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Understanding Statutory Gratification Billing in Peru

In Peru, employees are entitled to statutory gratifications, which are typically paid twice a year, in July and December. To ensure your payroll billing remains accurate and transparent, we follow a billing process designed to align with Peruvian payroll requirements.

Why Gratification Amounts Are Not Included in Employee Profiles

You may notice that statutory gratification amounts are not displayed in an employee's permanent profile. This is because the final gratification amount is determined based on payroll information available at the time of payment and may vary from earlier estimates. To avoid inaccurate billing forecasts, these amounts are not stored as permanent profile values. Instead, you are billed only after the final payroll amounts have been calculated.

Our Billing Process for Peru

To maintain accurate billing and prevent duplicate charges, we use the following approach for statutory gratifications in Peru:

  • Monthly Provisioning: The estimated cost of statutory gratification is billed monthly as part of the Employer Burden.

  • No Double Billing: Since the obligation is funded through the monthly provision, the actual gratification payment made in July and December is not billed again.

  • Adjustments: If the final payroll calculation differs from the amount previously provisioned, the difference is processed as a regularization (a retroactive charge or credit) on the following month's invoice. This ensures your billing reflects the final payroll amounts accurately.

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