Work conditions in Panama

The Active Population in Figures

Working Conditions

Legal Weekly Duration

Panamanian labor law allows 4 work shifts per day.

1) Day work of 8 hours maximum per day and 48 hours per week which should take place between 6 AM and 6 PM. 2) Night work of 7 hours maximum per day and 42 hours per week which should take place between 6 PM and 6 AM. 3) Mixed work (night and day) of 7.30 hours maximum per day and 45 hours per week which should take place during the two cycles of work.  More than 3 nights per week the other periods are automatically considered as night. 4) Rotating cycle when the company needs staff during the different shifts.

Retirement Age

57 years for women and 62 years for men.

Working Contracts

The employment contracts are regulated by legal clauses and to a lesser degree by collective agreements and individual negotiations.
The terms of employment contracts, the conditions of hiring and dismissal are strict.

Labour Laws

Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Cost of Labour

Minimum Wage

The minimum wage levels can vary significantly depending on the sector and region in which the employee works.
In 2021, the minimum monthly wage for domestic work is set at BAP 300 or BAP 275 depending on the region (Ministry of Labour and Labour Development of Panama).

Average Wage

According to the ILO, the average salary was PAB 1,422 per month in 2018 (latest available data).

Social Contributions

Social Security Contributions Paid By Employers: 12.25%. of the monthly gross wage (and 10,75 % of the 13th month)
Social Security Contributions Paid By Employees: 9.75%.of the monthly gross wage (and 7.25% of the 13th month)

Social Partners

Employer Associations

PanaCamara - Panama Chamber of Commerce
AU Zona Libre de Colón - User Companies Association of the Colon Free Zone

Social Dialogue and Involvement of Social Partners

Private sector workers have a right to form and to join unions of their choice.  Public sector employees do not have a right to form unions.  Government workers can form "associations" and negotiate collectively but only if they have a minimum of 50 members.

Labour Unions

Panama Industrial Union (SIP) (Spanish only)
Unique National Union of the Building and related Industries (SUNTRACS) (Spanish only)

Unionisation Rate

14.2%.

Labour Regulation Bodies

Federation of Private Enterprises