTS): Think of this as a severance fund that builds up over time. You have to deposit about one month’s salary per year of service into a special bank account for the employee. These deposits happen twice a year, in May and November.
• Vacation: After their first year, employees are entitled to 30 calendar days of paid vacation annually. This is quite a bit more than the typical two weeks in the US.
• Health Insurance (EsSalud): As the employer, you must contribute 9% of an employee’s salary to the public health system, EsSalud. This is entirely on you and isn’t taken from the employee’s paycheck.

Getting a handle on these legal requirements isn’t about becoming a Peruvian lawyer overnight. It’s about knowing the key differences, planning for them in your budget, and setting up your hiring process to be compliant from day one. Working with a local expert or an Employer of Record (EOR) service can make this whole process smooth, letting you focus on finding incredible talent instead of getting tangled in legal details.

Payroll Setup That Actually Makes Sense

Once you’ve sorted out the legal side of things, it’s time to tackle payroll. This is where the numbers get real, and frankly, where many US companies get surprised by the total cost to hire in peru. It’s not just about the base salary; it’s a whole package of mandatory contributions and unique benefits. Getting this right from the start means you can budget accurately and make offers that are both competitive and fully compliant.

The biggest mistake we see is companies thinking the salary on the offer letter is the final number. In reality, mandatory extras like health insurance, bonuses, and severance funds can add 30-45% on top of the base salary. That’s a significant chunk of change that needs to be in your budget from day one to avoid any nasty surprises down the road.

The infographic below gives you a glimpse of the initial costs you can expect as you start your hiring journey.

Understanding Peruvian Payroll Nuances

To truly get a handle on your costs, you need to understand the components that make up an employee’s total compensation. It’s more than just a monthly paycheck.

Let’s break down the mandatory elements of Peruvian payroll. The table below details what you’re required to pay, how much, and how often.

This breakdown shows that budgeting for 14 monthly salaries per year is the real baseline, not 12. Factoring in EsSalud and CTS on top of that gives you a much more realistic picture of your actual employment costs in Peru.

Employer of Record (EOR) vs. Setting Up a Local Entity

So, how do you manage all this? You have two main paths: setting up your own local company or partnering with an Employer of Record (EOR).

For most US companies, especially those hiring their first few employees in Peru, an EOR is the most practical solution. An EOR, like Deel or Papaya Global, acts as the legal employer for your team on paper. They handle all the tricky stuff—contracts, payroll, taxes, benefits, and compliance—for a monthly fee per employee. This lets you onboard talent in days, not months. You get to focus on growing your business, not on becoming an expert in Peruvian labor law.

The alternative is establishing a local legal entity. This gives you complete control but comes with a mountain of administrative work, high upfront costs, and a much longer timeline (think 3-6 months, minimum). This path really only makes sense if you’re planning a large-scale operation with dozens of employees and a physical office.

For almost everyone else starting out, the speed and peace of mind an EOR provides is the way to go. It ensures your team is paid correctly and on time, keeping you 100% compliant from the very first day.

Finding Great Candidates Where They Actually Are

So, you’ve decided to hire in Peru. Your first thought might be to throw a job posting up on LinkedIn and see what happens. While that’s a piece of the puzzle, relying only on US-centric hiring habits means you’ll probably miss out on some incredible people. To connect with top-tier Peruvian candidates, you need to show up where they are and understand what they’re looking for in a role.

While LinkedIn is a global standard for professionals, its function in Peru is a bit nuanced. It’s definitely a key platform, particularly for senior-level executives and tech talent. However, it’s not the first place many mid-career professionals go when they’re actively job hunting. Think of it as a tool for building a professional brand, but not always the go-to for the actual search. To succeed, you have to meet them on their home turf.

Tapping into Local Job Boards and Networks

To get your job openings in front of the right candidates, you need to go local. Platforms like Bumeran and Computrabajo are household names in Peru, often serving as the primary destination for job seekers across nearly every industry. Posting on these sites shows you’re genuinely invested in hiring locally, not just exploring options.

For roles that require specialized skills, particularly in the tech world, don’t overlook the influence of professional communities. You can find incredible candidates in niche groups on platforms like GitHub, at local developer meetups (both in-person and virtual), and within university alumni networks. This hands-on approach requires more legwork than a simple job post, but the quality of candidates you’ll find is well worth the effort.

It’s a big talent pool you’re diving into. The World Bank estimates Peru’s labor force at approximately 18,917,570 people in 2024. This number includes a wide range of professionals, from highly experienced leaders to bright, ambitious individuals just starting their careers. By diversifying where you look for talent, you cast a wider, more effective net. You can dive deeper into the data about Peru’s labor force on Trading Economics.

Crafting a Job Description That Resonates

Taking a job description from a US posting and simply running it through a translator is a recipe for failure. To truly capture the attention of Peruvian professionals, your job ad needs to speak their cultural language, not just Spanish. Here’s what makes a description compelling:

• Highlight Stability and Growth: Professionals in Peru place a high value on long-term career paths. Make sure to talk about opportunities for training, professional development, and how someone can grow with your company. This is often more persuasive than flashy, temporary perks.
• Get Specific About Benefits: Don’t just list “competitive benefits.” Explicitly mention that you provide all legally required benefits, such as gratificaciones (mandatory bonuses) and CTS (severance fund). This demonstrates that you’re a knowledgeable and trustworthy employer right from the start.
• Showcase Your Company Culture: The opportunity to work for a US company is a significant advantage. Describe your collaborative environment, the chance to be part of international teams, and the opportunity to use and improve English skills professionally. These are powerful selling points.

Ultimately, your success when you hire in peru will come from mixing broad outreach with targeted, culturally informed strategies. By using major local job boards, networking directly with professionals, and writing a job description that truly connects, you’ll find the talented people who can help your business thrive.

Building Genuine Remote Relationships Across Cultures

When you bring Peruvian team members on board, the real work begins long after the welcome email is sent and payroll is sorted. This is where cultural integration comes in, and it’s about creating an environment where your new colleagues feel genuinely valued, understood, and ready to contribute their best work. When you hire in Peru, you’re not just increasing your headcount; you’re building a bridge between two cultures, and that requires a thoughtful approach.

One of the first cultural nuances US managers often encounter is a different perspective on hierarchy. In Peruvian professional settings, there’s a level of respect for authority that might feel more formal than what you see in a typical American startup. This isn’t a sign that your team members lack initiative; it’s a display of respect. They might wait for you to give specific instructions rather than jumping ahead on a project. As a manager, your role is to make them feel secure enough to take ownership.

A simple yet effective way to encourage this is by clearly defining their responsibilities and openly empowering them to make decisions. For instance, instead of asking, “What should we do?”, try saying, “As our project lead, I trust your judgment on how to handle tasks A and B. Please move forward and just keep me updated on your progress.” This small change in phrasing can empower your team significantly.

Communication, Feedback, and Celebrations

Getting a handle on different communication styles is another critical piece of the integration puzzle. Peruvian professionals often communicate more indirectly and place a high value on relationships. Preserving team harmony is a priority, which might mean they hesitate to offer direct, critical feedback or openly disagree during a group meeting. This is a common source of misunderstanding, where a US manager might see a lack of engagement instead of a cultural norm.

To get more candid feedback, one-on-one meetings are your best bet. A private, trusting setting encourages more open conversation. When you’re giving feedback, be sure to frame it constructively and tie it back to shared goals.

Also, don’t overlook the importance of recognizing local culture. Showing respect for national holidays is a small gesture with a big impact. You don’t need to be an expert, but acknowledging major dates like Fiestas Patrias (Independence Day) in July shows you’re paying attention. A simple “Happy Fiestas Patrias!” message goes a long way in building rapport.

Creating an Inclusive and Productive Environment

Building an inclusive workspace also involves thinking about logistics. The time zone alignment between the US and Peru is a huge plus, but it’s not always a perfect overlap. Try to avoid scheduling meetings at the very beginning of your day or the very end of theirs. A bit of flexibility demonstrates respect for their work-life balance.

Ultimately, remember you’ve hired skilled professionals who bring fresh perspectives to the table. These individuals are part of a stable and expanding labor market. In fact, as of April 2025, Peru’s employment rate was a solid 94.1%, pointing to a resilient and active workforce. You can check out more about Peru’s impressive employment recovery on Trading Economics.

Here are a few practical ideas to help foster a strong, connected team:

• Set up virtual “coffee chats” between your US and Peruvian employees to build personal connections that go beyond work tasks.
• Start a buddy system by pairing a new Peruvian hire with a US-based team member who can help them learn the ropes of company culture.
• Celebrate wins publicly, and make it a point to highlight the specific contributions of your Peruvian colleagues.

By putting effort into these cultural integration practices, you create more than just a transactional relationship. You build a cohesive, global team where everyone feels they truly belong.

Growing Your Peru Team For Long-Term Success

So, you’ve brought some amazing talent onto your team. That’s a huge win, but the journey doesn’t stop at recruitment. Now, it’s all about retention. Keeping your great people engaged, productive, and committed is the real challenge, especially when you hire in Peru, a market where top professionals are in high demand. This isn’t about throwing a few perks their way; it’s about building a supportive environment where they can thrive long-term.

Think about career growth from the moment they join. Talented Peruvian professionals are just as ambitious as anyone else. They need to see a future with your company. If they feel like they’ve hit a ceiling, they’ll start looking for the next step elsewhere. You don’t need a stuffy, old-school corporate ladder, but you do need to have open, regular chats about their career goals and give them chances to learn new skills, take on bigger projects, or even lead initiatives.

Managing Performance And Growth

Managing performance with a remote, cross-cultural team requires a thoughtful approach. While Peruvian work culture can sometimes feel more formal, consistent and respectful feedback is highly appreciated. Instead of relying on a single, stressful annual review, try setting up quarterly check-ins. These should be real conversations—a two-way street—where you discuss not just their performance metrics but also their professional development and what they hope to achieve in their career.

Let’s talk about compensation. You’re not just competing with local companies; you’re up against a global talent market. Your initial salary offer might have been competitive, but you need a plan for raises and promotions. A classic mistake is letting salaries stagnate. A developer who has been with you for two years is way more valuable than when they started. If their pay doesn’t reflect their growth in skills and market value, you can bet a competitor will notice.

Here are a few practical ideas for managing your team’s growth:

• Define Clear Promotion Tiers: Lay out what it takes to get from a junior to a mid-level or senior position. This transparency empowers employees by showing them exactly what they need to work on to move up.
• Invest in Their Skills: Offer them access to online courses, industry certifications, or even virtual professional conferences. It’s a powerful signal that you’re invested in their future, not just the work they’re doing today.
• Handle Issues Proactively: Don’t let small disagreements or misunderstandings turn into big problems. Set up clear communication channels for feedback and problem-solving. A US manager might need to be more direct in asking for feedback than they’re used to, as team members might be hesitant to speak up on their own.

Scaling Up: Local Presence Vs. Fully Remote

As your team expands, you’ll hit a fork in the road: do you stay fully remote, or is it time to set up a local physical presence? For most companies, especially those with fewer than 10-15 employees in Peru, sticking with an Employer of Record (EOR) service is the smartest move. It keeps your administrative overhead low and lets you focus on what really matters—managing your people, not wrestling with local bureaucracy.

However, once you grow beyond that, a small local office or even a dedicated space in a co-working facility can do wonders for team morale and collaboration. It creates a central hub for team-building, onboarding new hires, and just getting together socially. This kind of move shows a real commitment to your team and the region, which can be a massive boost for retention. The right choice really comes down to your company’s growth plans and what you envision for your future in Peru.

Your Practical Roadmap To Hiring Success

Let’s break down everything we’ve covered into a practical plan you can put into action. Making the decision to hire in Peru is a big move, but it doesn’t have to be overwhelming. Success comes from focusing on the right things in the right order. This roadmap will guide you from the initial “what-if” stage all the way to welcoming your first Peruvian team member.

Phase 1: Planning and Budgeting (Weeks 1-2)

Before you even think about posting a job ad, it’s time to get your internal house in order. This first phase is all about getting on the same page with your leadership team and understanding the true financial scope of hiring in Peru.

First, go beyond a basic job description. What skills are absolute must-haves, and what are just nice-to-haves? Think about the personality traits that will fit right into your remote culture. Being crystal clear on this now saves a lot of headaches later.

Next, build a realistic budget. Use the salary information we’ve discussed as a starting point. Take a competitive base salary and add at least 40% to cover mandatory Peruvian benefits like gratificaciones (bonuses), CTS (severance fund), and EsSalud (health insurance). When you talk to your leadership team, present this total cost. For instance, a monthly salary of PEN 7,000 isn’t just an PEN 84,000 annual expense; it’s actually closer to PEN 118,000 after all obligations are met.

Finally, decide on your employment model. Are you going with an Employer of Record (EOR) or setting up your own local entity? For most companies hiring their first few people (say, under 10), an EOR is the quickest and most straightforward option. It’s a good idea to start getting quotes from providers at this stage.

Phase 2: Recruitment and Selection (Weeks 3-6)

With your plan in place, you’re ready to find your perfect candidate. This is where your careful preparation really starts to pay off.

Your first move is to localize your job description. This means translating it into Spanish and tweaking the language to resonate with Peruvian professionals. Highlight things they value, such as stability, professional growth, and comprehensive benefits. Don’t just post on LinkedIn; get your opening on popular local job boards like Bumeran and Computrabajo.

During interviews, be mindful of cultural differences. Candidates might appear more formal or reserved than what you’re used to in the US. Ask open-ended questions to encourage them to share more about their experience and personality. Be prepared to sell them on your company, too—explain your culture and what makes it a special place to work.

Once you’ve found a strong candidate, it’s time for due diligence. Check their references and, with their permission, run background checks just as you would for any important hire. Building a relationship based on trust starts from day one.

Phase 3: Onboarding and Integration (Weeks 7-8)

You’ve made an offer and it’s been accepted—fantastic! Now, the real work begins: ensuring your new team member has a welcoming and productive start.

• Run a Compliance Checklist: Team up with your EOR or legal counsel to make sure the employment contract is 100% compliant with Peruvian law. All necessary registrations with government bodies should be completed before their first day.
• Set Them Up for Success: If you’re providing equipment, ship it well ahead of time to avoid any delays. Put together an onboarding schedule that includes meet-and-greets with key colleagues, sessions about your company culture, and clear, achievable goals for their first week.
• Assign a “Buddy”: This is a simple but powerful tip. Pair your new hire with a US-based teammate who can be their informal guide. This “buddy” can help them learn the unwritten rules of your company and build those all-important social connections.

Think of this roadmap not as a simple to-do list, but as a strategic framework for making your expansion into Peru a genuine success.

Ready to hire top talent in Peru without the administrative headaches? At Nearshore Business Solutions, we specialize in connecting US companies with vetted professionals across Latin America. Let us handle the complexities so you can focus on building your world-class team.