Peru’s tech sector is on the rise, characterized by a dynamic ecosystem of startups and established tech firms. The country’s talent pool is growing rapidly, fueled by a network of top-tier universities and technical schools. Peru’s strategic location in Latin America, coupled with its stable economy and supportive business environment, presents compelling opportunities for tech companies seeking to expand or collaborate in the region.

Cost Advantage:

Percentage Range	70.1%
Compared to	45-65% less than US talent

Talent Market:

Pool Size	65,000+
Annual Growth Rate	9%

Work Week:

Weekly Hours

48 hours

English Level:

Rank	51 out of 113 countries.

Public and Local Holidays:

Total Days

26

Average Retention Rates:

Years

2-3 Years

Cultural Compatibility:

Compatibility

Strong

Global Brands that Hire in Peru

Companies

IBM, Teleperformance, NTT Data, BBVA, Telefónica

USA Working Hours Overlap:

Hours Overlap

Shares the same time zone as EST,  operating on GMT-5.

OVERVIEW: 

Capital	Lima
Currency	Peruvian Sol (PEN)
Languages	Spanish
Payroll Frequency	Monthly
GDP per Capita	$7004
Employer Tax	9%

An Overview of Peru’s Talent Market

Market Growth	Peru’s IT sector is on a quick growth trajectory. The ICT market in Peru was valued at $4.5 billion and is expected to experience a growth rate of 8.8%, reaching an estimated value of $7.02 billion by 2026. This growth is just one indicator of the significant size of Peru’s software development industry.
Talent Pool	The construction sector outlook, which often mirrors broader economic trends including tech, shows a vibrant activity with a significant focus on infrastructure, indicating a healthy environment for talent development?.
Cost Efficiency	While specific figures regarding the cost efficiency of hiring in Peru compared to the US weren’t directly found, the overall economic analysis suggests that Peru offers a competitive cost structure, given its lower GDP per capita compared to global averages?
Ease of Business	Peru presents a stable economy and improving infrastructure, hinting at a favorable environment for business, including tech hiring?
Time Zone Alignment	Lima’s growth in data center services underlines Peru’s strategic geographic advantage, including favorable time zone alignment with the US for seamless collaboration??.
Work Hours Trends	Detailed current work hours trends specific to Peru were not directly available, but the general direction towards digital transformation suggests an evolving work culture.
Holidays and Breaks	The comprehensive construction market analysis implies a standard recognition of public holidays and breaks, contributing to work-life balance, which is essential for productivity and employee satisfaction?
Hiring Methods	The broader economic indicators and the focus on digital and infrastructure growth suggest that Peru is adapting to modern hiring methods
Payment Solutions	Peru is adapting to modern payment solutions, aligning with global trends? focusing on security, and speed of transaction processing.
Cultural Alignment	Peru’s strategic efforts towards economic stability and growth, coupled with a focus on infrastructure and tech, suggest a cultural alignment that favors hard work and quality outcomes, which is attractive to US companies
Retention Rates	Specific retention rate figures were not found, but the positive economic outlook and infrastructure growth indicate a potentially stable and attractive environment for employees
Notable Employers	The construction market analysis highlights significant projects and contractors, reflecting a dynamic market that likely attracts notable employers across sectors, including tech??.

Discovering the Leading Tech Hubs of Latin America

Latin America is an awesome place for tech stuff because it’s full of smart tech people and more are learning tech skills every day. It’s not as hard to find great tech talent here as it is in places like North America, where everyone is fighting for the best people.

Countries in Latin America are often praised for being good places to do business and for being innovative. They usually rank well globally, often in the top 50 for business friendliness and top 100 for innovation. They’re also known for being easy places to start and run a business. Local governments are really pushing for digital stuff and making it simpler for businesses from other countries to invest here.

There are around 2 million tech workers in Latin America, offering a big group of skilled people for tech projects. With a booming tech scene and lots of support from tech accelerators and parks, companies that want to outsource software development will find all the help they need here.

Sources: N-iX’s recent market report LinkedIn

Peru at a Glance

Peru is home to about 33 million people and has a wide variety of talented individuals. The country spends a lot on education, especially in fields like engineering, using natural resources, and tourism. Universities in Peru train experts in farming, mining, and taking care of the environment. Many people here can speak Spanish and often English, which makes them great for jobs in the region and worldwide.

Lima, the biggest city and capital of Peru, is a hotspot for new ideas and talent. It’s seeing a lot of new companies start up, especially in tech and eco-friendly areas, drawing talent from both Peru and abroad. People from Peru are known for being flexible, good at solving problems, and dedicated to protecting nature because of the country’s diverse natural settings. At work, they like to team up and are good at working together in different kinds of groups.

Peru is attractive for businesses because it’s politically stable, rich in natural resources, and has a deep cultural background. The government’s push for new ideas and business ventures has led to growth in startups and big companies, especially in fields like farm tech, green energy, and food. With ongoing investment in tech and green efforts, Peru’s skilled workers are a big plus for companies looking for talented folks who care about the environment in this part of the world.

Navigating Peru’s Infrastructure

For Peru in 2023, internet connectivity has significantly improved, with around 24.31 million internet users, equating to a 71.1% penetration rate of the total population at the start of the year. This growth in internet users reflects a concerted effort to bridge connectivity gaps, especially in underserved areas.

When it comes to mobile networks, Peru showcases strong performances across different providers. Entel, in particular, has distinguished itself by winning all three 5G experiential awards for video, gaming, and voice app experiences, alongside the award for 5G upload speeds. Claro, on the other hand, provides the fastest average 5G download speeds and has the highest 5G availability, making it the top choice for users prioritizing download speeds and consistent 5G access.

These developments in both internet and mobile network connectivity underscore Peru’s rapidly evolving digital landscape, offering a robust foundation for both current and future technological initiatives.

Exploring Software Developer Salaries Across Peru’s Urban Landscape

City	Average Hourly rate (PEN)
Arequipa	41.73 PEN
Chiclayo	39.87 PEN
Cusco	38.22 PEN
Huancayo	40.76 PEN
Iquitos	38.71 PEN
Trujillo	42.45 PEN

Source: worldsalaries.com

According to Worldsalaries.com, in Peru, what software developers get paid per hour can change depending on the city. Trujillo pays the most, with an average of 42.45 PEN every hour, while Cusco pays the least, at 38.22 PEN per hour. Cities like  Arequipa, Trujillo, and  Huancayo offer more than 40 PEN an hour, which could mean these places have a higher need for developers or living there costs more. 

On the other hand, Cusco, Iquitos, and Chiclayo offer a bit less, around 38-40 PEN per hour. This difference in pay might show the different costs of living in these areas, how much people want software developers, and how many developers are available. But overall, the pay for software developers in these cities doesn’t change too much, showing that the going rate for this work in Peru doesn’t vary widely from one city to another.

Cost of Living in Peru

Peru boasts one of the lowest costs of living in South America, with basic monthly expenses often totaling USD 2,000 or less, particularly outside of Lima. However, living in the capital city comes with a higher price tag, with around USD 1,500 per month typically sufficient for those who own their property.

While the prices for many services and goods are generally similar across the country, real estate costs vary significantly from one city to another. For instance, renting or purchasing an apartment with sea views in Lima’s upscale areas can be considerably more expensive than in cities like Arequipa. In Lima’s Miraflores district, finding a modern three-bedroom house for less than USD 500,000 can be challenging, while large condominiums in prestigious neighborhoods often exceed USD 175,000. However, prices are notably lower in smaller urban centers and rural areas, with home prices in Arequipa or Trujillo typically starting at around USD 200,000 or less.

• Family of four, estimated monthly expenses total around 5,994.85 Sol without rent.
• A single individual’s monthly costs amount to approximately 1,710.96 Sol, excluding rent.

A Deep Dive into Payment, Taxes, and Benefits for Workers in Peru

Payroll:

Peru releases payroll every month.

Minimum Wage:

Standard Cash: 750 PEN per month ($294) for all workers.

Overtime Pay:

First hour +25% of your hourly wage. After that, enjoy a +35% increase!

Employee Benefits:

• Pension Plan
• Employee insurance.
• Health Insurance
• Allowances
• Annual paid leave
• 13th and 14th month pay

Taxes:

• Employer Payroll Tax: Health Insurance: 9%
• Employee Payroll Tax: For employees linked to the National Pension System, health insurance contributions are set at 13%. Meanwhile, for those associated with the Private Pension System, the contribution rate is slightly lower at 12.5%.

VAT:

Standard Rate: 18%, split into 16% VAT and a 2% Municipal Promotion Tax.

Employee income tax:

Tax Units	Annual Income (PEN)	Tax Rate
0 to 5	0 to 23,000	8%
5 to 20	23,000 to 92,000	14%
20 to 35	92,000 to 1,61,000	17%
35 to 45	1,61,000 to 2,07,000	20%
45 and above	2,07,000 and above	30%

One tax unit is equal to 4,600 Peruvian soles (PEN)

Unveiling Peruvian Work Culture

 In Peru, work culture really values getting to know people, being polite, and working together. People often start conversations by asking about your family or how you’re doing to show they care. Even though being straight to the point is good, everyone tries to keep things friendly at work. It’s common to use respectful titles like “Don” or “Doña” followed by a person’s first name when talking to colleagues.

Balancing work and life outside of work is super important, with a typical workweek being 48 hours long and spread over six days. Work usually starts at 8 AM and goes until 6 PM, but there’s some flexibility. Lunch breaks are long, around two hours, so everyone can relax and hang out with coworkers. Making friends and networking are big parts of work life in Peru because trusting each other is key for business.

Peru’s mix of different cultures, including indigenous, Spanish, and other immigrant influences, means people value working as a group and getting along. Decisions are often made together, and there’s a lot of respect for older or more senior people making important decisions. Meeting face-to-face and building strong relationships are really important, both at work and outside, to do well professionally in Peru.

Legal Framework for Recruitment in Peru

Hiring in Peru involves knowing a few key legal points:

• Labor Contracts: Every worker needs a written contract that shows their pay, benefits, and job details. Both the worker and the company must sign this.
• Minimum Wage: All workers in Peru are entitled to a monthly minimum wage of 750 PEN.
• Workweek Regulations: The standard workweek consists of six days, with either eight-hour shifts or a total of 48 hours per week. Additionally, employees are granted a minimum 45-minute mid-day break.
• Overtime Compensation: Overtime rates are agreed upon between employers and employees. However, for the initial two hours of overtime, compensation cannot be less than 25% of the employee’s total salary, with subsequent hours requiring a minimum 35% increase.
• Weekly Rest: Employees are entitled to a mandatory 24-hour rest period each week, typically observed on Sundays. However, they have the option to work on Sundays and take another day off during the week, with additional compensation if working seven days.
• Night Shift: Night shift work, occurring between 10:00 PM and 6:00 AM, mandates an additional 35% compensation on top of the employee’s regular monthly wage.
• Probationary Period: Employees may undergo a three-month probationary period, extendable for an additional three months. During this time, employees do not enjoy dismissal protection, but employers may assess their suitability for permanent roles.
• Part-Time Employment: Part-time employees, working less than four hours per day, may work up to 24 hours per week over six days, or up to 20 hours per week over five days.
• Benefits Framework: Employees have the option to enroll in either the Public Pension Plan or the Private Benefits Framework, with a 13% contribution rate. This contribution is typically covered by the employer and deducted directly from the employee’s salary, then deposited into the chosen plan.

The Top Hiring Platforms

Looking to hire the best in Peru? Keep these pointers in mind:

• Dive into Local Job Sites: Platforms like Laborum, Bumeran, and Indeed Peru are goldmines for spotting talent. They’re well-visited by job seekers in Peru.
• Social Media: With the high usage of social media in Peru, platforms like LinkedIn, Facebook, and Twitter are perfect for job ads and networking.
• Recruitment Agencies: Struggling to find the right fit? A recruitment agency could speed up the process, leveraging their vast networks.
• Cultural Insights: Understand the local work culture. Job stability might trump other benefits for Peruvian candidates. This knowledge helps in making connections that resonate.

Recruiting in Peru is an adventure with the right strategy. Know the market, and appreciate the culture, and you’ll find the talent to drive your success.

Termination Procedures for Employers in Peru

In Peru, there are clear rules for when and how a job can end:

• Resigning with Notice: Workers can quit by letting their boss know 30 days ahead.
• Service Completion: If the work you were hired for is finished, the job can end.
• Condition Satisfaction: If the job contract’s special conditions are met, the job can end.
• Expiration of Contract: If the contract reaches its end date, the job ends.
• Mutual Agreement: Both the worker and the boss can agree to end the job.
• Disabilities: If a worker can’t work at all anymore because of health reasons, the job can end.
• Unexpected Changes: Jobs can end because of big, unexpected changes like natural disasters or if the company goes under.

If a job ends for any of these reasons, workers might get:

• Compensation: Pay based on how long they’ve worked there.
• Promotions or Reinstatement: If a new job opens up, they might be first in line to get it.

Usually, managers need to let workers know at least six days before ending the job so the worker can respond. Or, workers might have 30 days to show they can still do the job.

If a worker is let go without a fair reason and not according to the rules, they might get money for each year they worked, up to 12 months’ pay.

So, ending a job in Peru means following the rules, giving notices when needed, and making sure workers get what they’re owed if the job ends without a good reason.

Standard Leave Entitlements for Employees in Peru

• Annual/ Earned Leave: Workers get 30 days off every year.
• Sick Leave: Up to 365 days. The first 20 days are paid by the employer, and Social Security covers the remaining 345 days.
• Maternity Leave: 98 days off for new mothers.