Summary
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 of information and valuation within the system. In the early 1990s, during the country’s financial crisis and the near-collapse of the Sistema 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). The Comprehensive Health Insurance (SIS) was introduced in 2002 to provide universal cover 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.
The report provides in-depth industry analysis, information and insights of the employee benefits in Peru, including: 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.
Key Highlights
- The main state and compulsory benefits offered in Peru include old-age, survivor's, and long-term disability pensions; short-term sickness benefits; workmen’s compensation and occupational diseases; family benefits; maternity benefits; and medical care benefits.
- Private pensions, medical cover, life and disability cover are often given by many private organizations to employees.
- The participation of private health contractors was promoted through a complementary scheme, under the supervision of the SEPS.
- The MIDIS, the governing body of national policy that promotes development and social inclusion, was created by Act No. 29792 on October 20, 2011.
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, leave 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 Peru.
- Assess Peruvian employee benefits market, including state and compulsory benefits and private benefits.
- Gain insights into the key employee benefit schemes offered by private employers in Peru.
- Gain insights into key organizations governing Peruvian employee benefits, and their impact on companies.
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Table of Contents
1 EXECUTIVE SUMMARY
2 INTRODUCTION
2.1 What is this Report About?
2.2 Definitions
3 COUNTRY STATISTICS
4 OVERVIEW OF EMPLOYEE BENEFITS IN PERU
5 REGULATIONS
6 STATE AND COMPULSORY BENEFITS
6.1 Retirement Benefits
6.1.1 Introduction
6.1.2 Types of Retirement Plan
6.1.3 Eligibility
6.1.4 Age
6.1.5 Benefits
6.1.6 Payment Options
6.1.7 Employee and employer contributions
6.2 Death in Service
6.2.1 Introduction
6.2.2 Eligibility
6.2.3 Benefits
6.2.4 Payment Options
6.2.5 Employee and employer contributions
6.3 Long-Term Disability Benefits
6.3.1 Introduction
6.3.2 Eligibility
6.3.3 Benefits
6.3.4 Payment Options
6.3.5 Employee and employer contributions
6.4 Short-Term Sickness Benefits
6.4.1 Introduction
6.4.2 Eligibility
6.4.3 Benefits
6.4.4 Payment Options
6.4.5 Employee and employer contributions
6.5 Medical Benefits
6.5.1 Introduction
6.5.2 Eligibility
6.5.3 Benefits
6.5.4 Payment Options
6.5.5 Employee and employer contributions
6.6 Workmen’s Compensation Insurance
6.6.1 Introduction
6.6.2 Eligibility
6.6.3 Benefits
6.6.4 Payment Options
6.6.5 Employee and employer contributions
6.7 Maternity and Paternity Benefits
6.7.1 Introduction
6.7.2 Eligibility
6.7.3 Benefits
6.7.4 Payment Options
6.7.5 Employee and employer contributions
6.8 Family Benefits
6.8.1 Introduction
6.8.2 Eligibility
6.8.3 Benefits
6.8.4 Payment options
6.8.5 Employee and employer contributions
6.8.6 Taxation
6.9 Leave and Holidays
6.9.1 Annual leave
6.9.2 Public holidays
6.9.3 Maternity leave
6.9.4 Sick leave
7 PRIVATE BENEFITS
7.1 Other Benefits
8 APPENDIX
8.1 Methodology
8.2 Contact GlobalData
8.3 About GlobalData
8.4 GlobalData’s Services
8.5 Disclaimer
List of Tables
Table 1: Insurance Industry Definitions
Table 2: Peru - Country Statistics
Table 3: Peruvian Old-Age Pension - Percentage of the Insured’s Earnings
Table 4: Peruvian Retirement Benefits - Reference Salary
Table 5: Leave - Fixed National and Public Holidays
List of Figures
Figure 1: Peru - Main Institutions of Social Security System
