Hiring a Domestic Worker in Peru: Employer Obligations, Contracts and Benefits

INTRODUCTION

In this practical guide, we explain the employment rules that apply to domestic workers in Peru under Law No. 31047 and its implementing regulations, as in force in 2026.

People who regularly perform household duties such as cleaning, cooking, laundry, ironing, childcare, or caring for elderly or disabled family members are protected by a special employment regime in Peru. This legal framework grants domestic workers specific employment rights while imposing a number of legal obligations on employers.

Whenever someone provides these services on a regular basis under the direction of a private employer, an employment relationship generally exists. This applies whether the employee lives in the employer’s home or works according to an agreed schedule.

Employers are required to sign a written employment contract, register the employment with the Ministry of Labour and Employment Promotion (MTPE), pay EsSalud health insurance contributions, and withhold pension contributions according to the worker’s chosen pension system.

Although informal employment remains common in Peru and many employers are unfamiliar with these legal requirements, complying with the applicable rules helps avoid penalties while protecting both parties.

This article explains the main legal requirements every employer should understand before hiring domestic staff in Peru.

1. Who Qualifies as a Domestic Worker?

A domestic worker is someone who performs household duties in a private residence without carrying out commercial or business activities. Typical responsibilities include cleaning, cooking, laundry, ironing, childcare, and caring for elderly or disabled household members.

For example, a person hired directly by a family to clean their home generally falls under this special employment regime. By contrast, workers employed by a cleaning company are usually covered by different labor regulations.

Domestic workers may be employed under several arrangements:

• Live-in employment, where the employee resides in the employer’s home.

• Live-out employment.

• Full-time employment.

• Part-time or hourly employment.

When the employee lives in the employer’s home, the employer must provide suitable accommodation and meals. These benefits are not considered part of the employee’s salary and cannot be deducted from wages.

The employment arrangement, working hours, and schedule should always be clearly stated in the employment contract.

2. Employment Contract and Registration

Employment contracts must be made in writing and signed in duplicate. As a general rule, employment is presumed to be for an indefinite period unless there is a valid legal reason for a fixed-term contract.

Even if no written contract exists, the employment relationship does not disappear. Under Peru’s principle of the primacy of reality, the actual facts take precedence over formal documentation. If a person provides services personally, receives payment, and works under the employer’s direction, the law may recognize an indefinite employment relationship.

What Should the Contract Include?

At a minimum, the contract should specify:

• The identities of both parties.

• The workplace.

• The employee’s duties.

• The employment start date.

• Salary and payment method.

• Working hours and schedule.

• Weekly rest day.

• Whether the employment is live-in or live-out.

• Vacation, bonus, and severance benefit provisions.

The employer must register the employment through the Domestic Work Registry maintained by the Ministry of Labour and Employment Promotion within three business days after signing the contract. The online system also allows employers to update employment information, report the end of employment, and generate payslips.

Once registration has been completed, the employee must receive proof of registration within three business days. The same requirement applies whenever employment information is updated or the employment relationship ends.

The official registration platform is available here:

https://www.gob.pe/17006-registrar-modificar-o-dar-de-baja-a-un-trabajador-del-hogar-en-el-ministerio-de-trabajo

When employment ends, the employer has thirty calendar days to notify the Ministry of Labour.

3. Salary and Payment

Salary is freely agreed between the parties. However, employees working the full legal working day of eight hours per day or forty-eight hours per week cannot receive less than Peru’s Minimum Monthly Wage.

As of 2026, the Minimum Monthly Wage remains S/ 1,130, effective since January 1, 2025. If the government increases the minimum wage, salaries must be adjusted accordingly where applicable.

For part-time employment, wages may be calculated proportionally using the statutory minimum wage as a reference.

Payment may be made weekly, biweekly, or monthly, depending on the agreement between the parties. Bank transfers are permitted provided the employee agrees.

Employers must issue a payslip for every payment showing salary, working time, deductions, and mandatory contributions. Proper payroll records are important evidence of legal compliance.

4. Working Hours, Rest Periods and Overtime

The maximum legal working time is eight hours per day or forty-eight hours per week.

Employees are entitled to at least twenty-four consecutive hours of weekly rest, preferably on Sundays. During weekly rest periods, holidays, and vacations, domestic workers cannot be required to remain in the employer’s home.

Live-in domestic workers must also receive at least twelve consecutive hours of daily rest between working days.

Overtime

Overtime is voluntary and cannot be imposed unilaterally by the employer.

The first two overtime hours on a given day must be paid with a minimum surcharge of 25% above the normal hourly rate. Additional overtime hours carry a minimum surcharge of 35%.

Employers should ensure overtime is properly documented and reflected on the employee’s payslip.

Work on Public Holidays or Weekly Rest Days

Domestic workers cannot be required to work on public holidays or their weekly rest day.

If they voluntarily agree to work, the employer may either grant substitute time off or pay the legally required additional compensation, including the applicable 100% premium.

March 30, Domestic Workers’ Day, is also recognized as a paid holiday under this employment regime.

5. Employee Benefits

Domestic workers are entitled to paid annual vacation, statutory bonuses, and severance benefits known as CTS (Compensation for Length of Service).

Paid Vacation

After completing one continuous year of service, employees are entitled to thirty calendar days of paid annual leave.

If employment ends before vacation has been taken or before a full year has been completed, accrued vacation must be paid proportionally.

Statutory Bonuses

Domestic workers receive two statutory bonuses each year: one before Peru’s Independence Day celebrations in July and another before Christmas.

Each bonus equals one month’s salary when the employee has worked the full qualifying period. If only part of the qualifying period has been completed, the employee receives a proportional bonus.

Any outstanding proportional bonus must be included in the employee’s final settlement when employment ends.

Compensation for Length of Service (CTS)

CTS is a statutory employment benefit intended to provide financial protection when employment ends.

Employers must deposit CTS twice each year, during the first fifteen calendar days of May and November.

If employment ends before the end of a qualifying period, proportional CTS must be paid directly to the employee as part of the final settlement.

6. Health Insurance and Pension Contributions

Domestic workers are entitled to health insurance coverage and participation in Peru’s pension system.

EsSalud

Domestic workers are covered by Peru’s public health insurance system, EsSalud.

The employer must pay a monthly contribution equal to 9% of the employee’s salary. This contribution is paid entirely by the employer and cannot be deducted from wages.

When an employee earns the minimum monthly wage or less, the contribution is calculated using the statutory minimum wage as the contribution base.

Pension Contributions

Employees may choose between Peru’s public pension system (ONP) and the private pension system (AFP).

If the employee chooses ONP, the employer must withhold 13% of the employee’s salary and remit the contribution each month.

If the employee chooses an AFP, the employer must withhold and pay the mandatory pension contribution together with the applicable insurance premium and administrative fees.

Unlike EsSalud contributions, pension contributions are deducted from the employee’s salary.

7. Ending the Employment Relationship

Employment may end through resignation, mutual agreement, expiration of a valid fixed-term contract, retirement, death, dismissal, or other legally recognized grounds.

Resignation

Employees wishing to resign should normally provide thirty calendar days’ notice. The employer may waive this notice period.

Final Settlement

When employment ends, the employer must prepare a final settlement including all outstanding salary, accrued vacation, proportional bonuses, proportional CTS, overtime, and any other outstanding employment benefits.

These payments must generally be made within forty-eight hours after employment ends.

The employer must also register the termination with the Ministry of Labour within the applicable legal deadline.

Dismissal

The grounds and procedures for dismissal are governed, where applicable, by Peru’s General Private Labour Regime.

Employers should never dismiss an employee without sufficient legal grounds or without following the required legal procedure.

If a dismissal is considered arbitrary after the probationary period has ended, the employer may be required to pay compensation equal to one and a half monthly salaries for each completed year of service, up to a maximum of twelve monthly salaries. Partial years are calculated proportionally.

In practice, dismissing a domestic worker without a legally valid reason may result not only in dismissal compensation but also in liability for any outstanding employment benefits.

8. Employer Compliance Checklist

Before and during employment, employers should ensure that they:

1. Sign a written employment contract.

2. Register the employment with the MTPE within the legal deadline.

3. Pay wages on time and issue payslips.

4. Pay EsSalud contributions.

5. Withhold and remit pension contributions.

6. Deposit CTS in May and November.

7. Pay statutory bonuses in July and December.

8. Grant paid annual vacation.

9. Respect legal working hours and rest periods.

10. Complete the final settlement and register the termination when employment ends.

Hiring a domestic worker in Peru should never be treated as an informal arrangement based solely on trust. A properly drafted employment contract, timely registration, and compliance with Peru’s labor laws protect both the employer and the employee while significantly reducing the risk of future disputes and legal penalties.