What is the Family Allowance in Peru?

The Family Allowance is a mandatory benefit in Peru, provided to all employees who have dependent children. It serves as additional financial support, equivalent to 10% of the national minimum wage, aimed at helping families cover the costs associated with raising children.

Who is Eligible for the Family Allowance?

Eligibility for the Family Allowance in Peru is determined by specific criteria:

• Employees with Dependent Children Under 18 Years of Age:

  • Any employee who has one or more dependent children under 18 is entitled to receive the Family Allowance.

• Employees with Dependent Children Over 18 Years of Age Pursuing Higher or University Studies:

  • Employees whose children are over 18 but are engaged in higher education or university studies continue to receive the Family Allowance until the child completes their education. This benefit can be extended for up to 6 years after the child reaches the age of majority (i.e., up to 24 years old).

• Employees with Dependent Children Over 18 Years of Age with Severe Disabilities:

  • Employees with children over 18 who have severe disabilities are also entitled to the Family Allowance. However, the disability must be duly certified according to the regulations of the National Health Authority. This allowance is not provided if the child is already receiving the Non-Contributory Pension for Severe Disability established by Law 29973.

How Much is the Family Allowance?

The Family Allowance is equivalent to 10% of the national minimum wage. As of 2024, the national minimum wage in Peru is set at 1,025 PEN per month, making the Family Allowance 102.5 PEN per month.

How is the Family Allowance Paid?

The Family Allowance is paid directly by the employer and is included as part of the employee’s regular salary. It is important that this allowance is reflected as a separate item on the employee’s payslip to ensure transparency.

How to Apply for the Family Allowance?

Employees need to provide documentation to prove their eligibility for the Family Allowance. The required documents may include:

• Birth certificates for dependent children under 18 years of age.
• Proof of enrollment in higher education or university for children over 18 who are continuing their studies.
• A certified medical report or disability certification from the National Health Authority for children with severe disabilities.

These documents are typically requested during the onboarding phase of employment.