Peru Arbitrary Dismissal Indemnity Calculator
Peru · EmploymentCalculate the arbitrary dismissal indemnity in Peru, general private labor regime, for indefinite-term and fixed-term contracts, with the 12-compensation cap. This is a different calculation from the social benefits final settlement.
How is it calculated?
Indefinite-term contract: 1.5 monthly ordinary compensations for each full year of service; fractions are paid in twelfths (months) and thirtieths (days). Fixed-term contract: 1.5 compensations for each month remaining until the contract's expiration. In both cases the maximum is 12 compensations. It requires having passed the probationary period. Ordinary compensation is the fixed monthly compensation (including the family allowance and regular payments). The arbitrary dismissal indemnity does not include CTS, the bonus, or vacation: those benefits are calculated in the final settlement. Determining whether the dismissal was arbitrary (and whether another path such as reinstatement applies) requires a judge's or lawyer's assessment: the calculator only estimates the amount. This is a rough estimate, not an official calculation.
Examples
Indefinite-term contract: hired 01/01/2022, dismissed 06/30/2026, compensation of 3,000
4 years and 6 months: 6.75 compensations. Estimated indemnity: 20,250.
Fixed-term: expired 12/31/2026, dismissed on 06/30/2026
6 months remaining: 9 compensations. Estimated indemnity: 27,000.
How the arbitrary dismissal indemnity is calculated
In an indefinite-term contract it's 1.5 compensations per full year of service; in a fixed-term one, 1.5 compensations for each month remaining until expiration. In both cases the maximum is 12 compensations.
It requires having passed the probationary period. Whether the dismissal was arbitrary is determined by a judge or a labor proceeding; the calculator only estimates the amount.
| Contract type | Formula | Cap |
|---|---|---|
| Indefinite term | 1.5 compensations per full year; fractions in twelfths and thirtieths | 12 compensations |
| Fixed term | 1.5 compensations for each month remaining until expiration | 12 compensations |
The indemnity and the final settlement are not the same
The arbitrary dismissal indemnity is added to the benefits you were already owed: CTS, the bonus, and pending vacation are paid in the social benefits final settlement.
Sources
- MTPE / SUNAFIL (Peruvian labor authorities) — Private labor regime social benefits: CTS, bonuses, vacation, overtime, and arbitrary dismissal — in effect since January 1997 · reviewed on September 25, 2026