Minimum Salary Increases in Panama

By the Executive Decree 75 of December 26, 2017, the Government of the Republic of Panama announced an increase in the minimum salary, beginning on January 1, 2018. The salary adjustment percentages vary from 6.5% for the large companies to around 4.5% for the small companies.

The rates set by the Decree constitute the minimum remuneration for the employees and modify the lower salaries already stipulated. Also, the salaries that are established or would be established in any norm regarding a higher salary or remuneration, being higher than those set in the Decree, will continue in force.

For more information, we have included a copy of the Decree (in Spanish) in the following link.

If you want any advise regarding this topic or any other related to Labor Law please do not hesitate to contact us (bchanis@gala.com.pa or gvasquez@gala.com.pa).

We are at your disposal.

GALINDO, ARIAS & LÓPEZ