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The right to vacation is designed to allow workers to recover from the demands of work throughout the year, which in turn boosts productivity and reduces absenteeism. In Peru, the law clearly states that workers with more than one full year of service are entitled to 30 calendar days of paid vacation for each year of work. Pay during this period must be equal to what the worker normally receives, including benefits such as family allowances, if applicable.
In addition, Peruvian law allows vacation time to be split into separate periods, although certain conditions apply. For example, an employee may agree with the employer to divide their 30 days into two or more periods, provided that at least one of those periods consists of no fewer than 15 consecutive days. This facilitates personal and family planning, accommodating the employee’s needs without affecting the company’s operations.
On the other hand, a reduction in vacation time is an exception that applies in specific cases, such as when an employee has worked for less than one year or has taken unpaid leave. In these cases, compensation is calculated in proportion to the actual time worked, while always complying with the legal minimums.
It is essential that companies properly manage vacation time through the electronic payroll system and PLAME, recording periods of leave and ensuring compliance with the law to avoid penalties from SUNAFIL. Effective management of this right also contributes to employee satisfaction and talent retention in Peruvian organizations.
In the next section, we'll take a closer look at how vacation time is calculated and provide practical examples for companies in Lima and other regions of Peru.
The right to vacation in Peru is primarily governed by the Consolidated Text of Legislative Decree 728, approved by Supreme Decree 003-97-TR. Under this regulation, every worker subject to the private-sector labor regime is entitled to 30 calendar days of vacation leave for each full year of service. This right is inalienable, and its purpose is to allow workers to recover physically and mentally.
The law stipulates that vacation time must be granted within the year following the completion of a year of service, thereby ensuring that the employee can take this time off within a reasonable period. In addition, the employer is required to pay the employee for vacation time before the vacation period begins, as recorded on the payroll.
If an employee has not taken his or her vacation within the legally prescribed time frame, the employer must pay compensation equal to twice the pay corresponding to the days not taken. This protects the employee and encourages compliance with the law.
Peruvian law allows vacation time to be split into segments, provided that one portion consists of a minimum of 15 consecutive days off and the remainder can be divided into shorter periods, by mutual agreement between the employer and the employee. This arrangement makes it easier to accommodate the needs of both parties, especially in companies with high employee turnover or seasonal fluctuations.
However, reducing the number of vacation days is prohibited, except in special and justified cases such as collective bargaining agreements or specific provisions, provided that the legal minimum of 30 calendar days is always respected. Any unilateral reduction by the employer may constitute a violation punishable by SUNAFIL.
Finally, it is essential that employers correctly record vacation periods in the Electronic Payroll System, using the T-Registro form for new hires, terminations, and modifications, and filing monthly reports through PLAME, thereby ensuring transparency and compliance in labor management.
For further guidance on properly managing vacation time and other employee benefits at your company, please review our human resources consulting and payroll outsourcing services.
All workers subject to the private-sector labor regime in Peru are entitled to paid vacation, including those with indefinite-term, fixed-term, and part-time contracts (provided they meet the minimum required number of hours). This also applies to workers at small and medium-sized enterprises, although special regulations may apply to microenterprises and other sectors; therefore, it is always advisable to review the applicable regulations in each case.
To be eligible for vacation time, an employee must meet the minimum service requirement established by law: having worked at least 260 days in the calendar year (or the proportional portion if the year was not completed). Days of unexcused absences may be deducted when calculating this period.
It is important to note that the law stipulates that vacation time consists of a minimum period of 30 consecutive calendar days, which should preferably be granted as a continuous period to ensure effective rest. However, the employer and the employee may agree to split this period, provided that the nature of the rest is not affected.
Splitting vacation time is permitted under certain conditions and is generally used to tailor time off to the needs of both the employee and the company. For example, an employee may request to split their 30 days into two periods—such as 15 days at one time and the other 15 at another—provided there is mutual agreement and the right to time off is respected.
As for the reduction of vacation time, this applies only in exceptional cases established by law or through collective bargaining agreements. For example, in micro-enterprises or sectors with special regulations, there may be an agreement to reduce the number of vacation days, but never below the legal minimum without the express authorization of the Ministry of Labor and Employment Promotion (MTPE).
Companies must accurately record vacation time granted in the Electronic Payroll System and reflect it on the pay stub to ensure transparency and regulatory compliance. It is also essential to inform employees in advance of their vacation dates to avoid labor disputes and penalties from SUNAFIL.
In Peru, vacation time is 30 calendar days for each full year of service. This means that employees are entitled to one month of paid time off, without any impact on their monthly pay or social benefits such as the CTS, bonuses, family allowances, and others. This right is provided for in Title III of the Consolidated Text (TUO) of Legislative Decree No. 728 (D.S. 003-97-TR), which regulates labor relations in the country.
The timing of the break must be coordinated between the employer and the employee, striking a balance between the needs of the business and the employee’s rights. The law provides that, in the event of a disagreement, the employer may set the date, but must give reasonable advance notice to avoid conflicts and ensure proper staffing plans.
In practice, many Peruvian companies develop an annual vacation schedule in coordination with their employees, especially in sectors where operational continuity is critical, such as manufacturing, retail, and services. This schedule facilitates internal organization and allows employees to plan their time off in advance, improving the work environment.
Peruvian law allows vacation time to be divided into shorter periods, provided there is an agreement between the employer and the employee and the right to take the full 30 days is respected. This is especially useful in companies that need to maintain continuous operations and cannot do without their entire staff at the same time.
However, employers are not permitted to unilaterally reduce vacation time, as this is an inalienable right of the employee. Any agreement to split vacation time must be documented, ideally through the T-Registro or in internal documents, to avoid future disputes.
Furthermore, the law does not allow for the indefinite accumulation of vacation time. If an employee does not take their vacation, the employer must encourage them to do so in order to avoid subsequent compensatory payments that could result in additional costs.
Peruvian law allows vacation time to be split up; in other words, an employee is not required to take all 30 days consecutively. According to the Consolidated Text (TUO) of Legislative Decree 728 (D.S. 003-97-TR), the vacation period may be divided, provided there is an agreement between the parties and the first period is no less than seven calendar days. The remainder may be divided into periods of no less than one calendar day.
This mechanism offers significant flexibility for both the employer and the employee, as it allows vacation time to be tailored to the employee’s personal, family, or health needs, as well as to the company’s operational demands. For example, at a company in Lima that needs to maintain a minimum staff level throughout the year, splitting vacation time allows employees to take part of their vacation in continuous blocks and the rest on individual days, thereby avoiding prolonged interruptions in production.
For example, an employee in Arequipa could take 15 days of vacation in July—which is a long enough continuous period for a restful break—and then spread the remaining 15 days in minimum one-day increments throughout September, October, and November, as shown in the table below.
| Period | Days taken | Type of subdivision |
|---|---|---|
| July | 15 | Continuous rest |
| September | 7 | Second minimum period |
| October | 3 | Individual days |
| November | 5 | Individual days |
| Total | 30 |
This policy complies with current regulations and facilitates a healthy work-life balance, ensuring that employees do not lose their rights and that the company does not face penalties for noncompliance. Additionally, it is important to remember that vacation time cannot be compensated with money, except in cases of termination of employment, according to Legislative Decree 728.
Under Peruvian law, the vacation period may be reduced in certain cases, primarily when an employee does not meet the minimum number of days worked (260 days worked per year). In such cases, the employee is entitled to a proportional amount of time off, calculated based on the number of days actually worked.
For example, if an employee worked only 195 days during the year because they started in the middle of the year, they are granted a proportional portion of vacation time (in this case, 15 days).
The reduction may also result from unexcused absences, unpaid leave, or from employees who joined or left the company during the year. The calculation must be made in accordance with the proportion established by law and must be properly documented in the electronic form and in the company’s internal records.
It is important to note that this reduction does not affect other employee benefits, such as severance pay (CTS) or bonuses, which are calculated based on compensation and do not depend directly on the vacation period.
To avoid conflicts with SUNAFIL or labor disputes, companies must:
This ensures compliance with the Consolidated Text (TUO) of Legislative Decree 728 and protects both the employer and the employee, thereby avoiding administrative penalties and potential lawsuits for wrongful termination or labor law violations.
Finally, it is recommended that companies seek specialized advice on payroll management and regulatory compliance—such as that offered by Wiseplan—to optimize their processes and ensure proper management of vacation time and other employee benefits.
During the vacation period, an employee is entitled to receive his or her usual pay—the same amount he or she would have received had he or she worked. This pay must include all fixed and variable components that the employee regularly receives, such as family allowances, regular overtime pay, and fixed commissions, among others.
It is important to note that vacation pay cannot be less than the current minimum living wage (RMV). For example, as of October 1, 2026, the RMV is S/ 1,230 (Supreme Decree No. 015-2026-TR, El Peruano, September 28, 2026), so any calculation must comply with this minimum.
Payment of vacation pay must appear on the pay stub for the corresponding month and be properly reported on the Electronic Payroll Form (PLAME). In addition, the employer must correctly record the information in T-Registro, which is SUNAT’s system for hiring and terminating employees. Failure to make this payment or incorrect reporting of it may result in penalties from SUNAFIL, the agency responsible for overseeing labor compliance.
Practical example: If an employee earns the minimum wage (S/ 1,230 as of October 2026) and is entitled to a family allowance (S/ 123), their vacation pay will be S/ 1,353 for the month of vacation. If they receive other regular payments, these must also be included to ensure a complete and fair payment.
To avoid common mistakes, companies should have a systematic process in place for recording and calculating these payments, ensuring compliance with current regulations and avoiding penalties. If you have any questions, it is advisable to consult a payroll management specialist or the Ministry of Labor and Employment Promotion (MTPE).
When an employee leaves before completing one year of service, he or she is entitled to payment for unused vacation time—that is, financial compensation for the time worked but not taken as vacation. This payment is calculated on a pro-rata basis according to the number of full months worked.
For example, if an employee worked for 8 months and leaves the company, he or she will be entitled to 8/12 of the vacation pay. This amount must be included in the settlement of employee benefits and reported on the Electronic Payroll Form (PLAME), thereby ensuring compliance with SUNAT and facilitating labor audits.
It is important to note that vacation pay is calculated based on the employee’s most recent monthly pay, including variable pay that forms part of their computable salary, such as family allowances or regular bonuses. In addition, if the employee receives bonuses, these must be taken into account when calculating pro-rated vacation pay for partial vacation periods.
Compensation for unused vacation time is payable even in the event of wrongful termination, voluntary resignation, or any other form of termination. Failure to make this payment may result in penalties from SUNAFIL or the Ministry of Labor and Employment Promotion (MTPE), which may order immediate payment and impose fines on the noncompliant company.
In practice, many companies in Lima and other regions of Peru choose to keep strict track of hours worked and accrued vacation time to avoid legal issues. For example, in sectors such as manufacturing or retail, where employee turnover is high, the correct payment of partial vacation time is essential for maintaining good labor relations and avoiding administrative penalties.
Finally, we recommend that human resources departments and management periodically review their processes for calculating and paying employee benefits—including partial vacation pay—to comply with current regulations and avoid labor disputes that could affect the company’s reputation and operations.
Peruvian law establishes that vacation time is a non-waivable right. However, in practice, there may be cases where vacation time is not taken due to operational needs or by mutual agreement between the parties. In such cases, the company must pay triple compensation: one portion for the work performed, another for the unused vacation time, and a third as compensation.
This payment is mandatory and must be recorded on the payment slip and in the electronic form. SUNAFIL monitors compliance with this payment and may impose penalties in the event of noncompliance.
Recommendation: Companies should keep careful track of each employee's vacation balance to prevent excessive accrual and the risk of penalties.
Efficient management of employee vacations in Peru requires a clear system for monitoring, tracking, and communication. Here are some practical recommendations for companies in Lima and other regions:
For companies with high employee turnover or operations in multiple regions, it is advisable to consider utilizing specialized payroll outsourcing or human resources consulting services to ensure regulatory compliance and administrative efficiency.
SUNAFIL is the agency responsible for enforcing compliance with Peru's paid vacation laws. In the event of noncompliance, companies may be subject to fines that vary depending on the size of the company and the severity of the violation. Penalties may include:
To avoid these risks, it is essential to maintain up-to-date records, comply with regulations, and respond in a timely manner to requests from SUNAFIL and the MTPE. In the event of disputes, companies may require specialized labor legal defense services.
Peruvian law grants 30 calendar days of vacation for each full year of service to workers in the private sector. This right is inalienable and must be recorded in the electronic payroll system.
Yes, splitting the leave is possible if the employer and employee agree. The first period must be at least seven calendar days, and the remainder may be divided into periods of at least one day.
If an employee does not take his or her vacation, the company must pay triple compensation: for the work performed, for the unused vacation time, and an additional compensation payment. This must be recorded on the pay stub and in the electronic payroll system.
Unused vacation time is calculated on a pro-rata basis based on the number of full months worked when an employee leaves before completing one year of service. The amount must be included in the final pay statement and reported on the electronic payroll form.
SUNAFIL and the Ministry of Labor and Employment Promotion (MTPE) are the agencies responsible for enforcing compliance with vacation leave regulations in Peru. They may impose penalties in the event of noncompliance.
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