Hiring Peruvian software engineers offers US companies access to a growing tech talent pool, excellent English proficiency, and convenient time-zone alignment. Peru has invested in STEM education, producing a high percentage of engineering graduates (the highest in Latin America at ~29.6% of tertiary degrees). Combined with lower labor costs, Peruvian developers earn roughly 30–50% less than US counterparts. Peru has emerged as an attractive nearshore hiring destination. The country’s proximity to the US (Eastern Time Zone) ensures substantial work-hour overlap, facilitating real-time collaboration. Many Peruvian engineers speak fluent English, reducing communication barriers.
US employers must navigate Peru’s telework laws, contract rules, compensation norms, mandatory benefits, tax regulations, visa requirements, and other HR considerations when hiring local developers. This guide covers those essentials, plus a 2025 holiday and tax-bracket summary, and shows how CloudDevs’ platform streamlines hiring, vetting, payroll, and compliance for seamless onboarding.
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In 2022–2023 Peru enacted a formal Telework Law (Law No. 31572) to regulate remote work in both public and private sectors. Published Sept 11, 2022, with regulations issued Feb 2023, the law took effect in April 2023. It defines telework as any arrangement where an employee performs their duties outside the employer’s premises using information and communications technology. Key requirements of Peru’s Telework Law include:
Employers and employees must sign a written telework contract or addendum specifying all terms of the remote work arrangement (hours, equipment, duties, work location, data security, etc.). US companies hiring Peruvian engineers should ensure they have a clear, bilingual (Spanish/English) contract outlining scope of work, schedule, and deliverables.
The employer typically provides or reimburses necessary equipment (laptop, monitor, Internet, etc.). Any costs borne by the employee (e.g. higher utility bills) should be agreed in advance.
Although traditional workplace health-and-safety laws may not fully apply to remote workers, companies are encouraged to promote ergonomic home-office setups and address any occupational risks. Peru’s telework rules emphasize employer support for a safe remote work environment.
Peruvian law explicitly grants employees the right to disconnect outside working hours. In practice, this means respecting agreed schedules and avoiding pressuring remote workers with after-hours communication. US managers should set clear expectations around response times and off-hours boundaries (e.g. no mandatory late-night or weekend work) to comply with this principle.
The employer must comply with Peru’s Personal Data Protection Law (Law 29733). Remote engineers will handle company and client data, so secure IT practices are required. Written consent for any data processing and adequate cybersecurity measures (VPN, antivirus, training) are essential to protect personal and business data.
Note: If the developer is officially hired through an Employer-of-Record (EOR) or local Peruvian entity, all Peruvian labor laws (work hours, social security, benefits, etc.) apply. However, some provisions (like on-site occupational safety) may be less relevant for strictly remote roles. If the person is engaged as an independent contractor (no local contract), many labor regulations technically do not apply. That said, misclassifying an employee as a contractor can create legal and tax risks (e.g. creating a “permanent establishment” or liability for unpaid contributions). US companies should consult Peruvian legal counsel or use an EOR service to determine the appropriate engagement model and ensure compliance.
Peru’s labor code requires clear, compliant contracts to protect both employer and employee. Key contract types and terms include:
Best Practice: treat remote hires like on-site, contract, social security, tax withholding, and consider an EOR (e.g., CloudDevs) for full compliance.
Peru’s default work schedule is 8 hours per day, 48 hours per week. Remote software engineers should typically follow this or an agreed variation (e.g. four 10-hour days). Employers must specify normal hours in the contract (for example, Monday–Friday, 9:00–18:00 Lima time).
Overtime rules: Any hours beyond 48/week or more than 8/day are considered overtime. Overtime pay is calculated as follows:
By law, employees are entitled to at least 24 consecutive hours of rest per week (typically Sunday). Scheduling any work on a Sunday (or scheduled rest day) must be compensated as overtime. There are also provisions for shorter work weeks in certain regions (e.g. Amazonas and parts of Lake Titicaca) but tech employees in Lima or major cities follow the 48/6 model.
source: levels.fyi
When calculating total compensation for Peruvian engineers, US employers should include base salary plus mandated bonuses and contributions. Key points:
As of Jan 1, 2025, Peru’s national minimum wage is 1,130 Peruvian soles (PEN) per month (~US$302). This is the floor for all formal employees. Software engineers typically earn well above this. Note that the minimum wage rose from 1,025 PEN in 2024 to 1,130 PEN in 2025 (a 10% hike).
Peruvian tech salaries vary by experience and city. In general, junior software developers in Peru earn around US$23K–41K per year, mid-level about $39K–63K, and senior $59K–$87K (these figures include local currency conversions and vary by employer). In Lima (the capital), salaries tend to be on the higher end. By comparison, an average US software engineer might earn $100K+, so Peru offers a cost advantage. According to one industry report, Peruvians in tech earn 30–50% less than their US peers.
source: payscale
Peruvian law requires two annual bonuses equivalent to one month’s salary each. The first (“Gratificación Fiestas Patrias”) is paid around July (Independence Day), and the second (“Gratificación Navidad”) around December. Each bonus is generally equivalent to one regular salary (capped at a legal limit) and is taxed favorably. These are mandatory for formal employees, though often employers factor them into monthly salary quotes (some quotes say “13-month pay included”). US companies should budget for these extra payouts when calculating total compensation.
Employers must pay mandatory contributions on top of salary:
Contribution Type | Rate | Paid By |
Health insurance (EsSalud) | 9% | Employer |
Pension (National ONP) | 13%* | Employee (withheld) |
Pension (Private AFP): account | 10%* | Employee (withheld) |
Pension (Private AFP): insurance/fee | ~2.5% | Employee (withheld) |
Pension (Private AFP): employer | ~0% | Employer (mostly no match) |
CTS (Severance) | ~1 month/year | Employer (deposited twice/yr) |
Work accident insurance (SCTR) | ~1–1.7% | Employer |
*For ONP, the 13% is withheld from salary. For AFP, 12.5%–13% total is withheld (10% + contributions).
Peruvian labor law mandates a variety of paid leaves. Key entitlements for full-time employees include:
In addition to leave days, Peru observes national public holidays, when workers are entitled to a day off (or extra pay if they must work). The official 2025 public holidays include (dates in 2025):
Table: Peru’s national holidays for 2025. (Note: the government also often grants additional one-off “puente” holidays after long weekends, but the above are the standard legal holidays.) When a holiday falls on a Sunday, it is often “compensated” with the following Monday off.
Employers must pay normal salary on holidays. If an employee works on a holiday (e.g. for a critical release), law requires overtime pay (typically 100% extra, though often avoided in remote work settings). Holiday pay and leave should be planned upfront when scheduling projects.
If you hire a Peruvian as an employee, the employer is responsible for payroll taxes. Key points:
In summary, a US company hiring Peruvian employees should work with local experts (or CloudDevs) to register with SUNAT (tax authority), and set up proper payroll withholding. The compliance burden is significant for foreign employers, making an EOR solution attractive.
Since this guide assumes hiring Peruvian nationals (or residents) working from within Peru, US employers usually do not need to worry about Peruvian work visas. A Peruvian citizen working remotely for a US company is simply engaged under Peruvian law.
For completeness:
In practice, visa matters are minimal when simply hiring remote Peruvians working from Peru. The real challenges are labor compliance and payroll (addressed above).
When hiring remote Peruvian developers, factor in these best practices:
Trial Projects: begin with a small engagement or trial period to assess skills and fit before long-term hiring.
CloudDevs is your turnkey Employer-of-Record in Peru, handling:
Focus on building your product, CloudDevs takes care of the rest.
Ready to expand your team with Peru’s top software engineers?
Learn about hiring Peruvian developers with CloudDevs here.