Employee Profit Sharing

Understanding the intricacies of each country is extremely important when growing your business internationally. Almost all countries in Latin America have more generous labor legislation than Western countries including Australia. Peru is no different. Profit Sharing can have a substantial impact on the finances of a growing business which is why we always advise clients to understand their obligations and if needed, create a strategy to manage the impact.

The right of employees to receive a share in the employer's net profits is a benefit covered by Peruvian Constitution¹ and developed through several employment-related legal provisions².

The following conditions apply regarding the right of the employees to have a share in the profits of a company: