Peruvian government clarifies insurance coverage for employees

Connecticut Enacts Paid Family and Medical Leave

A supreme decree (Spanish) issued by the Peruvian government clarifies an employer’s duty to provide insurance coverage for its workforce, including transitional arrangements applicable to certain employees during 2020. An emergency decree (Spanish) published in December 2019, specified that employers must provide life insurance for all employees, regardless of their length of service. The former law required insurance coverage for employees after four years of service. 

Highlights of the supreme decree

  • The requirement to provide insurance coverage for employees is backdated to 1 Feb 2020. Insurance companies are currently developing policies to fulfill the new legal obligations. 
  • The supplementary decree sets out transitional arrangements applicable during 2020. Employers can provide partial insurance to cover accidental death or total and permanent disability due to an accident for employees with less than four years of service. Employers must provide full insurance coverage to all employees who have or will complete four years of service by 31 Dec 2020. From 1 Jan 2021, employers must provide full insurance coverage for all employees, regardless of their length of service.
  • The decree provides a formula to calculate benefits for beneficiaries of employees who completed fewer than 30 days or three months of employment at the time of their death. Employers must register insurance policies with the labor ministry. 

Related resources

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Mercer Law & Policy resource

Carmen Acosta
by Carmen Acosta

Vice President, Marsh & McLennan

Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

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