Country Hiring Guide

Discover & Hire Top Talents in Panama

Everything you need to know about the country's employment laws, culture, and workforce insights.

Capital

Panama City UTC-5

Economic Hubs

Panama City, Colón

Currency

Balboa and US Dollar (PAB, USD)

Languages

Spanish, English

Payroll

semi monthly or monthly

Employer Tax

14.31% – 19.42%

Workforce Insights

Talent Landscape in Panama

Panama has an estimated labor force of about 2.29 million (2025), with talent demand concentrated in canal and logistics services, financial services, shared services, maritime and tourism. International employers are most likely to find relevant candidate pools for Logistics, Maritime, and Finance & Compliance. The market is well suited to focused hiring, while niche roles benefit from targeted sourcing and a clear employer value proposition.

Major Economic Hubs

Panama City, Colón

Skills In-Demand

Logistics

Working Culture

International Business Pace with Local Relationships

Panama's logistics, finance and multinational sectors often operate quickly and across borders, but personal trust remains important. Clear documentation and dependable follow through help connect international standards with local execution.

Hierarchy and Clear Decision Rights

Senior leaders or owners may retain approval authority even when teams appear informal. Confirm who owns the final decision.

Carnival, Holidays and Service Operations

Carnival and public holidays can affect staffing, while ports, logistics and hospitality may require continuous coverage. Workforce planning should distinguish office and operational rhythms.

Average Salary

Job Title	Avg Monthly Salary (USD)
Accounting & Finance
Administrative Executive, Junior (1-3 years)	950 USD	S$1,292
Administrative Executive, Mid (3-5 years)	1,250 USD	S$1,700
Book Keeper, Junior (1-3 years)	850 USD	S$1,156
Book Keeper, Mid (3-5 years)	1,150 USD	S$1,564
Finance Executive, Junior (1-3 years)	1,100 USD	S$1,496
Finance Executive, Mid (3-5 years)	1,450 USD	S$1,972
Creatives
Graphic Designer, Junior (1-3 years)	1,100 USD	S$1,496
Graphic Designer, Mid (3-5 years)	1,550 USD	S$2,108
UI/UX Designer, Junior (1-3 years)	1,150 USD	S$1,564
UI/UX Designer, Mid (3-5 years)	2,000 USD	S$2,720
Data Analytics
Data Analyst, Junior (1-3 years)	1,550 USD	S$2,108
Data Analyst, Mid (3-5 years)	2,050 USD	S$2,788
Data Engineering
Data Engineer, Junior (1-3 years)	1,550 USD	S$2,108
Data Engineer, Mid (3-5 years)	2,550 USD	S$3,468
AI & Machine Learning
Data Scientist, Junior (1-3 years)	1,550 USD	S$2,108
Data Scientist, Mid (3-5 years)	2,100 USD	S$2,856
Machine Learning Engineer, Junior (1-3 years)	1,350 USD	S$1,836
Machine Learning Engineer, Mid (3-5 years)	2,000 USD	S$2,720
Digital Marketing
Content Marketing, Junior (1-3 years)	1,250 USD	S$1,700
Content Marketing, Mid (3-5 years)	1,900 USD	S$2,584
Digital Marketing, Junior (1-3 years)	1,250 USD	S$1,700
Digital Marketing, Mid (3-5 years)	1,900 USD	S$2,584
Growth Marketing, Junior (1-3 years)	1,350 USD	S$1,836
Growth Marketing, Mid (3-5 years)	2,000 USD	S$2,720
Software Development
Backend Developer, Junior (1-3 years)	1,650 USD	S$2,244
Backend Developer, Mid (3-5 years)	2,400 USD	S$3,264

Job Title	Avg Monthly Salary (USD)
DevOps
DevOps Engineer, Junior (1-3 years)	1,550 USD	S$2,108
DevOps Engineer, Mid (3-5 years)	2,100 USD	S$2,856
Site Reliability Engineer, Junior (1-3 years)	1,550 USD	S$2,108
Site Reliability Engineer, Mid (3-5 years)	2,250 USD	S$3,060
Customer Support
Customer Service Officer, Junior (1-3 years)	800 USD	S$1,088
Customer Service Officer, Mid (3-5 years)	1,050 USD	S$1,428
Customer Experience
Customer Success Manager, Junior (1-3 years)	1,150 USD	S$1,564
Customer Success Manager, Mid (3-5 years)	1,650 USD	S$2,244
HR Operations
HR Executive, Junior (1-3 years)	1,050 USD	S$1,428
HR Executive, Mid (3-5 years)	1,400 USD	S$1,904
FinTech
Blockchain Developer, Junior (1-3 years)	1,250 USD	S$1,700
Blockchain Developer, Mid (3-5 years)	1,900 USD	S$2,584
Payments Engineer, Junior (1-3 years)	1,250 USD	S$1,700
Payments Engineer, Mid (3-5 years)	1,700 USD	S$2,312
Cloud Computing
Cloud Engineer, Junior (1-3 years)	1,450 USD	S$1,972
Cloud Engineer, Mid (3-5 years)	2,100 USD	S$2,856

Hiring Guide

Hiring Guide in Panama

This guide highlights the fundamental rules employers must know to hire compliantly, covering pay structures, leave policies, termination procedures, and compliance requirements.

For details, browse the topics through the tabs below.

Payroll in Panama

Payroll Cycle

Salary is commonly paid on the 15th and 30th.

Minimum Wage

Minimum wages vary by region, economic activity, occupation, and employer size.

Overtime Pay

- Generally 8 hours per day and 48 hours per week for daytime work; lower limits apply to night and mixed shifts. - Use the shift type and day category to determine the exact multiplier.

- Apply the statutory multiplier that matches the shift and day category: 1.25×, 1.50× or 1.75× × Ordinary Hourly Rate × Applicable Hours.

Bonus

13th Month

Panama requires a 13th month payment paid in three instalments.

13th month = total ordinary salary earned in the relevant four month period ÷ 12 for each instalment. Across a complete year, the three instalments total approximately 1 additional month of salary.

Employees in the private sector are eligible based on salary earned, including employees with partial periods of service. Instalments are due on 15 April, 15 August, and 15 December. The statutory salary base and exclusions must be applied under the Labour Code and implementing rules.

Employees Benefits

Types of Benefit	Details
Mandatory
Statutory termination or end of service entitlement in Panama	Panama does not treat every separation identically. The final settlement must be calculated using the employee’s contract type, completed service and reason for termination, including statutory notice, accrued leave and any legally required severance or end of service award. Collective agreements may provide a more favourable formula.
Work injury protection under Social Security Fund contributions, education insurance and occupational risk coverage	Panama requires employers to protect employees against accidents and occupational disease through the work injury component of Social Security Fund contributions, education insurance and occupational risk coverage or a legally approved policy. The obligation includes premium or levy payment, accident reporting and cooperation with medical or disability assessments. Coverage is not replaced by a private medical plan.
Public healthcare or mandatory medical coverage in Panama	Health protection in Panama is delivered through the medical or sickness branch of Social Security Fund contributions, education insurance and occupational risk coverage. Employers must register employees who meet the scheme’s coverage tests and remit the required payroll contribution on the prescribed wage base. The programme commonly provides medical treatment and cash sickness or maternity benefits, while eligibility for dependants, expatriates and higher earners follows the local institution’s rules.
Social Security Fund contributions, education insurance and occupational risk coverage	Employers in Panama must apply the contribution and registration rules for Social Security Fund contributions, education insurance and occupational risk coverage. Payroll should separately identify the employer funded amount and any employee deduction, use the statutory contribution wage or ceiling, and retain evidence of enrolment. The exact branches covered are those listed in the scheme, which can include retirement, health, unemployment or employment injury protection.
Optional
Housing, relocation and remote work support in Panama	Housing, relocation and remote work support in Panama is normally contractual rather than statutory. The policy should identify covered costs, taxable benefit treatment, repayment conditions for early departure and whether the support is temporary or continues throughout the assignment.
Meal, commuting and business travel support in Panama	Meal, commuting and business travel support in Panama should be split between fixed cash allowances and reimbursements supported by receipts. That distinction determines whether the amount is taxable salary, exempt expense repayment or part of the contribution wage. The policy should state limits, eligible journeys and the treatment of remote work.
Performance or profit sharing bonus in Panama	A performance or profit sharing bonus in Panama is optional unless promised by contract, collective agreement or an established plan. The rules should specify the performance period, measurable targets, proration for joiners and leavers, and treatment during protected leave. Payroll must apply local income tax and social contribution rules to the payment.
Supplementary private medical insurance in Panama	Private medical insurance in Panama should be designed around the gaps left by Social Security Fund contributions, education insurance and occupational risk coverage. Employers commonly add faster outpatient access, private hospital treatment, dental, optical, mental health and dependant cover. The policy remains optional unless a visa, emirate, collective agreement or sector rule makes insurance compulsory, and any taxable benefit treatment should be processed through payroll.

Taxes

Country Tax

Panama's country tax is known as Tax on the Transfer of Movable Personal Property and Services (ITBMS) 7%

Individual Tax

Tax Component	Contribution Rate (%)	Details
Taxable Income Adjustments
Main Deductions and Allowances	See details	Contributions up to 10% of gross salary or up to PAB15,000 to pension plans Personal deductions and allowances. Individuals are entitled to a PAB800 deduction when filing jointly with the spouse.
Income Tax Structure
Non-Resident Employment Income	See local nonresident rules	Nonresident individuals are generally taxed only on local source employment income. The applicable rate can differ from resident rates and depends on source, presence, payroll withholding, and treaty relief. Confirm the cited country summary before payroll implementation.
Resident Tax Rates	Up to 25%	Panama applies Up to 25% to taxable employment income. The employee’s final liability depends on taxable pay, permitted deductions or credits, and any local surtaxes stated in the cited source.
Taxable & Exempt Components
Bonuses and Cash Allowances	Generally taxable at marginal employment rate	In Panama, cash salary, commissions, performance bonuses, and recurring cash allowances are generally taxable employment income and subject to payroll withholding at the applicable marginal rate unless a specific statutory exemption applies.
Benefits in Kind	Taxable value at marginal rate where applicable	In Panama, employer provided housing, vehicles, meals, insurance, equity, and other noncash benefits may be taxable under local valuation rules. Business reimbursements and de minimis exemptions require local support.

More Countries

Explore hiring in other countries

Indonesia

CapitalJakarta

Employers Tax10.24% – 11.74%

Employers Tax13.95% – 14.95%

Employers Tax7.75% – 17.25%

Australia

CapitalCanberra

Employers Tax12.00% + variable

Bahrain

CapitalManama

Employers Tax7.20% – 18.00%

Bangladesh

CapitalDhaka

Employers TaxVariable

Brunei

CapitalBandar Seri Begawan

Employers Tax8.50% – 10.50% or BND 57.50

Employers Tax5.00% + variable

India

CapitalNew Delhi

Employers Tax15.75% + variable

Israel

CapitalJerusalem

Employers Tax17.01% – 20.10%

Japan

CapitalTokyo

Employers Tax16.46% – 25.21%

Employers Tax17.50% – 22.50%

Kuwait

CapitalKuwait City

Employers Tax0.00% – 11.50%

Employers Tax12.50% – 14.50%

Nepal

CapitalKathmandu

Employers Tax20.00% or scheme specific

New Zealand

CapitalWellington

Employers Tax3.50% + variable

Employers Tax11.00% + variable

Employers Tax0.00% – 14.00%

Employers Tax10.53% – 29.12%

Sri Lanka

CapitalSri Jayawardenepura Kotte

Employers Tax15.00%

Thailand

CapitalBangkok

Employers Tax5.20% – 6.00%

Employers Tax12.00% – 25.00%

Employers Tax16.40% – 19.40%

Botswana

CapitalGaborone

Employers TaxVariable

Employers Tax13.95% – 17.20%

Chad

CapitalN'Djamena

Employers Tax16.50%

Democratic Republic of the Congo

CapitalKinshasa

Employers Tax14.20% – 16.20%

Employers Tax5.00% + variable

Ivory Coast (Côte d’Ivoire)

CapitalYamoussoukro

Employers Tax15.45% – 18.45%

Kenya

CapitalNairobi

Employers Tax7.50% + variable

Lesotho

CapitalMaseru

Employers Tax1.00% + variable

Employers Tax10.00% + variable

Mali

CapitalBamako

Employers Tax17.90% – 20.90%

Employers Tax0.90% + variable

Employers Tax19.40% – 23.40%

Employers Tax2.00% + variable

Employers TaxAt least 22.50%

Employers Tax6.50% + variable

Zimbabwe

CapitalHarare

Employers Tax5.50% + variable

Employers Tax25.00% + variable

Bosnia and Herzegovina

CapitalSarajevo

Employers Tax0.00% – 6.00%

Bulgaria

CapitalSofia

Employers Tax18.92% – 19.62%

Employers Tax15.40% + variable

Employers TaxFixed amounts + variable

Employers Tax19.32% – 20.24% + variable

France

CapitalParis

Employers Tax25.00% – 45.00%

Employers Tax21.20% + variable

Employers TaxAt least 17.95%

Ireland

CapitalDublin

Employers Tax9.00% – 11.25%

Employers Tax7.20% + variable

Employers TaxAt least 12.57%

Employers TaxAt least 6.10% + variable

Employers Tax2.00% – 16.10% + variable

Poland

CapitalWarsaw

Employers Tax20.98% – 23.64%

Employers Tax2.25% – 10.25%

Employers Tax30.65% + variable

Employers Tax7.40% – 9.90% + variable

Ukraine

CapitalKyiv

Employers Tax8.41% – 22.00%

United Kingdom

CapitalLondon

Employers Tax18.00% – 18.50% + 15.00% on taxable benefits

Argentina

CapitalBuenos Aires

Employers Tax24.00% – 26.40% + variable

Employers Tax31.70% – 39.30%

Canada

CapitalOttawa

Employers Tax8.12% – 12.23% + variable

Chile

CapitalSantiago

Employers Tax5.87% – 6.47% + variable

Colombia

CapitalBogotá

Employers Tax30.02% – 36.46%

Costa Rica

CapitalSan José

Employers Tax26.83% + variable

Employers Tax11.15% + variable

CapitalGuatemala City

Employers Tax17.25% – 43.48% + 20.40% of UMA

Nicaragua

CapitalManagua

Employers Tax23.50% – 24.50%

Employers Tax9.75% + variable

Suriname

CapitalParamaribo

Employers Tax15.15% + variable

Trinidad and Tobago

CapitalPort of Spain

Employers TaxApproximately 8.80% + variable

United States

CapitalWashington, D.C.

Employers Tax8.25% + variable

Uruguay

CapitalMontevideo

Employers Tax12.60% + variable

Saudi Arabia

CapitalRiyadh

Employers Tax2.00% – 12.25%

United Arab Emirates

CapitalAbu Dhabi

Employers Tax0.00% – 15.00% + variable GCC rate

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Explore Panama's Employment Essentials

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