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Peru Panel Backs Phased Profit-Sharing Increase for Hydrocarbon Sector to 8% by 2028

The proposal moves to a plenary vote following committee approval.

Overview

  • The Congressional Commission of Work and Social Security approved a dictamen to modify Article 2 of D.L. 892, explicitly adding hydrocarbon companies to the list of sectors with set profit-sharing rates.
  • The plan raises workers’ participation in the sector from the current framework to 6% in 2026, 7% in 2027, and 8% in 2028 on annual net income before taxes.
  • Hydrocarbon firms have been treated as “other activities” under the existing law, applying a 5% profit-sharing rate.
  • Lawmakers argue the change aligns hydrocarbons with extractive peers such as mining, and the committee’s text consolidates multiple bills, including Projects 1420, 1871, 2462, and 5241.
  • The measure now heads to the full Congress for debate, as legal and business advisers warn the higher permanent labor cost could weigh on investment and expansion decisions in the sector.