Peru’s Private Sector Workers Anticipate Annual Profit-Sharing Payments
Private sector employees in Peru are preparing to receive their annual profit-sharing payments, known as “utilidades,” between March and May of this year. This benefit, enshrined in the Peruvian Constitution and regulated by Decree Law 892, allows workers to participate in the financial success of the companies they contribute to. The upcoming distribution of these funds is a significant economic event for many Peruvian families, providing a financial boost for unexpected expenses or future savings.
According to legislation, the payments are available to formal workers in the private sector whose companies generate third-category income, employ more than 20 people, and have recorded profits during the relevant fiscal year. Not all workers are eligible; independent contractors issuing receipts for services and those employed by micro-enterprises with fewer than 20 employees are excluded.
To determine eligibility, employees must have been on the company payroll during the 2025 fiscal year, regardless of their current employment status. Companies are legally obligated to distribute a portion of their net annual profit among qualifying employees.
The timing of the payments is typically between March and May, but the exact date varies by company. The distribution of “utilidades” is a legally mandated benefit, and employers must comply with the regulations outlined in the law.
Further information regarding the payment process and eligibility criteria can be found here and here. Details on calculating estimated payments are available here.
The announcement of the upcoming payments comes as companies finalize their financial results for 2025. The distribution of profits is expected to provide a welcome economic stimulus for Peruvian households.
