New Minimum Wage in Panama

Executive Decree No. 1 of 10 January 2024 (the Executive Decree), determines the new minimum wage rates in the Republic of Panama, applicable by region and activity.

The regions.

• Region 1: Integrated by: Panama, Colon , San Miguelito, David, Santiago, Chitre, Aguadulce, Penonome, Bocas del Toro, La Chorrera, Arraijan, Capira, Chame, Anton, Nata, Las Tablas, Bugaba, Boquete, Taboga, San Carlos, Chepo, Guarare, Los Santos, Pedasi, Dolega, San Felix, Baru, Boqueron, Portobelo, Donoso, Santa Isabel, Santa Maria, Parita, Pese, Atalaya, Chanquinola, Chiriqui Grande, Almirante, Tierras Altas, Omar Torrijos Herrera.
• Region 2: The rest of the country.

The minimum wage.

The Executive Decree increases the minimum wage in all the regions of the country.

• The minimum wage increase applies as follows:
• An increase of 4.5% in all small enterprises
• An increase of 6% in all large enterprises
• An increase of 7% applicable to all enterprises of the banana sector.