Employee Benefits in Peru 2024

Employee Benefits in Peru 2024

Summary

The report provides in-depth industry analysis, information, and insights of the employee benefits in Peru, including an overview of the state and compulsory benefits in Peru, detailed information about the private benefits in Peru, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Peru.

The social security system in Peru is still undergoing significant change, with low social security contributions due to the informal nature of the labor market as most of the workers are self-employed and lack information and valuation within the system. In the early 1990s, during the country’s financial crisis and the near-collapse of the Shistema Nacional de Pensiones (state-run pension system or SNP), the social security system introduced the Sistema Privado de Pensiones (private pension system, or SPP) to offer benefits in the event of old age, disability, and death. The SPP is administered by private entities - Administradora de Fondo de Pensiones (pension fund administrators, or AFP). The SNP functions as a defined-benefit (DB) system and the SPP functions as a defined contribution (DC) system. The participation of private health contractors was promoted through a complementary scheme, under the supervision of the then Superintendent of Health Service Company (SEPS). Comprehensive Health Insurance (SIS) was introduced in 2002 to provide universal coverage for essential health services and income security to nationals. Peru enacted the Law of Universal Health Insurance in 2009. Later, Act No. 29792 created the Ministry of Development and Social Inclusion (Ministerio del Desarrollo e-Inclusion Social, MIDIS) on October 20, 2011. Private employee benefits are also slowly gaining popularity in the country.

Key Highlights

• The Social Health Insurance (El Seguro Social de Salud del Peru - EsSalud), Comptroller General of the Republic - CGR (Contraloría General de la República), The SBS (La Superintendencia de Banca, Seguros y AFP), and The National Superintendent of Tax Administration - SUNAT (La Superintendencia Nacional de Aduanas y de Administración Tributaria) are responsible for the functioning of the overall social security system.
• A person’s national insurance contribution is determined based on their income.
• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to credited contribution.
• In Peru, employers provide voluntary retirement benefits to their employees through occupational pension schemes.

Scope

This report provides a detailed analysis of employee benefits in Peru -

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits
• It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen's compensation insurance, maternity and paternity benefits, family benefits, unemployment, leaves and holidays and private benefits
• It highlights the economic and regulatory situations relating to employee benefits in Peru

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country
• Assess employee benefits of the market, including state and compulsory benefits and private benefits
• Gain insights into the key employee benefit schemes offered by private employers in the country
• Gain insights into key organizations governing employee benefits market, and their impact on companies