Hiring foreign employees in Peru

Foreign companies starting or expanding in Peru often need to bring people they trust: a general manager for the launch, a technical specialist, a finance lead from the regional office. Peru allows this, but under a specific regime. The contract must follow a prescribed form, the entity must stay within limits on foreign staff or fit an exemption, and the employee cannot begin work until both the contract and their immigration status are in place.

The business problem

The hiring of foreign nationals is governed by Legislative Decree 689 and its regulations. As a general rule, foreign employees may not exceed 20% of the entity’s workforce, and their pay may not exceed 30% of the total payroll. The law provides exemptions, for example for specialized professionals and technicians or for management personnel of a new business activity, and treats certain foreign nationals as nationals, such as those with a Peruvian spouse or immigrant status.

The contract itself must be in writing, for a fixed term of up to three years, renewable, and must include a commitment to train Peruvian staff in the same occupation. It is filed through the MTPE (the Ministry of Labor and Employment Promotion) online system and approved on filing, subject to later review. Separately, the employee needs an immigration status that allows them to work, such as resident worker status. For a small entity, a single foreign manager can already test the limits. Our guide to employing in Peru explains how this fits into the wider setup, and our note on hiring foreign employees in Peru goes into the detail.

How we approach it

We start by calculating the entity’s position against both limits, including planned hires, and identify any exemption or exclusion that applies. Where the numbers are tight, we explain the options to the regional team before the assignment is confirmed.

We then draft the contract, adapting the group’s assignment letter to the Peruvian form, and coordinate its filing. Because the employee cannot begin working until the contract is approved and their immigration status allows it, we agree a timeline with the immigration adviser and the mobility team. The principles in our note on employment contracts in Peru also apply: once employed locally, the foreign employee has the same statutory benefits as any other employee.

What the engagement includes, and its limits

The service covers limit assessment, contract drafting, filing support, coordination with immigration, and advice on renewals, changes and the end of the assignment. It is often part of our employment setup service for new entities.

We do not process visas or residence permits, and we do not advise on personal income tax or social security totalization; those belong to immigration and tax advisers, with whom we coordinate. We cannot guarantee the timing of decisions by the immigration authorities.

Coordination with the parent company, finance and payroll

Assignments involve several teams: mobility, HR, tax and payroll in more than one country. We give the regional mobility team a bilingual memo on Peruvian obligations and timing, confirm with the local payroll provider how the employee will be registered and paid, and flag split-pay or home-country arrangements that need review under Peruvian rules. Finance receives the local cost of the assignment, including statutory benefits.

Getting started

Tell us the employee’s nationality, role, intended start date and the entity’s current headcount and payroll. That is enough to check the limits and propose a timeline.