What Are The Public Holidays in Panama in 2026?

List of Public Holidays in Panama (2026)

Panama’s public holidays combine civic, historical, and religious observances that can significantly affect scheduling and pay. Use this overview to plan staffing, leave, and payroll for your Panama-based team in 2026.

Do Employers Have to Provide Paid Leave on Public Holidays?

Yes, Panamanian labour law generally treats national public holidays as paid rest days for employees, provided they are normally scheduled to work on that day. If a public holiday falls on a day the employee would usually work, you should pay their regular daily wage even if they do not work.

When employees do work on a public holiday, Panamanian law requires premium pay on top of the regular wage. The most common practice is to pay the normal daily wage plus a statutory surcharge for work on a holiday, and if the work also falls at night or as overtime, additional surcharges can stack. Because exact percentages and calculations can vary by sector and collective agreement, you should confirm the applicable rate with local counsel or your payroll provider.

Part‑time employees are generally entitled to paid public holidays on a pro‑rated basis when the holiday falls on a day they would normally work. If a holiday falls on a non‑working day for that employee, there is usually no additional entitlement unless a contract or collective agreement provides otherwise.

When a public holiday falls on a Sunday, Panamanian practice is often to observe the holiday on the following Monday for employment purposes, so your company should plan for Monday as the effective non‑working day. Always check the official government calendar each year, as specific observance rules can be confirmed or adjusted by decree.

Legal Penalties for Not Providing Paid Holiday Leave

Failure to respect public holiday rights in Panama can expose your company to administrative sanctions and back‑pay liabilities. The Ministry of Labour and Workforce Development (MITRADEL) is the main enforcement authority and can investigate complaints, conduct inspections, and order corrective measures.

If you do not pay employees correctly for public holidays or require them to work without the appropriate premium, MITRADEL may order you to pay outstanding wages, surcharges, and in some cases additional compensation. Monetary fines can apply per violation, and repeated non‑compliance can lead to higher penalties and closer scrutiny of your broader employment practices.

Common employer mistakes include treating all holidays as purely optional company benefits, misclassifying mandatory national holidays as regular working days, failing to apply premium rates when employees work on a holiday, and overlooking entitlements for part‑time or temporary staff. Keeping accurate time and attendance records and aligning your internal policies with Panamanian law is essential to reduce risk.

How Do Holidays Affect Overtime Thresholds?

Public holidays in Panama interact with overtime and premium pay rules rather than changing the basic weekly overtime thresholds. Hours worked on a public holiday are typically paid at a higher rate than ordinary hours, and if those hours exceed the normal daily or weekly limits, overtime surcharges may apply on top of the holiday premium.

In practice, this means that if an employee works on a public holiday, you should treat those hours as both holiday work and, where applicable, overtime. Night work, Sunday work, and overtime each have their own surcharges under Panamanian law, and these can combine with the holiday premium. Because the exact calculations can be technical and may depend on sector‑specific rules or collective agreements, it is safest to confirm the applicable multipliers with a local labour specialist or rely on a compliant payroll system that automatically applies the correct rates.

Holidays do not usually reduce the contractual weekly working hours; instead, they are treated as paid rest days. If you ask employees to make up hours lost to a holiday on another day, you must ensure you do not inadvertently create unpaid overtime or underpay the required surcharges.

Stay 100% Compliant with Leave Regulations Using Playroll

Managing Panama's public holidays and leave rules doesn’t have to be complex. Playroll keeps you 100% compliant by automatically tracking local holidays, observed days, and pay requirements –  so your team is paid correctly and on time, every time.

Whether you’re hiring your first employee or scaling a growing team, Playroll lets you employ talent without setting up a local entity. We handle compliant contracts, benefits, and payroll in one platform, so you can reduce compliance risk and focus on growing your business while we take care of the heavy-lifting in the background. Book a chat with our team to get started.