Severance pay in Peru 2026: notice, severance and unemployment benefit
When a job ends in Peru, the calculator above estimates the statutory severance pay, the notice period, the payment for unused leave and the unemployment benefit, with the tax on each part. Below you will find the rules in brief and examples for different lengths of service.
The rules in brief
- Arbitrary dismissal: An employer may dismiss only for a just cause related to conduct or capacity. Without one, an employee on an open-ended contract receives 1.5 months’ pay for each full year of service (pro rata for months), at most 12 months’ pay, tax-free. You also keep your CTS fund and receive the unpaid part of the bonuses and holiday pay.
Example: PEN 3,000 gross a month
| Years of service | Severance, net (PEN) | Notice period |
|---|---|---|
| 1 | 4,500 | No notice: the employer needs a just cause (you give 30 days to resign) |
| 2 | 9,000 | No notice: the employer needs a just cause (you give 30 days to resign) |
| 3 | 13,500 | No notice: the employer needs a just cause (you give 30 days to resign) |
| 5 | 22,500 | No notice: the employer needs a just cause (you give 30 days to resign) |
| 10 | 36,000 | No notice: the employer needs a just cause (you give 30 days to resign) |
| 15 | 36,000 | No notice: the employer needs a just cause (you give 30 days to resign) |
| 20 | 36,000 | No notice: the employer needs a just cause (you give 30 days to resign) |
| 25 | 36,000 | No notice: the employer needs a just cause (you give 30 days to resign) |
Case: “Dismissed without just cause”, leaving on 31 December 2026, without unused leave. These are legal minimums; a contract or collective agreement may give more.
What you receive: an example
With 9.8 years of service and 10 days of unused leave, ending on 31 December 2026:
| Item | Gross (PEN) | Net (PEN) |
|---|---|---|
| Compensation for arbitrary dismissal (1.5 months’ pay per year, at most 12; not taxed) | 36,000.00 | 36,000.00 |
| Unused leave (5 days) | 807.69 | 648.28 |
| Total | 36,807.69 | 36,648.28 |
Frequently asked questions
How much severance do I get after 10 years in Peru?
About PEN 36,000 net with PEN 3,000 gross a month, for “Dismissed without just cause”. The notice period is No notice: the employer needs a just cause (you give 30 days to resign).
How long is the notice period?
In the example: No notice: the employer needs a just cause (you give 30 days to resign), whatever the length of service. A contract can require more.
Are these amounts exact?
They are estimates of the legal minimum under the 2026 rules. Your contract, a collective agreement or a court decision can give more.
Rules and official sources: see “Rules applied (2026)” above. Last checked: October 2026. The amounts are estimates for information, not financial or legal advice.