9 Best Employer of Record (EOR) Services in Peru (2026)

Why use an EOR in Peru?

If you don't have a local entity in Peru, you can't run payroll legally or sign employment contracts as the employer of record. For employer costs, contract rules and termination, read our guide to employer of record in Peru.

How to evaluate an EOR for Peru

Not every EOR handles Peru equally well. Here's what to check before you commit.

1. Contract classification expertise. Ask how they handle fixed-term vs. indefinite contracts. Fixed-term contracts max out at five years and must be registered with the Labor Ministry within 15 days. If a provider can't explain when each applies, that's a problem.
2. Payroll accuracy for mandatory bonuses. Peru requires a 13th salary paid in two halves: by July 15 and December 15. Confirm the provider calculates this on base pay only and handles the split correctly, not as a lump sum at year-end.
3. CTS deposit management. CTS (compensation for time of service) is a mandatory severance reserve deposited twice a year. Ask specifically how they handle the deposits and whether they track accrual correctly for each employee.
4. Termination process knowledge. Dismissal in Peru requires written notice with evidence, and employees get a set response period that differs for misconduct charges and performance issues. A provider should be able to walk you through this process without hesitation.
5. SUNAT compliance. Payroll taxes are filed with SUNAT, Peru's tax authority. Ask whether they handle filings directly or outsource them, and how they manage income tax withholding, which is progressive and changes with each employee's earnings. For the current brackets, see our Peru hiring guide.
6. Own entity vs. partner network. Some EORs operate through local partners in Peru rather than their own legal entity. This adds a layer of risk. Ask directly whether they have their own registered entity in Peru.

Questions to ask during provider demos

These questions will quickly show you who knows Peru and who's reading from a script.

• How do you handle the two-tranche 13th salary requirement, and what's included in the calculation basis?
• Walk me through how you manage CTS deposits. When are they made, and how do you track accrual per employee?
• If we need to terminate an employee for performance reasons, what's the exact process you follow under Peruvian law?
• How do you handle fixed-term contracts, and what triggers reclassification to an indefinite contract?
• Can you walk me through how you calculate and withhold income tax for one of our employees, using a real salary example?
• What happens if an employee takes maternity leave? What protections apply and for how long after they return?
• If a misclassification or compliance issue arises, who bears the legal and financial liability?
• Do you operate through your own legal entity in Peru, or through a local partner?
• What does your pricing include, and what's typically billed as an add-on?

Red flags to watch for

These are the warning signs that a provider isn't the right fit for Peru.

• They can't explain CTS. If a provider is vague about compensation for time of service deposits or treats it as optional, walk away.
• They default to fixed-term contracts. Some providers push fixed-term arrangements to appear flexible, but in Peru these carry strict limits and registration requirements. Overusing them creates reclassification risk.
• They don't mention the 13th salary unprompted. This is a core statutory requirement. A provider who doesn't bring it up in a demo probably isn't handling it correctly.
• Vague termination guidance. If they can't tell you how the response windows differ for misconduct and performance dismissals, they're not ready for a real termination situation.
• No own entity in Peru. Operating through an undisclosed local partner means you have less visibility and less protection if something goes wrong.
• Pricing that bundles everything with no breakdown. Get what is included, and what triggers extra charges, in writing before you sign.

Common mistakes to avoid

These are the pitfalls we see most often when companies start hiring in Peru.

• Using fixed-term contracts for permanent roles. Courts will reclassify them as indefinite, and you'll owe full benefits retroactively. A good EOR will push back if you try this and explain why indefinite contracts are the safer default.
• Underestimating total employer cost. Payroll taxes, ESSALUD, pension contributions, and mandatory bonuses add a large share on top of gross salary. Your EOR should give you a full cost model before you make an offer.
• Skipping the termination process. Letting someone go without written notice and a documented response period is considered arbitrary dismissal, which triggers substantial compensation. The right EOR manages this process for you.
• Miscalculating leave entitlements. Employees earn a full month of paid annual leave that counts calendar days, weekends included. Getting this wrong creates a liability that compounds over time. Your EOR should track accrual automatically.
• Ignoring protected categories. Pregnant employees can't be dismissed during pregnancy or for a protected period after maternity leave ends. A compliant EOR will flag this before any termination conversation goes further.

Your next steps

Here's how to go from this list to your first hire in Peru.

Price matters, but it's not the only thing. A provider that mishandles a CTS deposit, botches a termination, or miscalculates the 13th salary will cost you far more than the monthly fee you saved. Compliance expertise is what you're paying for.

Need help choosing?