Net Salary Calculator Peru
Calculate your net salary after taxes, EsSalud contributions, and AFP/ONP contributions in Peru for the 2025 fiscal year.
Notes:
- This calculator provides estimates and should not be used for official tax purposes.
- The calculation uses projected income tax rates and scales for Peru in 2025.
- Legal bonuses correspond to a full salary in July and December.
- CTS is approximately equivalent to 1.1667 salaries per year (deposited in May and November).
- The EsSalud contribution (9%) is paid by the employer and does not affect your net salary.
How We Calculate Your Net Salary in Peru
Income Tax Rates for 2025
Income tax in Peru is calculated using a progressive system based on your annual income. For the 2025 fiscal year, income tax rates for employees on payroll (fifth category income) are:
| Annual Income | Tax Rate |
|---|---|
| Up to 7 UIT (S/ 37,450) | 8% |
| More than 7 UIT up to 12 UIT (S/ 37,451 - S/ 64,200) | 14% |
| More than 12 UIT up to 27 UIT (S/ 64,201 - S/ 144,450) | 17% |
| More than 27 UIT up to 42 UIT (S/ 144,451 - S/ 224,700) | 20% |
| More than 42 UIT (S/ 224,701 and above) | 30% |
Note: For 2025, the UIT (Tax Unit) is projected to be S/ 5,350. The fixed deduction for workers is 7 UIT annually.
Pension System Contributions
In Peru, dependent workers must join one of the two existing pension systems:
National Pension System (ONP)
- Single contribution rate: 13% of monthly gross salary
- It is a pay-as-you-go system where current contributors finance retirees
- The pension is calculated based on an average of the last years of contributions
Private Pension System (AFP)
- Mandatory contribution: Approximately 10% of gross salary
- Administration fee: Between 1.35% and 1.69% (depending on the AFP)
- Disability and survivor insurance: Approximately 1.35%
- Total AFP deduction: Between 12.7% and 13.04% of gross salary
Pension system contributions are deducted directly from your monthly gross salary.
EsSalud Contribution
The EsSalud contribution is mandatory to provide health coverage to workers and is paid by the employer:
- Contribution rate: 9% of monthly gross salary
- This contribution is paid entirely by the employer
- It is not deducted from the worker's salary, but is included in the total cost for the employer
Legal Bonuses
Bonuses are additional payments that employers must make in July (Independence Day) and December (Christmas):
- Each equals one full gross salary
- Workers with less than 6 months receive a proportional amount
- Since 2015, bonuses are exempt from EsSalud and AFP/ONP contributions
- Instead, employers pay an extraordinary bonus of 9% of the bonus amount
Compensation for Time of Service (CTS)
CTS is a social benefit that functions as unemployment insurance:
- Equivalent to approximately one and a half salaries per year
- Deposited in two parts: May (for the November-April period) and November (for the May-October period)
- The calculation includes the basic salary plus one-sixth of the last bonus received
- Not subject to taxes or contributions
Cost of Living and Salaries by Region in Peru
Although taxes are uniform throughout the country, the cost of living and salary levels vary significantly between different regions:
Peru Salary Overview for 2025
To understand the complete context of salaries in Peru, it's important to know the averages by sector and salary distribution:
Average Salaries by Industry
| Industry | Average Monthly Salary (2025 Projected) |
|---|---|
| Mining | S/ 6,500 |
| Technology and IT | S/ 5,800 |
| Oil and Gas | S/ 5,500 |
| Finance and Banking | S/ 4,800 |
| Telecommunications | S/ 4,200 |
| Construction | S/ 3,800 |
| Manufacturing Industry | S/ 3,500 |
| Health | S/ 3,300 |
| Education | S/ 2,800 |
| Retail | S/ 1,750 |
| Agriculture | S/ 1,600 |
| Hospitality and Tourism | S/ 1,550 |
Income Distribution in Peru
Where does your salary fit within the national income distribution?
- Top 10%: Income above S/ 5,500 monthly
- Top 25%: Income above S/ 3,200 monthly
- Median (50%): Income around S/ 1,800 monthly
- Bottom 25%: Income below S/ 1,200 monthly
- Bottom 10%: Income below S/ 950 monthly
Minimum Wage in Peru 2025
The minimum living wage in Peru for 2025 is projected to be S/ 1,250 monthly, which would represent a 12.6% increase from the S/ 1,110 established in 2023. This adjustment responds to the need to bring the minimum wage closer to the basic consumption basket and compensate for the inflationary effects of recent years.
It's important to note that approximately 65% of the Peruvian workforce works in the informal sector, where salaries are often below the legal minimum and do not include the social benefits described in this calculator.
Tips to Optimize Your Net Salary in Peru
- Evaluate your pension system: Compare the returns and fees of different AFPs to maximize your retirement fund. Also analyze whether the national (ONP) or private (AFP) system suits you better according to your age and retirement expectations.
- Consider remote work for foreign companies: The growth of remote work has opened opportunities to work with foreign companies that offer internationally competitive salaries while living in Peru with a lower cost of living.
- Negotiation of non-monetary benefits: Instead of focusing only on the base salary, negotiate benefits such as private health insurance, performance bonuses, paid training, or schedule flexibility that can improve your quality of life.
- Take advantage of tax benefits: Keep your deductible expense receipts organized, such as rentals, health services, and other expenses that can reduce your taxable base for income tax calculation.
- Evaluate your pension system: Compare the returns and fees of different AFPs to maximize your retirement fund. Also analyze whether the national (ONP) or private (AFP) system suits you better according to your age and retirement expectations.
- Consider remote work for foreign companies: The growth of remote work has opened opportunities to work with foreign companies that offer internationally competitive salaries while living in Peru with a lower cost of living.
- Negotiation of non-monetary benefits: Instead of focusing only on the base salary, negotiate benefits such as private health insurance, performance bonuses, paid training, or schedule flexibility that can improve your quality of life.
- Take advantage of tax benefits: Keep your deductible expense receipts organized, such as rentals, health services, and other expenses that can reduce your taxable base for income tax calculation.
- Continuous professional development: Investing in education and specific certifications for your sector can significantly increase your value in the Peruvian job market, especially in sectors such as technology, mining, and finance.
- Savings and investment: Develop a savings and investment strategy to grow your assets beyond your salary, taking advantage of financial instruments available in Peru such as mutual funds, stocks, or bonds.
Frequently Asked Questions about Salaries in Peru
What will be the minimum wage in Peru in 2025?
The minimum living wage (RMV) in Peru for 2025 is projected to be S/ 1,250 monthly, which would represent a 12.6% increase from the S/ 1,110 established in 2023. This adjustment primarily responds to inflationary factors and the goal of progressively bringing the minimum wage closer to the basic family basket. It's important to mention that the minimum wage in Peru is usually adjusted approximately every 2 years, although there is no fixed rule for these increases.
What is considered a good salary in Peru in 2025?
A good salary in Peru varies significantly depending on location, industry, and level of experience. In Lima, a monthly salary of S/ 4,000-5,000 is considered good, allowing a comfortable standard of living for one person. In provinces, this amount decreases to S/ 3,000-3,500. To be in the top 10% of the national income distribution, you need to earn more than S/ 5,500 monthly. Experienced professionals in sectors such as mining, technology, or finance can aspire to significantly higher salaries, between S/ 7,000 and S/ 12,000 monthly, especially in managerial or specialized positions.
How is income tax calculated exactly in Peru for 2025?
Fifth category income tax (for dependent workers) is calculated progressively. First, the projected annual income (annual gross salary) is determined. From this amount, the fixed deduction of 7 UIT (S/ 37,450 for 2025) is subtracted. Progressive rates are applied to the result: 8% up to 7 additional UIT, 14% for the next bracket, 17% for the next, 20% for the next, and 30% for the excess. Monthly withholdings are approximations that are adjusted in December with a final regularization. It's important to note that bonuses have been exempt from income tax since 2015.
What is the difference between choosing AFP or ONP for my pension?
The ONP (National System) offers a fixed pension based on your last years of contribution, with a minimum of 20 years of contributions to receive a pension. It's a solidarity system where current workers finance current retirees. The AFP (Private System) creates an individual account where your contributions generate returns over time. When you retire, you receive what has accumulated in your account plus the returns generated. The ONP deducts a fixed 13%, while AFPs deduct between 12.7% and 13.04% depending on the administrator. The decision should consider your age, employment expectations, income level, and personal preferences regarding security vs. potential returns.
What happens with bonuses and CTS in the net salary calculation?
Bonuses (July and December) are exempt from AFP/ONP contributions and have not been subject to income tax since 2015. Instead of EsSalud contributions, the employer pays an extraordinary bonus equivalent to 9% directly to the worker. The CTS is not subject to any deduction or tax, being deposited entirely in a special bank account in the worker's name. These benefits significantly complement the annual income of formal workers in Peru, representing approximately 2.5 additional salaries per year (2 for bonuses and 1.5 for CTS).
How will projected inflation affect salaries in Peru for 2025?
Inflation in Peru for 2025 is projected to be around 2.8%, within the Central Bank's target range. Average salary increases are expected to be slightly higher than this percentage, around 3-4% in the formal sector, which would allow a small gain in purchasing power. However, these increases will vary significantly by sector, being more generous in industries with talent shortages such as technology, mining, and finance. The increase in the minimum wage to S/ 1,250 also seeks to compensate for the accumulated inflationary effect. Companies are increasingly adopting variable compensation schemes with performance bonuses to balance fixed costs and maintain salary competitiveness.
What are the main additional deductions I can apply to reduce my income tax?
In addition to the fixed deduction of 7 UIT, dependent workers can deduct up to 3 additional UIT for certain expenses, provided they are supported by electronic receipts registered with your RUC or DNI. These expenses include: property rental (30% of the rent), medical and dental fees (30%), fourth category services from various professionals (30%), EsSalud contributions for domestic workers (100%), and mortgage loan interest for first homes (100% up to 3 UIT). It is essential to request electronic receipts and verify that they are correctly registered in the SUNAT portal for these deductions to be valid.
How does labor cost in Peru compare with other Latin American countries?
Peru has a moderate labor cost within the Latin American context. For an employer, the total cost per worker includes approximately an additional 45-50% of the gross salary (considering bonuses, CTS, EsSalud, and other benefits). This percentage is similar to Colombia (49%) and Chile (45%), but lower than Brazil (70-75%) and Argentina (55-60%). However, it is higher than Mexico (35%). This cost structure makes Peru moderately competitive in the region for attracting foreign investment, especially in labor-intensive sectors. Global services and technology sectors find in Peru an interesting combination of qualified talent and reasonable costs, particularly outside Lima.
What are the emerging salary trends in Peru for 2025?
The main trends include: 1) Greater adoption of hybrid work schemes with compensation adjusted according to location, 2) Increase in the salary gap between highly specialized workers (especially in technology, data science, and digital transformation) and operational positions, 3) Growth of non-monetary and wellness benefits as an important part of the compensation package, 4) Freelance or project-based work schemes for specialized professionals, allowing higher income but less stability, 5) Adoption of more transparent profit-sharing schemes in fast-growing companies, and 6) Greater salary transparency driven by regulations and social pressure, reducing discriminatory gaps. Companies are adopting more flexible and personalized compensation policies to retain key talent.
How do EPS (Health Provider Entities) contributions work and what is their impact on net salary?
EPS are a complement to the EsSalud service that offers care in private clinics. The employer can allocate up to 25% of their EsSalud contribution (equivalent to 2.25% of the salary) to an EPS, and the worker contributes an additional percentage (typically between 2.5% and 3%) deducted directly from their gross salary. This additional contribution does affect the net salary, but provides access to higher quality private health services with shorter waiting times. Family plans can include dependents at an additional cost. The EPS contribution can be considered a deductible expense for income tax calculation, which partially mitigates its impact on the net salary. For middle-high income employees, the benefit in quality of care usually compensates for the additional cost.
What is the impact of labor informality on salaries in Peru?
Labor informality, which affects approximately 65% of Peruvian workers, has a significant impact on the salary market. Informal workers earn on average 40% less than their formal counterparts in similar positions and do not receive benefits such as bonuses, CTS, health insurance, or pension contributions. This widespread informality puts downward pressure on formal sector wages, especially in low-skilled positions. Reducing informality is one of Peru's main economic challenges, as its persistence limits productivity growth, reduces tax collection, and perpetuates inequality. For 2025, public policies are expected to continue focusing on labor formalization, especially in sectors such as retail trade, agriculture, and construction.
Net Salary Calculation Method in Peru
Our calculator uses the following methodology to determine your net salary:
- Determine the annual gross income: Monthly salary × 12 + Bonuses (if applicable) + CTS (if applicable)
- Calculate pension system contributions:
- ONP: 13% of the monthly gross salary (does not apply to bonuses)
- AFP: Between 12.7% and 13.04% of the monthly gross salary, depending on the selected AFP (does not apply to bonuses)
- Determine the taxable base for Income Tax:
- Annual gross salary (without bonuses) - Pension system contributions
- Subtract the fixed deduction of 7 UIT (S/ 37,450 for 2025)
- Subtract additional deductions (up to 3 UIT) if applicable
- Calculate Income Tax applying progressive rates:
- 8% for the portion up to 7 UIT (S/ 37,450)
- 14% for the portion between 7 and 12 UIT (S/ 37,451 - S/ 64,200)
- 17% for the portion between 12 and 27 UIT (S/ 64,201 - S/ 144,450)
- 20% for the portion between 27 and 42 UIT (S/ 144,451 - S/ 224,700)
- 30% for the portion above 42 UIT (more than S/ 224,700)
- Calculate the monthly net salary:
- Monthly gross salary - Pension system contribution - (Annual Income Tax ÷ 12)
- Calculate the total annual net income:
- Monthly net salary × 12 + Net bonuses (if applicable) + CTS (if applicable)
This methodology complies with current Peruvian tax and labor regulations, considering projections for the 2025 fiscal year.
Salary Perspectives for Peru in 2025
The Peruvian salary landscape for 2025 is characterized by moderate but sustained growth, with a focus on post-pandemic economic recovery. Export, technology, and financial services industries will continue to lead in terms of salary levels, while the most affected sectors such as tourism and entertainment will seek to recover their capacity to generate quality employment.
The salary gap between Lima and provinces, although persistent, shows signs of gradual reduction thanks to decentralized economic growth and the adoption of remote work. This trend represents an opportunity for professionals seeking to balance quality of life and income level in emerging cities such as Arequipa, Trujillo, and Piura.
Public policies focused on formalization, along with private initiatives to improve labor productivity, will be key factors in determining the evolution of salaries in the coming years. Strengthening digital skills, language proficiency, and management capabilities will continue to be important differentiators for accessing better salary conditions in an increasingly competitive labor market.