---
title: "Peru Tax and Payroll 2026 | EsSalud, income tax, PLAME"
description: "Peru payroll 2026: the UIT rose to PEN 5,500, so every income tax band moved. Employer EsSalud is 9%, top rate 30%."
canonical: https://www.teamed.global/country-hiring-guides/peru/tax-and-payroll
---

Peru · Tax & payroll child

Served by Teamed vetted partner-entity network in Peru

# How does *Peru payroll tax* work in 2026?

Peru writes its income tax bands in UIT, a reference unit that just climbed to PEN 5,500 for 2026 under Decreto Supremo 301-2025-EF. Because every band is a multiple of that unit, the 2.8% rise quietly lifted all five thresholds at once. The rates held steady, from 8% at the bottom to 30% at the top, but the salary level where each one bites has moved.

Last reviewed 13 June 2026 · Peru guide

![Lima skyline at golden hour with the Pacific coastline and Miraflores cliffs in the background.](/images/country-guides/peru-tax-payroll.webp)

Illustration · Lima, Peru

Answer.cite this

Peru employer payroll in 2026 starts with health cover. The employer pays EsSalud at 9% of salary. Pension is an employee deduction, not an employer cost.

Two extra salaries land every year. One in July for Fiestas Patrias. One in December for Navidad. Each is worth 1 month of pay (Ley 27735).

Income tax runs across five bands written in UIT. The UIT rose to PEN 5,500 for 2026, so every threshold moved. Rates run from 8% up to 30%.

Payroll is monthly. Employers file the electronic payroll, PLAME, to SUNAT each month and pay tax and contributions on the same run.

## What does an employer pay in Peru payroll taxes?

The main employer cost is EsSalud. You pay 9% of each salary into the public health system. There is no employer pension contribution.

On top of pay, you owe two full extra salaries a year and a severance savings deposit. Each gratification is worth 1 month of salary (Ley 27735).

| Employer cost | Rate or value | Applies to |
| --- | --- | --- |
| EsSalud (health) | 9% | Monthly salary, no employer pension on top |
| July gratification (Fiestas Patrias) | 1 month | One full salary, paid by 15 July |
| December gratification (Navidad) | 1 month | One full salary, paid by 15 December |

### EsSalud is the employer line

EsSalud is Peru’s public health insurer. The employer pays 9% of each worker’s monthly salary into it under [Ley 26790](https://www.essalud.gob.pe/transparencia/pdf/publicacion/ley26790.pdf). Pension is different. It comes out of the employee’s pay, not the employer’s, so the headline employer charge in Peru is lighter than in many markets. The real cost sits in the extra salaries and the severance fund below.

### Two extra salaries every year

Peru mandates two statutory bonuses, called gratifications. One falls in July for Fiestas Patrias and one in December for Navidad. Each equals 1 month of the worker’s salary, so an annual cost runs to roughly fourteen salaries before contributions. The July gratification is the 13th-salary equivalent and the December one is the 14th ([Ley 27735](https://elperuano.pe/suplementosflipping/juridica/695/web/index.html)).

### CTS, the severance savings fund

CTS, the Compensación por Tiempo de Servicios, is a severance savings fund the employer funds twice a year. Deposits go into the worker’s CTS account in early May and early November, and the worker can draw on them when they leave. The net annual cost is about one extra month of salary, though the exact base depends on the months worked and the bonuses earned, so confirm the figure each period ([DS 001-97-TR](https://elperuano.pe/suplementosflipping/juridica/713/web/index.html)).

## What comes out of a Peru employee's salary?

Pension comes first. The worker picks the public fund (ONP) or a private fund (AFP). The two run on different rates, so the deduction varies by choice.

Income tax is withheld next. EsSalud is paid by the employer, not the worker, so it never reduces take-home pay.

| Employee deduction | Rate | Applies to |
| --- | --- | --- |
| Pension (ONP or AFP) | Varies by fund | Monthly salary |
| Income tax (5th category) | 8% to 30% | Annual pay above the 7 UIT deduction |

### Pension is a choice, ONP or AFP

Every worker in Peru picks one pension route. The public route is the ONP, the national pension office, which runs a single contribution rate. The private route is an AFP, a privately managed fund, which charges a fund contribution plus a commission plus a disability insurance premium. The total rate differs between the two and between AFP providers, so the exact deduction depends on the worker’s choice. Both are deducted from the worker’s pay, not added on top by the employer ([MTPE](https://www.gob.pe/mtpe)).

### Income tax is withheld monthly

The employer withholds 5th-category income tax from each pay run and remits it to SUNAT. The tax is worked out on annual pay, after a fixed deduction of 7 UIT, then spread across the year. Because the UIT rose to PEN 5,500 for 2026, that tax-free slice grew too. The bands and the deduction are covered in full in the next section.

## Peru income tax bands for 2026

Income tax runs across five bands. They start at 8% and rise through 14%, 17%, and 20%.

The top band is 30%. Each band is set in UIT, and the UIT rose to PEN 5,500 for 2026, so every threshold moved up (DS 301-2025-EF).

| Annual labour income band | Rate |
| --- | --- |
| Up to 5 UIT | 8% |
| Over 5 UIT to 20 UIT | 14% |
| Over 20 UIT to 35 UIT | 17% |
| Over 35 UIT to 45 UIT | 20% |
| Over 45 UIT | 30% |

### Why the UIT matters so much

The UIT, the Unidad Impositiva Tributaria, is the reference unit Peru uses to set tax thresholds. For 2026 it is PEN 5,500, up 2.8% from the prior year under [Decreto Supremo 301-2025-EF](https://busquedas.elperuano.pe/dispositivo/NL/2469116-1). Every income tax band is written as a multiple of the UIT, so the first band reaches 5 UIT, the second 20 UIT, and so on. When the UIT moved, all five thresholds moved with it, even though the rates from 8% to 30% did not change.

### The 7 UIT deduction comes first

Before any rate applies, every worker deducts a flat 7 UIT from annual labour income ([TUO Ley del Impuesto a la Renta, Art. 46](https://orientacion.sunat.gob.pe/3071-02-calculo-del-impuesto)). Only what remains is taxed across the bands. Get the order wrong and the tax figure is wrong, even when every rate is right. Teamed’s payroll applies the 7 UIT deduction first on every run, then walks the bands in sequence.

## How does Peru PLAME payroll filing work?

Peru payroll is monthly. The employer files the electronic payroll, PLAME, to SUNAT every month.

PLAME reports each worker’s pay, the withheld income tax, EsSalud, and pension in one monthly return to the tax authority.

SUNAT · Planilla Electronica (PLAME)

PLAME is the Planilla Mensual de Pagos, the monthly payroll return that forms the second part of Peru’s electronic payroll. Employers file it to SUNAT each month, reporting pay, income tax withheld, EsSalud, and pension contributions. Income tax and EsSalud are paid to SUNAT on the same monthly schedule.

Source: [SUNAT: Planilla Electronica PLAME](https://orientacion.sunat.gob.pe/pdt-plame)

Peru payroll runs on a monthly cycle. Every month the employer pulls together pay, deducts pension and income tax, calculates EsSalud, and files PLAME to SUNAT. Two months a year carry an extra salary as well, July and December, because of the statutory gratifications.

The filing covers several lines in one return:

- **Income tax** withheld from each worker, remitted to [SUNAT](https://www.gob.pe/institucion/sunafil/normas-legales) on the monthly schedule
- **EsSalud** at 9% of salary, paid by the employer through PLAME
- **Pension** deducted from the worker, sent to the ONP or the chosen AFP
- **CTS** deposited separately into the worker’s account in May and November

The schedule follows SUNAT’s monthly tax calendar, which sets the due date by the employer’s tax ID. Miss the deadline and SUNAT applies interest and fines on the unpaid tax, so the PLAME run has to close on time every month.

1. Collect monthly pay data Gather salary, any gratification due that month, overtime, and taxable benefits before the run closes.
2. Deduct pension Withhold the worker's pension to their chosen route, the public ONP or a private AFP, at the rate that route applies.
3. Withhold income tax Apply the flat 7 UIT deduction to annual pay, then the bands, and spread the resulting tax across the year's runs.
4. Calculate EsSalud Work out the employer EsSalud health contribution on the worker's salary, on top of net pay already calculated.
5. File PLAME to SUNAT Submit the monthly electronic payroll and pay income tax and EsSalud to SUNAT by the deadline set for your tax ID.

## Pension and statutory bonuses in the Peru payroll stack

Pension is an employee deduction, paid to the public ONP or a private AFP. The employer does not match it.

The bigger employer commitments are the two gratifications and the CTS fund. Each gratification is worth 1 month of salary.

Peru’s pension system is a worker’s choice between two routes:

- **ONP** is the public national pension office. It runs a single contribution rate, withheld from the worker’s pay.
- **AFP** is a privately managed fund. It charges a fund contribution plus a commission plus a disability insurance premium, so the total rate is higher and varies by provider.

Either way, pension is the worker’s cost. The employer withholds it and forwards it, but does not add an employer share on top. That is why the headline employer charge in Peru is the 9% EsSalud line, not a payroll-tax stack.

### The gratifications and CTS are the real load

Where Peru does push employer cost up is the calendar. Two full extra salaries land each year, 1 month in July and 1 month in December (Ley 27735). On top of that, the CTS severance fund takes about one further month of salary across the May and November deposits. Add statutory leave of 30 days a year, and the true annual cost of a Peru hire is well above twelve months of base pay.

## How does Teamed handle Peru payroll for you?

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Peru for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

Income tax, EsSalud, pension, the gratifications, the CTS fund, and the full Peru employment stack run on **one platform**.

**Real HR and legal experts** handle your Peru hires, from the first contract through every monthly PLAME filing to SUNAT. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice, so you see EsSalud, pension, the July and December gratifications, and the CTS deposit as separate lines, never one blended figure.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Peru contractor who converts to payroll keeps their record. That same employee can **graduate** from EOR to your own Peru entity without switching systems. Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture, including the PEN 5,500 UIT change for 2026. EOR is the right model for a first Peru hire, **until it isn't**. Start from [the Peru hiring overview](/country-hiring-guides/peru).

Key sources: [SUNAT Planilla Electronica](https://orientacion.sunat.gob.pe/pdt-plame), [EsSalud Ley 26790](https://www.essalud.gob.pe/transparencia/pdf/publicacion/ley26790.pdf), and the [income tax law (Art. 53)](https://www.sunat.gob.pe/legislacion/renta/ley/capvii.pdf).

## Frequently asked questions

What does an employer pay in Peru payroll taxes in 2026?

The main employer contribution is EsSalud health cover at 9% of salary. There is no employer pension contribution in Peru. The larger employer commitments are two statutory gratifications, worth 1 month of salary each in July and December, plus the CTS severance fund deposited in May and November.

What is deducted from a Peru employee's salary?

Pension and income tax come out of the worker's pay. Pension goes to the public ONP or a private AFP at a rate that depends on the chosen route. Income tax is withheld monthly across five bands, from 8% up to 30%, after a flat deduction of 7 UIT from annual pay. EsSalud is an employer cost, so it does not reduce take-home pay.

What are the Peru income tax bands for 2026?

Labour income tax has five bands set in UIT: 8% up to 5 UIT, 14% from 5 to 20 UIT, 17% from 20 to 35 UIT, 20% from 35 to 45 UIT, and 30% above 45 UIT. The UIT rose to PEN 5,500 for 2026, so every threshold moved up while the rates stayed the same. A flat 7 UIT is deducted before any rate applies.

How does Peru payroll filing work?

Peru payroll is monthly. The employer files the electronic payroll, PLAME, to SUNAT each month, reporting pay, withheld income tax, EsSalud, and pension. Income tax and EsSalud are paid to SUNAT on the same monthly schedule, with the due date set by the employer's tax ID. CTS is deposited separately into the worker's account in May and November.

Does Peru have a 13th and 14th salary?

Yes. Peru mandates two statutory gratifications under Ley 27735. One is paid in July for Fiestas Patrias and one in December for Navidad, each worth 1 month of the worker's salary. Together they add the equivalent of a 13th and 14th salary, so a Peru hire costs well above twelve months of base pay once the CTS fund and 30 days of statutory leave are added.

Teamed Legal Operations

The trap with Peru payroll is treating it like a twelve-month cost. It isn't. Two statutory gratifications add a thirteenth and fourteenth salary, the CTS fund adds close to another month, and statutory leave sits on top. Budget a Peru hire on base pay alone and you will be short by the time July comes around.

A note from Tom Price-Daniel

Peru ties its tax bands to the UIT, and the UIT rose to PEN 5,500 for 2026, so every threshold quietly moved.  
The employer line is light, EsSalud at 9%, but two extra salaries and the CTS fund push the real cost past twelve months.  
Model it before you hire, not after.

Tom Price-Daniel · Co-founder, Teamed

## Related Peru guides

- [Hiring in Peru, overview](/country-hiring-guides/peru)parent
- [Termination and severance in Peru](/country-hiring-guides/peru/termination-and-severance)sibling
- [Cost breakdown for Peru](/country-hiring-guides/peru/cost-breakdown)sibling
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with SUNAT, EsSalud, and the Ministerio de Trabajo y Promocion del Empleo (MTPE), or speak to a qualified professional, before relying on any specific figure. The UIT changed to S/ 5,500 for 2026 under Decreto Supremo 301-2025-EF, which shifts every income tax threshold. Pension rates differ between the public ONP and private AFP funds and are not fixed figures. The 2026 Remuneracion Minima Vital and a proposed night-work surcharge were unconfirmed in government sources as of June 2026.