How take-home pay works in Peru
If you are on a formal payroll in Peru’s private-sector regime — as a local hire or an expat with a work contract — two deductions come out of your gross salary. The first is the pension contribution: either the public system (ONP, a flat 13%) or a private pension fund (AFP, roughly 12.8% to 13.1% depending on the fund and commission type). The second is the fifth-category income tax withholding, which your employer retains monthly whenever your projected annual employment income exceeds 7 UIT (the tax reference unit). Health insurance (EsSalud, 9%) is paid by the employer on top of your salary, so it never reduces your net pay.
Workers with children under 18 also receive a family allowance of S/ 113.00 per month (10% of the minimum wage). It is a fixed amount per worker — it does not multiply per child — and it counts as regular remuneration, so the calculator adds it to the base before applying deductions.
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2026 figures used by this calculator
| Item | 2026 value |
|---|---|
| UIT (tax unit) | S/ 5,500 (Supreme Decree 301-2025-EF) |
| Standard deduction | 7 UIT = S/ 38,500 per year |
| Minimum wage (RMV) | S/ 1,130 |
| Family allowance | S/ 113.00 per month |
| ONP contribution | 13% of gross pay, no cap |
| AFP mandatory contribution | 10%, no cap |
| AFP insurance premium | 1.37%, applied up to S/ 12,672.65 of pay (SBS, Jul-2026) |
| AFP flow commission | 1.47% (Habitat) to 1.69% (Profuturo) |
| AFP mixed commission | only 11.37% deducted from pay |
Income tax brackets on annual net income (income minus 7 UIT):
| Annual taxable income | Rate |
|---|---|
| Up to 5 UIT (S/ 27,500) | 8% |
| Over 5 and up to 20 UIT (S/ 110,000) | 14% |
| Over 20 and up to 35 UIT (S/ 192,500) | 17% |
| Over 35 and up to 45 UIT (S/ 247,500) | 20% |
| Over 45 UIT | 30% |
The projection multiplies your monthly pay by 14, because Peruvian employees receive two extra statutory bonus salaries (gratificaciones) in July and December. Those bonuses are exempt from pension contributions but fully subject to income tax.
Worked example
Gross salary of S/ 10,000, affiliated to AFP Habitat (1.47% flow commission), no family allowance:
- AFP deduction: 10% + 1.37% + 1.47% = 1,000.00 + 137.00 + 147.00 = S/ 1,284.00
- Income tax: projected annual income = 10,000 × 14 = 140,000; taxable = 140,000 − 38,500 = 101,500
- First 27,500 taxed at 8% = 2,200.00; remaining 74,000 taxed at 14% = 10,360.00; annual tax = 12,560.00
- Monthly withholding ≈ 12,560 ÷ 12 = S/ 1,046.67
- Net monthly pay: S/ 7,669.33
Frequently asked questions
At what salary do I start paying income tax?
In 2026, with no income other than salary and the two statutory bonuses, withholding kicks in above roughly S/ 2,750 per month (2,750 × 14 equals the S/ 38,500 deduction). Below that, your only deduction is the pension contribution.
ONP or AFP — which takes more from my paycheck?
They are very close in 2026: ONP is a flat 13%, while AFPs with the flow commission deduct between 12.84% and 13.06%. If you are on the mixed commission, only 11.37% shows on your payslip, because the balance-based commission is charged to your accumulated fund instead.
Why does my payslip show a slightly different withholding?
This tool estimates withholding as annual tax ÷ 12. The official SUNAT method (art. 40 of the income tax regulations) uses month-dependent divisors (12, 9, 8, 5 and 4) and adds withholding on the July and December bonuses, so payslip amounts vary through the year and are trued up in December.
Do the July and December bonuses reduce my pension?
No. Gratificaciones and their extraordinary bonus are permanently exempt from AFP/ONP and EsSalud charges (Law 30334), but they are subject to income tax — that is why the annual projection uses 14 salaries.
Figures reflect the rules in force in 2026 (UIT, SBS premium table for July 2026). This is an informational estimate, not tax or labor advice: confirm with SUNAT, the SBS and the Ministry of Labor, and review the numbers every year because the UIT, minimum wage, premiums and commissions change.