Statutory and legislative payroll changes in Panama, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.
New minimum wage rates under Executive Decree No. 13 of 31 December 2025
Effective 16 Jan 2026
Executive Decree No. 13 of 31 December 2025, published in Official Gazette No. 30438 on 6 January 2026, sets new minimum wage rates effective 16 January 2026, differentiated by economic activity, occupation, company size and region (Region 1 and Region 2). It repeals Executive Decree No. 01 of 10 January 2024.
For the employer
- Update payroll to the new minimum wage rates from 16 January 2026.
- Check the rate for each employee's activity, occupation, company size and region in the decree.
For the employee
- Minimum wage depends on activity, occupation, company size and region.
Source: EY Tax Alert - Panamá: Salario mínimo 2026 · Last verified 1 October 2026
Law 462 phases in higher employer social security contributions through 2029
Phased: 1 Mar 2027 and 1 Mar 2029
Law No. 462, enacted on 18 March 2025, reforms Panama's social security system. The employer contribution is 13.25% until 28 February 2027, rises to 14.25% from 1 March 2027, and to 15.25% from 1 March 2029. The employee contribution remains fixed at 9.75% of gross salary.
For the employer
- Apply the 13.25% employer contribution until 28 February 2027.
- Increase the employer contribution to 14.25% from 1 March 2027.
- Increase the employer contribution to 15.25% from 1 March 2029.
For the employee
- Employee social security contribution remains 9.75% of gross salary.
In practice: On a B/. 1,000 monthly salary: employee contribution B/. 97.50 (9.75%); employer contribution B/. 132.50 (13.25%) until 28 Feb 2027, B/. 142.50 (14.25%) from 1 Mar 2027 and B/. 152.50 (15.25%) from 1 Mar 2029.
Source: Fábrega Molino - Panama Social Security Reform 2025: Key Highlights of Law No. 462 · Last verified 1 October 2026