Minimum Wage in Panama as of 2018

This is how the adjustment of the minimum wage in Panama was, by economic activity, as of 2018

By: El Capital Financiero, Elizabeth Garrido A.

The new minimum wage rates in Panama, which will govern from January 2018 to December 2019, were published this Wednesday, December 27, 2017 in the Official Gazette No. 28433-A, where Executive Decree No. 75 appears where It details the salary adjustment according to region and economic activity.

The Executive, which fixed the adjustment on December 26 due to the fact that the National Minimum Wage Commission did not reach an agreement on this issue, informed that for the next biannual period an average increase of 6.5% will be in Panama for the large company and 4.5% for the small business.

"The rates set by this decree constitute the minimum remuneration in money that must be paid to the workers and, therefore, modify the lower wages stipulated in any legal or regulatory provision, labor contract or collective agreement," the Ministry of Labor recalled. and Labor Development (Mitradel).

Large and small companies

To differentiate small and large companies, the provisions of Law No. 1 of March 17, 1986 (labor law) will be taken as reference.

Therefore, small companies will be considered "those with ten or fewer permanent or plant workers, in the case of agricultural, livestock or service or retail businesses; fifteen or less in the case of manufacturing companies; and twenty or less in the case of agroindustrial companies. "

"The establishments of sales of banking, financial, savings and credit, insurance and reinsurance policies will not be considered as small businesses; real estate and property management, computer science, advertising, as well as those dedicated to the sale of wholesale merchandise, "said the decree.

The new salary adjustments

The new minimum wage rates vary by region (1 and 2) of the country and economic activity. Region 1 is made up of 37 districts of nine provinces, except Darién, while Region 2 is composed of the rest of the districts of the country.

In region 1 are included: Prov. Of Panama (Panama, San Miguelito, Chepo, Taboga), Prov. Of Panama West (Arraiján, La Chorrera, Capira, Chame, San Carlos), Prov. De Chiriquí (David, Dolega, Boquete, San Felix, Barú, Boquerón, Bugaba), Province of Veraguas (Santiago, Atalaya), Province of Herrera (Chitré, Santa María, Parita, Pesé), Prov. De Coclé (Aguadulce, Antón, Natá, Penonomé) , Prov. Of Bocas del Toro (Bocas del Toro, Changuinola, Chiriquí Grande), Prov. Of Los Santos (Las Tablas, Pedasí, Guararé, Los Santos), and Prov. De Colón (Colón, Donoso, Portobelo, Santa Isabel) .

In region 2, the rest of the districts of the country are included.

Photo from Capital Financiero