- Country Guide
- Panama
Panama
Last Update by , 15 Aug 2024
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Exchange Rate
10 Oct 2024
Cost of Living
Indicative value for a working adult in a city: Panama CIty
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (USD) |
|---|---|
| McDonalds Set Meal | 8 |
| Monthly Train and Bus Tickets | 25 |
| 3 Bedrooms Rental (City Center) | 1,991 |
| 3 Bedrooms Rental (Outskirt) | 1,303 |
Current Inflation Rate
3.4%
Wage
Minimum Wages
- From January 2024 for domestic workers: Region 1- 340 USD per month, Region 2, 315 USD per month
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (USD) |
|---|---|
|
Entry-Level
Fresh Graduate
|
900 |
|
Mid-Level
5 Years
|
1200 |
|
Experienced & Managerial Level
10 Years
|
1800 |
|
Specialized & Senior-Level
15 Years
|
2600 |
Annual Salary Growth
3.5%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
|
Social Security (CCS) (Includes health, sickness, maternity and pension or retirement) |
12.25% No capping |
9.75% No capping |
All staff |
| Unemployment | 1.92% | - | All staff |
| Worker's Accident Insurance (CSS) |
0.98-5.67% Rate Determined by CSS |
- | All staff |
|
Payroll Taxes (Education Insurance and Professional Risk) |
1.5%- Education Insurance 0.33% - 6.25% - Professional Risk |
1.25% - Education insurance | All staff and companies |
| 13 Month Salary (Mandatory) |
1 month gross salary Paid in 3 installments on15th April, August and December |
- | All staff |
Other Benefit
Other common employment benefits in Panama include:
- Life Insurance: Up to 100 USD per month
- Private Medical Insurance: Up to 300 USD per month
- Dental Vision Insurance: Up to 40 USD per month
- Public Transportation Pass: 25 USD per month
- Phone: 30 USD per month
- Internet: 50 USD per month
Income Tax
Residents
-
Tax period: 1st January - 31st December
Filing Due Date: 31st March the following year
Country Level
| Taxable Income | Rate |
|---|---|
| 0-11,000 | 0% |
| 11,000 - 50,000 | 15% on excess |
| Over 50,000 | 5,850 USD on income + 25% on excess |
Non-residents
- Flat rate 15% or resident rate, which ever is higher.
Working Hours
Statutory
48 hours
8 hours a day, 6 days a week
Night work: 42 hours- 7 hours a day, 6 days a week
Typical practice
48 hours
Monday - Saturday
Overtime
Capped 3 hours a day
- Daytime: 125% regular hourly pay
- Rest Days and Holidays: 150% regular hourly pay
- Night work: 175% regular hourly pay
Employment Contract
Fixed-Term
Used for independent contractors, freelancers or temporary positions that require specialised technical skills
Contract Format
Must be written, in Spanish and English or a mutually understandable language and signed by both parties
Payroll Currency
PAB, the USD is preferred
Probation
For most collective agreements- typically up to 3 months
Contract Period
Independent contractors and freelancers: Up to 1 year- can be renewed as many times as required long as the total duration does not exceed 1 year
Roles with specialised technical skills: up to 3 years- can be renewed as many times as required long as the total duration does not exceed 3 years
Termination
-
During probation for staff and employers:
- For Just cause: No notice -
Voluntary resignation:
- 15 days -
Involuntary termination:
- Under 2 years' service: 30 days
- 2 - 5 years' service: 60 days
- Over 5 years' service: 90 days -
Severance:
- Applies to staff dismissed without cause or for redundancy
- 0 – 6 months’ service: 0.5 months’ salary
- 6 – 9 months’ service: 0.75 months’ salary
- 9 months – 1 year service: 1 month’s salary
- 1 – 2 years' service: 3 months salary
- 2 – 4 years' service: 4.5 months salary
- 4 – 5 years' service: 5.2 months salary
- 5 – 10 years' service : 9.75 months salary
- 10 – 20 years' service: 14.8 months salary
Public Holiday
11 days
Country Level
| Date | Name |
|---|---|
| 01 Jan | New Year's Day |
| 09 Jan | Martyrs' Day |
| 13 Feb | Carnival |
| 29 Mar | Good Friday |
| 01 May | Labor Day |
| 03 Nov - 04 Nov | Separation Day |
| 05 Nov | Colón Day |
| 10 Nov - 11 Nov | Uprising of Los Santos Holiday |
| 28 Nov | Independence Day |
| 08 Dec - 09 Dec | Mother's Day |
| 20 Dec | National Mourning Day |
| 25 Dec | Christmas Day |
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | 30 Calendar days | All staff after 11 months' continuous service |
| Sick Leave | 18 working days | All full- time staff after 3 months' service |
| Maternity Leave |
14 weeks 6 weeks before birth, 8 weeks after |
All expectant full-time mothers with 9 months social security contributions |
| Paternity Leave | 3 working days | All full time expectant fathers |
| Infant Care Leave | 6 working days | All staff with a citizen baby |
| National Reserve Service Leave | Up to 90 days per year for active duty | All staff aged 18 - 45 are part of the National Reserve |
Reference
- https://www.mitradel.gob.pa/el-salario-minimo-en-panama/
- https://www.css.gob.pa/
- https://www.mef.gob.pa/
- https://metrodepanama.org/tarifas-metro-de-panama/
- https://www.glassdoor.com/Salaries/panama-city-administrative-manager-salary-SRCH_IL.0,11_IM1117_KO12,34.htm
- https://www.gacetaoficial.gob.pa/pdfTemp/29946_A/102409.pdf
- https://www.gacetaoficial.gob.pa/pdfTemp/29377_A/87261.pdf
- https://www.panamadigital.gob.pa/InformacionTramite/subsidio-por-maternidad
- https://sertv.gob.pa/servidores-publicos-se-capacitan-en-calculo-de-prestaciones-laborales/
- https://vlex.com.pa/vid/codigo-trabajo-40572019#section_34
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Contact UsCountry Guide - Panama
Last updated: 15 Aug 2024
Exchange Rate
Currency (USD)
- 1 CNY = 0.185 USD
- 1 USD = 1.32 USD
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
Cost of Living
Indicative value for a working adult in a city: Panama CIty
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (USD) |
|---|---|
| McDonalds Set Meal | 8 |
| Monthly Train and Bus Tickets | 25 |
| 3 Bedrooms Rental (City Center) | 1,991 |
| 3 Bedrooms Rental (Outskirt) | 1,303 |
Current Inflation Rate
3.4%
Wage
Minimum Wages
- From January 2024 for domestic workers: Region 1- 340 USD per month, Region 2, 315 USD per month
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (USD) |
|---|---|
|
Entry-Level
Fresh Graduate
|
900 |
|
Mid-Level
5 Years
|
1200 |
|
Experienced & Managerial Level
10 Years
|
1800 |
|
Specialized & Senior-Level
15 Years
|
2600 |
Annual Salary Growth
3.5%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
|
Social Security (CCS) (Includes health, sickness, maternity and pension or retirement) |
12.25% No capping |
9.75% No capping |
All staff |
| Unemployment | 1.92% | - | All staff |
| Worker's Accident Insurance (CSS) |
0.98-5.67% Rate Determined by CSS |
- | All staff |
|
Payroll Taxes (Education Insurance and Professional Risk) |
1.5%- Education Insurance 0.33% - 6.25% - Professional Risk |
1.25% - Education insurance | All staff and companies |
| 13 Month Salary (Mandatory) |
1 month gross salary Paid in 3 installments on15th April, August and December |
- | All staff |
Other Benefit
Other common employment benefits in Panama include:
- Life Insurance: Up to 100 USD per month
- Private Medical Insurance: Up to 300 USD per month
- Dental Vision Insurance: Up to 40 USD per month
- Public Transportation Pass: 25 USD per month
- Phone: 30 USD per month
- Internet: 50 USD per month
Income Tax
Residents
-
Tax period: 1st January - 31st December
Filing Due Date: 31st March the following year
Country Level
| Taxable Income | Rate |
|---|---|
| 0-11,000 | 0% |
| 11,000 - 50,000 | 15% on excess |
| Over 50,000 | 5,850 USD on income + 25% on excess |
Non-residents
- Flat rate 15% or resident rate, which ever is higher.
Working Hours
Statutory
48 hours
8 hours a day, 6 days a week
Night work: 42 hours- 7 hours a day, 6 days a week
Typical practice
48 hours
Monday - Saturday
Overtime
Capped 3 hours a day
- Daytime: 125% regular hourly pay
- Rest Days and Holidays: 150% regular hourly pay
- Night work: 175% regular hourly pay
Employment Contract
Permanent
Probation
For most collective agreements- typically up to 3 months
Termination
-
During probation for staff and employers:
- For Just cause: No notice -
Voluntary resignation:
- 15 days -
Involuntary termination:
- Under 2 years' service: 30 days
- 2 - 5 years' service: 60 days
- Over 5 years' service: 90 days -
Severance:
- Applies to staff dismissed without cause or for redundancy
- 0 – 6 months’ service: 0.5 months’ salary
- 6 – 9 months’ service: 0.75 months’ salary
- 9 months – 1 year service: 1 month’s salary
- 1 – 2 years' service: 3 months salary
- 2 – 4 years' service: 4.5 months salary
- 4 – 5 years' service: 5.2 months salary
- 5 – 10 years' service : 9.75 months salary
- 10 – 20 years' service: 14.8 months salary
Fixed-Term
Used for independent contractors, freelancers or temporary positions that require specialised technical skills
Probation
For most collective agreements- typically up to 3 months
Termination
-
During probation for staff and employers:
- For Just cause: No notice -
Voluntary resignation:
- 15 days -
Involuntary termination:
- Under 2 years' service: 30 days
- 2 - 5 years' service: 60 days
- Over 5 years' service: 90 days -
Severance:
- Applies to staff dismissed without cause or for redundancy
- 0 – 6 months’ service: 0.5 months’ salary
- 6 – 9 months’ service: 0.75 months’ salary
- 9 months – 1 year service: 1 month’s salary
- 1 – 2 years' service: 3 months salary
- 2 – 4 years' service: 4.5 months salary
- 4 – 5 years' service: 5.2 months salary
- 5 – 10 years' service : 9.75 months salary
- 10 – 20 years' service: 14.8 months salary
Public Holiday
11 days
2024
| Date | Name |
|---|---|
2025
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | 30 Calendar days | All staff after 11 months' continuous service |
| Sick Leave | 18 working days | All full- time staff after 3 months' service |
| Maternity Leave |
14 weeks 6 weeks before birth, 8 weeks after |
All expectant full-time mothers with 9 months social security contributions |
| Paternity Leave | 3 working days | All full time expectant fathers |
| Infant Care Leave | 6 working days | All staff with a citizen baby |
| National Reserve Service Leave | Up to 90 days per year for active duty | All staff aged 18 - 45 are part of the National Reserve |
Reference
- https://www.mitradel.gob.pa/el-salario-minimo-en-panama/
- https://www.css.gob.pa/
- https://www.mef.gob.pa/
- https://metrodepanama.org/tarifas-metro-de-panama/
- https://www.glassdoor.com/Salaries/panama-city-administrative-manager-salary-SRCH_IL.0,11_IM1117_KO12,34.htm
- https://www.gacetaoficial.gob.pa/pdfTemp/29946_A/102409.pdf
- https://www.gacetaoficial.gob.pa/pdfTemp/29377_A/87261.pdf
- https://www.panamadigital.gob.pa/InformacionTramite/subsidio-por-maternidad
- https://sertv.gob.pa/servidores-publicos-se-capacitan-en-calculo-de-prestaciones-laborales/
- https://vlex.com.pa/vid/codigo-trabajo-40572019#section_34
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000