Executive Decree 7, March 2006, regulates the Minimum Hourly Wage Level for Workers in the Republic of Panama determined by the economic activity and the region where the work is performed.Executive Decree 7, March 2006, regulates the Minimum Hourly Wage Level for Workers in the Republic of Panama determined by the economic activity and the region where the work is performed.
Economic Activity
Minimum Wage per Region
Region 1
Region 2
Region 3
Agriculture, Hunting, Forestry
Small Enterprises
0.89
0.89
0.89
Large Enterprises
0.94
0.94
0.94
Fishing
1.17
1.17
1.17
Mining and Quarry
1.37
1.16
1.16
Manufacturing
Small Enterprises
1.27
1.06
0.93
Large Enterprises
1.36
1.13
1.03
Electricity, Gas and Water
1.38
1.17
1.05
Construction
1.68
1.48
1.33
Retail and Hotels
Small Enterprises
1.29
1.07
0.93
Large Enterprises
1.37
1.11
1.00
Transportation, storage and communications
1.37
1.16
1.00
Finance, Insurance and Realty
1.38
1.35
1.34
Communal, social, personal services
1.35
1.13
0.99
For the application of the Minimum Wage Level, the Republic of Panama has been divided in three regions:
Region 1: Includes the Districts of Panama, Colon and San Miguelito
Region 2: Includes the Districts of David, Chitré, La Chorrera, Aguadulce, Santiago, Barú, Changuinola,
Las Tablas, Penonomé, Bugaba, Arraijan, Capira, Chepo and Taboga
Region 3: The districts not included in the above mentioned list.
*For companies with ten (10) or less employees
The list herein included applies to companies and employees that are not part of the CAPAC–SUNTRACS Collective Bargaining Agreement.
CAPAC stands for the Panamanian Chamber of Construction and SUNTRACS stands for the Construction Worker Single Union.
Only when the companies become a part of the CAPAC and the workers organize a union within the company and also becomes part of the SUNTRAC, then the minimum wage rates listed in the CAPAC-SUNTRACT Collective Bargaining Agreement will be applicable.
Please notice that the items to be covered by the employer are:
Work benefits
Percentage of gross salary
Salary:
--
Social Security:
10.75%
Education tax:
1.50%
Workers’ compensation:
*
Seniority Bonus:
1.923%
Indemnity:
6.54%
Vacations:
9.09%
Thirteen Month bonus:
8.33%
*The employer must cover workers’ compensation, which depends on the duties performed by the worker. The Panamanian Social Security assigns the percentage to be paid.
