PROFITS payment begins: how much money will you receive for your work?

Profits are the right of workers to receive profits for their work in the company, especially in times of economic uncertainty. After the conclusion of fiscal year 2023, many Peruvians are eagerly awaiting the date on which they will receive this extra income in their accounts.

It is widely known that the deadline established for making this payment is crucial, since otherwise it could have consequences for employers. Therefore, it is important to examine all the details related to the distribution of profits in the year 2024.

PROFITS: How are profits determined?

According to the information provided by the Government, these steps can be followed:

1. It begins by calculating the total amount of money that will be distributed among the workers.
2. A portion of profits is based on the days worked by each employee. The average value generated per day of work is determined and multiplied by the number of days worked. For example, if it is established that one day of work generates S/3 and 180 days have been worked, the resulting calculation for this part of the earnings would be S/540.
3. The other part is calculated based on the individual income of each worker. The total amount of money to be distributed is divided by the sum of the salaries of all employees and then multiplied by the annual income of each worker. For example, if the division results in 0.02 cents and an employee has earned S/27,000 during the year, the calculation for this part of the earnings would also be S/540.
4. Finally, both calculations are added to obtain the total profits. Following the previous example, the total profits would be S/1,080.

What companies are required to provide PROFITS?

According to Legislative Decree No. 892 and its related regulations, such as Supreme Decree No. 009-98-TR and Legislative Decree No. 677, guidelines are established for the fair distribution of profits among employees of the companies, in accordance with tax regulations.
For companies to be required to distribute profits, they must meet the following requirements:

1. Have obtained third category income.
2. Have a minimum number of employees: 21 workers on average during the fiscal year. Therefore, companies with 20 or fewer workers are exempt from this obligation.
3. Have generated profits during the corresponding fiscal period.

How often are earnings delivered?

Earnings are paid once a year, at the end of the fiscal year. Those employees who worked for the entire fiscal year will receive a higher amount compared to those who worked for less time. However, the payment of this benefit will be made in the following year.

What is the amount of earnings a worker can expect?

The calculation of the amount that a worker will receive as earnings is based on their salary from the last year and the time they have worked at the company. 50% is distributed according to the days worked, while the other 50% is determined according to the salary received.

The profit distribution rates, depending on the type of company, are as follows:

• Fishing companies: 10%
• Agricultural companies: 5% between 2021 and 2023; 7.5% between 2024 and 2026; and 10% from 2027 onwards.
• Telecommunications companies: 10%
• Industrial companies: 10%
• Mining companies: 8%
• Wholesale and retail trade companies, and restaurants: 8%
• Other companies: 5%

Which companies are not making profits?

• Public sector entities.
• Microenterprises registered in the National Registry of Micro and Small Businesses.
• Non-profit organizations.
• Cooperatives, communities and civil societies.
• Private companies that had 20 or fewer employees in 2022.