Panama new minimum wage rates

Minimum Wage – Executive Decree Number 240, as of December 28, 2011 Executive Decree Number 240 dated December 28, 2011 by Panama’s President Ricardo Martinelli establishes the minimum wage per hour, depending on the economical activity, occupation and size of the company in all the national territory. The minimum wage rates for the two regions in which the territory is divided: Economic Activity Region 1 Region 2 AGRICULTURE, CATTLE FARMING, HUNTING FORESTRY, FISH FARMING (NATIONAL) (in US Dollars) • Small Business 1.22 1.22 • Big Business 1.43 1.43 Poultry farming and sub products with more than 50 employees 1.43 1.43 Plantain Activities 1.43 1.43 Fishing (national) Artisan 1.72 1.72 Industrial 1.79 1.79 AGRIBUSINESS Small Business (agricultural part) 1.22 1.22 Big Business (agricultural part) 1.43 1.43 Small Business (processing part) 1.76 1.47 Big Business (processing part) 2.08 1.72 MINING AND QUARRY ACTIVITIES (NATIONAL) 2.14 2.14 Construction Sand Activities 2.14 2.14 MANUFACTURING INDUSTRIES Small Business 1.76 1.47 Big Business 2.14 1.77 Economic Activity Region 1 Region 2 Distillation, Rectification and mixing Of alcoholic beverages 2.14 1.79 Paint, varnish and coating fabrication 2.14 1.79 Cement and concrete fabrication 2.36 2.14 Refrigeration equipment reparation 2.08 1.75 Processing of sugar cane (National) 2.08 2.08 ELECTRICITY, GAS, STEAM, AIR CONDITIONING AND ICE SUPPLY 2.36 2.36 Electric Power generation, transmission and Distribution 2.36 2.36 Ice production 2.08 1.72 WATER SUPPLY, SEWER AND WASTE ACTIVITIES 2.36 2.36 Water distribution and depuration (National) 2.36 2.36 Sewer 2.14 1.76 Collection, treatment and elimination of waste 2.14 1.76 Processing and recuperation of waste Materials 2.08 1.72 CONSTRUCTION 2.36 2.24 Drainage of agricultural lands and woods 1.43 1.43 WHOLESALE AND COMMISSIONS TRADE 2.14 1.76 Import agencies 2.14 1.76 Sugar cane products sale (National) 2.08 2.08 Economic Activity Region 1 Region 2 Combustible tanks 2.14 1.76 RETAIL SALE TRADE • Small Business 1.74 1.45 • Big Business 2.14 1.76 Supermarkets (with 5 or more branches) 2.08 1.71 Gas stations 2.08 1.71 FREE TRADE ZONES, SPECIAL ECONOMIC ZONES 2.30 1.76 HOTELS • Small Business 1.78 1.48 • Big Business 2.08 1.71 Hotels and resorts with franchise 2.14 1.76 Hotels with more than 200 rooms 2.14 1.76 Residential Hotels and Motels 2.14 1.76 RESTAURANTS AND BARS • Small Business 1.76 1.47 • Big Business 2.14 1.76 Night Clubs (national) 2.30 2.36 TRANSPORTATION 2.14 1.76 Cargo transportation in free trade or special Economic zones 2.08 1.71 Airway and waterway transportation 2.08 1.71 Port workers with companies of more than 50 employees (National) 2.36 2.36 International Airports (with more than 50 commercial premises) (National) 2.36 2.36 Economic Activity Region 1 Region 2 Bus drivers (National) 2.36 2.36 Flight Deck crew (National) 2.36 2.36 WAREHOUSING, STORAGE AND POST OFFICE 2.08 1.71 INFORMATION AND COMMUNICATIONS (NATIONAL) 2.14 2.14 Editing activities 2.14 1.77 Radio and Television production 2.14 1.76 Movies, Videos and Sound production 2.14 1.76 Movie Theaters 2.14 1.76 Telecommunications 2.36 2.36 Radio and Television Broadcasting 2.36 2.36 Technological and Service Info Activities 2.14 2.14 News Agencies 2.14 1.76 FINANCIAL AND INSURANCE ACTIVITIES 2.36 2.36 Banks and financial institutions 2.36 2.36 Consumers Cooperative 2.36 2.36 Pension and Insurance Activities 2.36 2.36 Pawn Shops 2.08 1.71 REAL ESTATE ACTIVITIES 2.36 2.15 Malls with more than 50 premises (National) 2.36 2.36 Economic Activity Region 1 Region 2 ADMINISTRATIVE AND SUPPORT ACTIVITIES (NATIONAL) 2.14 2.14 RENT AND LEASE ACTIVITIES (NATIONAL) 2.14 2.14 • Vehicles rental 2.14 2.14 • Internet Café Activities 1.98 1.93 EMPLOYMENT AGENCIES ACTIVITIES 2.14 2.14 (NATIONAL) TOURIST AGENCIES, TOURIST OPERATORS, AND RESERVATION SERVICES 2.08 1.71 BUILDING AND LANDSCAPING SERVICES ACTIVITIES (NATIONAL) 2.08 2.08 • Landscaping Maintenance Activities (gardens and green Areas) 1.43 1.43 BUSINESS SUPPORT AND ADMINISTRATIVE OFFICE ACTIVITIES (NATIONAL) 2.08 2.08 • PHOTOCOPIES BUSINESS (National) 2.08 2.08 SECURITY AND SURVEILLANCE AGENCIES ACTIVITIES (NATIONAL) 2.08 2.08 PROFESSIONAL, TECHNICAL AND SCIENTIFIC ACTIVITIES (NATIONAL) 2.08 2.08 Veterinary activities 2.08 1.71 Attorney, Accounting and Audit Activities (15 employees and more) (National) 2.14 2.14 Attorney, Accounting and Audit Activities (14 or less employees) (National) 2.08 2.08 Economic Activity Region 1 Region 2 Attorneys (National) 2.36 2.36 TEACHING (Administrative employees) 2.14 1.76 HEALTH SERVICES 2.14 1.76 Hospitals and Clinics 2.36 1.76 Health Technicians 2.36 2.36 ARTS AND ENTERTAINMENT ACTIVITIES (NATIONAL) 2.14 2.14 Casinos and gambling activities (National) 2.36 2.36 Gyms (National) 2.36 2.36 OTHER SERVICE ACTIVITIES 2.14 1.76 Non-profit organizations 2.08 1.71 Computer repair and maintenance (National) 2.14 2.14 Household equipment repair and maintenance • Small Business 1.76 1.45 • Big Business 2.08 1.71 Horizontal Property Residences (Buildings With 10 floors or more) (National) 2.36 2.36 Spas and Esthetics Clinics 2.36 1.76 Journalists (National) 2.36 2.36 FOREIGN ORGANIZATIONS ACTIVITIES 2.14 1.76 The regions in which the territory is divides are as follows: REGION 1: Panamá, Colón, San Miguelito, David, Santiago, Chitré, Aguadulce, Penonomé, Bocas del Toro, Chorrera, Arraiján, Capira, Chame, Antón, Natá, Las Tablas, Bugaba and Boquete REGION 2: All the other Districts of the country Small Business made reference to business with 10 or less full time employees in case of agricultural, cattle, services or retail commerce companies, 15 or less in case of manufacture companies and 20 or less in case of agro-industrial companies. The monthly maid services will be paid as follow: • Panamá, Colón, San Miguelito, David, Santiago, Chitré, Aguadulce, Penonomé Bocas del Toro, Chorrera, Arriaján, Capira Chame, Antón, Natá, Las Tablas, Bugaba and Boquete US$200.00 • All the other Districts of the country US$175.00 The decree is effective as of January 1, 2012.

Hotel opening would boost competition in Panama City, Panama

The hotel industry in Panama City, Panama is on the eve of experiencing a substantial increase in competition with the entry of about a 1,500 rooms available for tourists at the Hard Rock Hotel, located on Avenida Balboa. The franchise, known for its restaurants and hotels throughout the world, will open officially in October 2012, but has begun to offer half of its rooms in a soft opening in order to expose the local market to its restaurants and bars.

Following its opening, the hotel would be the largest in terms of rooms in Panama, representing about 7.5% of 20,000 hotel rooms planned for completion in 2014, of which 50% will have been built between 2010 and 2014. It is expected that the increasing number of rooms will create fierce competition among industry participants to obtain a high occupancy rate, which is somewhat in decline, but will be good for tourists looking for better values. This drop represents a decline of six percentage points of the annual rate of 12% between January 2011 and January 2010. Despite the decrease in occupancy rates, the inflow of tourists to the country grew by 16% during the same period, surpassing the 2 million tourists, reflecting the greater diversity in hotels. Among the other brands soon to open in Panama is the Waldorf Astoria, with 126 rooms and the Hilton Panama, with 351 rooms.