The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
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.
- The Office of Social Security Normalization is responsible for the functioning of the overall social security system.
- 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.
- In Peru, many private companies provide a range of compensations and benefits to employees, including private pensions, medical cover, life, and disability cover.
- Flexible benefits, ranging from the purchase of an additional holiday entitlement to full family medical cover, are gaining popularity among employees in Peru, with options on how they wish to utilize their benefits allowances.
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 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 Peru.
- Assess Peru’s 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 Peru’s employee benefits, and their impact on companies.