Working Hours and Overtime in Panama

In Panama, your company must comply with working hour and overtime laws – including daily limits, overtime thresholds, and rest requirements – to stay compliant and build a strong employee experience.

Looking ahead to 2026, labor authorities in Panama are expected to continue focusing on enforcement of working-time rules, accurate timekeeping, and proper overtime compensation, particularly in sectors with extended or irregular hours such as hospitality, logistics, and services. Employers should maintain clear written policies, reliable time-tracking systems, and transparent payslips that show standard hours, overtime, and rest periods, and should periodically audit practices to ensure that actual schedules match contractual terms and legal limits.

• Standard Working Hours
• Overtime Thresholds
• Overtime Pay Rates
• Daily And Weekly Rest Requirements
• Night Work Restrictions
• Penalties For Non-Compliance

What Are The Standard Working Hours In Panama?

An employee whose age is 17 or younger has a maximum of 6 hours per day and 36 hours per week. An employee whose age is 18 or older is allowed to work 48 hours per week. A minimum meal interval of 30 minutes must be observed by employees who work more than 6 hours in a day. In typical working hours, Monday through Friday, the hours are 8:00 to 17:00.

Maximum Working Hours In Panama

Under Panamanian labor law, the general limit for daytime work is 8 hours per day and 48 hours per week. Daytime work is usually defined as work performed between 6:00 and 18:00. Night work – typically between 18:00 and 6:00 – is subject to a lower maximum of 7 hours per day and 42 hours per week, reflecting the additional strain associated with night shifts. Mixed shifts that cover both day and night periods are generally capped at 7.5 hours per day and 45 hours per week. As an employer, you must structure schedules so that employees do not exceed these statutory limits, except where overtime is lawfully authorized and properly compensated.

Industry-Specific Exceptions

• Continuous Process Manufacturing And Refineries
• Hospital And Emergency Health Services
• Hospitality, Hotels, And Restaurants
• Transportation, Ports, And Aviation Services
• Security, Surveillance, And Guard Services
• Agriculture, Plantations, And Seasonal Harvest Work

Managerial And Exempt Employees

Senior managers and employees in positions of trust may be treated differently from rank-and-file staff for working time purposes. In Panama, certain high-level managerial, administrative, or supervisory employees who have broad decision-making authority and control over their own schedules may not be strictly subject to the standard daily and weekly hour limits, provided this is consistent with the Labor Code and any applicable collective bargaining agreements. However, you should not assume that a job title alone creates an exemption. To minimize risk, clearly define managerial responsibilities in the employment contract, document the employee’s autonomy over working time, and ensure that any agreed remuneration reasonably reflects the extended availability or irregular hours expected from the role.

Statutory Full-Time Working Hours In Panama

Full-time employment in Panama is generally based on the statutory maximum of 48 hours per week for daytime work, usually spread over six days, with a shorter workday on Saturday in many sectors. For night or mixed shifts, full-time hours are reduced in line with the lower legal limits. When designing full-time roles, you should specify the normal weekly schedule, identify whether the work is daytime, night, or mixed, and ensure that any additional hours beyond the agreed schedule are treated as overtime. Written employment contracts and internal policies should clearly state the standard hours, rest days, and any shift rotation patterns to demonstrate compliance and provide transparency to employees.

Overtime Regulations In Panama

What Counts As Overtime In Panama?

In Panama, overtime is generally any time worked in excess of the statutory daily or weekly limits applicable to the type of shift. For daytime workers, hours beyond 8 per day or 48 per week are considered overtime. For night workers, overtime begins after 7 hours per day or 42 per week, and for mixed shifts after 7.5 hours per day or 45 per week. Overtime must be expressly requested or authorized by the employer, either in advance or under a documented emergency procedure. You should avoid informal practices where employees stay late or start early without clear authorization, as those hours can still be deemed payable overtime if the work was known or could reasonably have been known by management.

Maximum Overtime In Panama

Panamanian law places limits on how much overtime an employee can perform to protect health and safety. As a general guideline, daily overtime should not exceed 3 hours, and weekly overtime should not exceed 9 hours, except in exceptional and duly justified circumstances such as force majeure or urgent repairs. Even in emergencies, you must keep detailed records of the reasons for exceeding normal limits and the hours worked, and you should return employees to standard schedules as soon as possible. Structuring rosters to avoid systematic reliance on overtime is important, as persistent excessive hours can attract scrutiny from labor authorities and increase the risk of fatigue-related incidents.

Overtime Payout Rates In Panama

Overtime in Panama must be compensated at premium rates above the employee’s regular hourly wage. Daytime overtime is typically paid at 125 percent of the regular rate. Night overtime and overtime performed on weekly rest days or public holidays is paid at higher multipliers, which can reach 150 percent or more depending on the circumstances and whether the work falls on a mandatory rest day or holiday. When calculating overtime, you must base the rate on the employee’s full ordinary remuneration, including fixed salary and any regular, non-discretionary allowances that form part of normal pay. Ensure your payroll system correctly distinguishes between daytime, night, mixed-shift, and holiday overtime, and that payslips clearly itemize overtime hours and rates to provide transparency and evidence of compliance.

Rest Periods And Breaks In Panama

Employees in Panama typically work up to 8 hours per day and 48 hours per week for daytime schedules, with lower limits for night and mixed shifts, and rest periods and breaks are designed to protect health and safety within these limits. As an employer, you must integrate meal breaks, daily rest between shifts, and weekly rest days into your scheduling so that employees can recover adequately from their working time and you remain compliant with statutory requirements.

• Meal Break Requirements
• Daily Rest
• Weekly Rest
• Minors
• Employer Duties