I am an entrepreneur who runs a grocery distribution company in the Downtown LimaI work alongside my older brother and we have recently found ourselves in a challenging situation: the business is growing and we need to hire talent to help us manage this expansion. This is where my nephew comes in, a recent graduate from the University of Engineering, with a deep knowledge of new technologies that could boost our business.
My nephew has told me that he needs to receive 4,000 soles net per month to cover his personal and family expenses, which include school for his two children (1,000 soles), the mortgage (800 soles), food and groceries (1,000 soles), tickets (200 soles), utilities (150 soles) and other expenses (850 soles). However, for him to receive 4,000 soles net, he would have to be on the payroll with a gross salary of 5,000 soles. With the additional charges of social security, gratuities and Compensation for Time of Service (CTS), the total cost to the company would be approximately 6,700 soles.
The problem is that, although I am willing to pay him 4,000 soles, I simply cannot afford the full cost of 6,700 soles. My financial situation does not allow me to do so. To avoid this problem, I could hire him through professional fee receipts, which would save me the additional workload. However, my lawyer cousin has warned me about the associated risks, since the National Superintendence of Labor Inspection (Sunafil) could fine me for this practice.
This situation has led me to reflect on how high workloads discourage formality. Even though I would like to comply with all my tax and labor obligations, the reality is that additional burdens make this unfeasible for many small business owners like me. Current legislation, although well-intentioned to protect workers, ends up creating barriers that encourage informality.
Ultimately, I have decided to take the risk and pay my nephew 4,000 soles through fee receipts. It is not the ideal solution, but it is the only way I can keep the business afloat while providing my nephew with the income he needs. This situation is a clear example of how workloads can be counterproductive, preventing business owners from formally hiring their staff and ultimately affecting the economy at large.
