Peru: 2026, Looking Ahead

The following are labour-related matters in Peru to watch out for in 2026.

1. Slow progress in the growth of formal employment

At the end of 2025, there is a slight increase in formal employment at the national level (approximately 5%), mainly due to the greater dynamism of the services, trade, and agricultural sectors. The trend is likely to continue in 2026, with the natural expectation of investors for the change of our authorities. The great pending task: issuance of public policies to combat labour informality (approximately 70%).

2. Anti-technical bills

The year 2025 has been characterised by the discussion in the Congress of the Republic of populist bills such as the increase in the percentage of profit sharing to electricity companies, the withdrawal of contributions from the national pension system, among others, and some that came to materialize in laws such as the withdrawal of CTS funds until 31 December 2026 or the eighth withdrawal of the funds accumulated in the AFPs. We predict that with the outgoing Congress the trend will continue. Hopefully, things will change, but it is doubtful.

3. Reform of the New Labour Procedural Law

In 2025, various bills have been discussed aimed at reforming the labour process, incorporating processes for the protection of fundamental labour rights, and an order for payment procedure that aims to be faster than the current ones. Probably in 2025, some proposed changes will come to light. Hopefully, they will come with enough budget to assure their effectiveness.

4. Increase in activity of the National Superintendence of Labor Inspection (SUNAFIL)

With low resources due to mistaken political decisions, SUNAFIL has been covering its operational gap through the mass sending of inductive letters to employers urging them to comply with certain labour and occupational safety and health (OSH) obligations, such as setting up an OSH committee, training staff annually, incorporating staff into the payroll, implementing a lactation room, implementing and communicating the salary policy, among others. We believe that in 2026, the trend will be similar.

5. Uncertainty and labour rigidity

We close the year with a criticizable ruling of the Constitutional Court that validates the restriction on outsourcing imposed by D.S. 001-2022-TR and its discussion in the Supreme Court through a process of popular action. This anxiety worries the businessman, the investor, so we hope that in the remaining weeks or at the beginning of 2026, the discussion will be settled.

2025 has been characterised by the issuance of controversial pronouncements on labour matters that seek to change the existing rules, such as the case of the withdrawal of confidence, the contradiction between the two Chambers of the Supreme Court that resolve labour cases in the private sector on similar issues, or different criteria of second instance Judges of different Superior Courts of the country,  which generates lack of legal certainty and labour rigidity. The trend is likely to continue in 2026.

6. Salary increase in the public sector

After the signing of the Centralized Collective Agreement 2025-2026, a salary increase for public employees is contemplated from 2026.