Work and Wages

This page was last updated on: 2021-11-25

Minimum Wage

In accordance with the Peruvian Constitution, every worker is entitled to a fair and adequate remuneration to seek him and his family material and spiritual welfare. Minimum wage rate is determined according to the needs of workers and their families. Other factors that are considered while fixing the minimum wage include cost of living, economic development in the country, productivity, capacity of the employer and the inflation rate.

The minimum wage in Peru is set by the National Labour and Employment Promotion Council (a tripartite plus institution composed of worker, employer and government representatives) which after consultation with the workers' and employers' organizations determines the minimum wage. If no agreement is reached on minimum wage in the Council, this is determined through a Presidential Decree. Wages can also be determined by collective agreement. However, the legislation does not clearly specify that the wages set by collective agreement can be lower than the minimum wage rate. Different wage rates are determined for different occupations and sectors.

Compliance with labour laws including minimum wage regulations is ensured by the Labour Inspection service which is part of the Ministry of Labour & Social Promotion. Failure to comply with minimum wage regulations results in fines calculated on the basis of tax unit reference index for the year when the offence took place.  The maximum fine ranges between 5-20 tax units depending on the degree of violation.

Source: §24 & 118 of the Political Constitution of Peru, 1993; Decreto Supremo que incrementa la Remuneración Mínima Vital de los trabajadores sujetos al régimen laboral de la actividad privada; Supreme Decree No. 004-2014-TR on Regulating the Organization and Functions of the Ministry of Labor and Promotion of Employment; §19(3) of the General Law on Work Inspection and Workers’ Defence, 2001 (Legislative Decree N° 910)

Regular Pay

Wage is the compensation in cash or in kind that a worker receives for services rendered. There is no specific provision in labour law regarding regular payment of wages to workers however a worker may terminate an employment contract without any obligation if the employer is not paying remuneration in a timely manner Employers are also required to keep wage records and pay slips under the Supreme Decree No. 001-98-TR of 20 January 1998 regulating the obligation of the employers to maintain wage records. Legislative Decree No. 1310 stipulates that, for all legal purposes, employers are obliged to keep documents and proof of payment of economic labour obligations only up to five (5) years after the payment is made. The decree further provides that where the payment of economic labour obligations is deposited in an account through banking system, the employer can substitute the printing and physical delivery of the pay slips or proof of payment for the provision of said documents through the use of information and communication technologies. 

Source: §66 of the Productivity and Labour Competitiveness Law No. 728

Regulations on Work and Wages

  • Constitución Política del Perú de 1993 / Political Constitution of Peru, 1993

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