Salary Policy: Guidelines for Objective Compensation Management

A Salary Policy is not an optional management tool, but rather a corporate obligation derived from the current regulatory framework on equal pay that is applicable to all companies, regardless of size, industry, or number of employees.

Law No. 30709 and its Regulations impose on employers the duty to structure compensation systems based on objective, reasonable, and verifiable criteria. In that sense, a Salary Policy serves as the instrument through which employers comply with said legal mandate.

In recent years, this matter has been specifically verified by the National Superintendency of Labor Inspections (Superintendencia Nacional de Fiscalización Laboral or SUNAFIL), particularly through inspection campaigns focused on equal pay and compliance with formal obligations.

From this standpoint, it is important to identify the minimum elements that a Salary Policy must include in order to be considered legally valid and sustainable:

 

1. Criteria supporting the Salary Policy

A Salary Policy must be structured based on objective, measurable, and documented criteria that allow to reasonably explain how compensation is determined, reviewed, and modified within the organization.

In line with this regulatory approach, the starting point is the existence of a clear organizational structure, typically reflected in a Job Classification and Functions Chart or in job valuation systems.

However, the key element not only lies in the formal existence of such documents, but also in the consistency between the organization structure and the compensation decisions effectively implemented. In other words, the Salary Policy must be consistently applied and traceable in the event of an inspection.

 

2. Salary Differences: Permissible Criteria and Legal Limits

Peruvian labor laws do not prohibit salary differences, even among employees performing similar roles, provided that such differences are based on objective and reasonable criteria. The regulations recognize, among others, the following valid criteria:

  • Length of services.
  • Performance.
  • Work experience.
  • Academic or educational background.
  • Scarcity of qualified labor.
  • Place where services are provided.

This list is not restrictive; however, it provides guidance for businesses. From a technical standpoint, what matters is that the criterion used is objective, proportionate, and applied consistently.

Conversely, compensation differences based directly or indirectly on discriminatory factors, such as gender, pregnancy, maternity or paternity, among others, are prohibited.

 

3. Obligation to disseminate the Salary Policy

A key aspect, frequently reviewed during inspections, is the obligation to disseminate the Salary Policy among employees. This obligation applies in the following situations:

  • Upon the employee’s hiring.
  • When there is a change in job category.
  • When changes are made to the applicable compensation scheme.

It should be noted that complying with this obligation does not involve disclosing individual salaries, but rather informing employees of the general criteria governing compensation management, thereby reinforcing internal transparency and predictability.

 

Important Information

It is important to remember that, together with the Salary Policy, companies are also required to internally implement a Job Classification and Functions Chart, a mechanism used to evaluate and organize positions based on objective criteria.

 

Key Considerations

The failure to have a Salary Policy duly structured and disseminated may be classified by SUNAFIL as a very serious labor law infraction, which may result in penalties ranging from 2.63 to 52.53 tax units (i.e., approximately PEN 14,465.00 to PEN 288,915.00).

Beyond the risk of penalties, practical experience shows that organizations without a Salary Policy in place face greater challenges to support compensation decisions, manage internal conflicts, and respond to labor inspections.

In that sense, having specialized advisory not only ensures regulatory compliance but also supports the design of Salary Policies aligned with internal equal pay criteria, competitiveness, and organizational sustainability.

At BDO Servicios Legales y Laborales S.A.C., we have a specialized labor law team providing comprehensive support to each organization.

For further information or assistance, please contact us via email at servicioslegales@bdo.com.pe.

 
Contact Us