On January 6, 2026, Executive Decree No. 13 of December 31, 2025, issued by the Ministry of Labor and Workforce Development, was published in the Official Gazette. The Decree establishes the new minimum wage rates in Panama, which will enter into force on January 16, 2026.

The adjustment to the hourly minimum wage varies depending on the economic activity or sector, the region, and, in many cases, the size of the company. Likewise, specific minimum wages are established based on the relevant activity, occupation, or profession.

The Decree also introduces a new monthly minimum wage for domestic workers, adjusted by region.

These rates represent the minimum remuneration that employers are required to pay their employees in accordance with the applicable activity, region, or profession. As provided under the current legal framework, minimum wages are set every two years by the Executive Branch, following the recommendation of the National Minimum Wage Commission.

For further information and legal advice on this or other labor law matters, we remain at your disposal. Please contact us at gvasquez@gala.com.pa.