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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
The minimum wage in Panama is around US$2 an hour.
The unemployment rate in Panama is just under 5%.
In accordance with Panama's Labour Law, employment contracts must be in Spanish or a mutually understandable language. Employers are obliged to provide a written contract specifying
Panama's work contracts or collective agreements lay out the probation period, which typically spans up to three months.
The regular workday is eight hours, and a full workweek extends up to 48 hours in Panama. Those under 16 years old have a maximum work week of 36 hours.
In Panama, overtime is restricted to three additional hours per day or nine hours per week. Compensation for overtime exceeding 48 hours per week ranges from 125% to 175%, based on the timing of the hours.
Minimum wages in Panama vary based on economic activity, occupation, and establishment size, ranging from $326.56 to $971.35 per month.
In Panama, employees receive a mandatory 13th-month payment, equivalent to an extra month's salary, distributed in three equal parts on April 15th, August 15th, and December 15th.
In Panama, individual taxes are calculated using a progressive rate that ranges from 0% to 25%.
The Social Security program, overseen by the Social Security Fund (CSS), provides pensions for retirees and disabled individuals. Contributions from both employees and employers fund these benefits.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Panama tailored to your needs.
In Panama, termination after the probation period requires just cause, with no at-will termination. Employees who believe their termination is unfair have 60 days to seek reinstatement. Termination methods include:
In Panama, the minimum notice period is 15 days, subject to administrative labor authority approval in special circumstances. Salary payment may sometimes substitute for the notice period. The notice period typically varies depending on the reason for termination.
In Panama, employees receive severance pay unless it's a disciplinary dismissal. The amount depends on the termination reason, contract type, and duration of employment.
Panama observes 12 national holidays:
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