National minimum wage in detail
The national minimum wage is fixed by the National Committee for the Minimum Wage (represented by the trade unions, the employers’ sector and Government) by means of an Executive Decree. If the Committee does not reach an agreement, the rate for the minimum wage is fixed by the President of the Republic of Panama. The minimum wage is set and revised at least every two years. The minimum wage takes into account the location of employment, the activities and the employee’s occupation. For example, the minimum wage for some key economic sectors, such as financial and insurance services, is USD 3.17 (EUR 2.76) per hour, and for the manufacturing industry it ranges between USD 2.20 (EUR 1.92) and USD 2.85 (EUR 2.48) per hour, depending on the branch of industry. There are also two different regional minimum wage levels - Region 1, which includes Panama City, and Region 2. Since 1 January 2018, the minimum wage for Regions 1 and 2 ranges from USD 1.53 to USD 4.45 per hour.
Author: Arosemena Noriega & Contreras
Date: March 2019
Note: For specific advice on any particular issue, please consult the relevant firm. The law is stated as at March 2019.