Source:
CIA - The world factbook
; UN - United Nations
; World Bank
Note: (e) Estimated data
Working conditions
Legal weekly duration
Panamanian labor law allows 4 work shifts per day.
1) Day work of 8 hours maximum per day and 48 hours per week which should take place between 6 AM and 6 PM. 2) Night work of 7 hours maximum per day and 42 hours per week which should take place between 6 PM and 6 AM. 3) Mixed work (night and day) of 7.30 hours maximum per day and 45 hours per week which should take place during the two cycles of work. More than 3 nights per week the other periods are automatically considered as night. 4) Rotating cycle when the company needs staff during the different shifts.
Retirement age
57 years for women and 62 years for men.
Working contracts
The employment contracts are regulated by legal clauses and to a lesser degree by collective agreements and individual negotiations. The terms of employment contracts, the conditions of hiring and dismissal are strict.
Cost of labor
Minimum wage
US $310
Average wage
The average monthly salary is around USD 500 in the public sector and around USD 420 in the private sector. Salaries are paid every two weeks and the 13th month is spread out over 3 payments in the months of April, August and December.
Social contributions
Social security contributions paid by employers: 10.75%.
Social security contributions paid by employees: 7.25%.
Social partners
Social dialogue and involvement of social partners
Private sector workers have a right to form and to join unions of their choice. Public sector employees do not have a right to form unions. Government workers can form "associations" and negotiate collectively but only if they have a minimum of 50 members.
Labour market
Panama
Print the page
The active population in figures | Working conditions | Cost of labor | Social partners
The active population in figures
Source: CIA - The world factbook ; UN - United Nations ; World Bank
Note: (e) Estimated data
Working conditions
1) Day work of 8 hours maximum per day and 48 hours per week which should take place between 6 AM and 6 PM. 2) Night work of 7 hours maximum per day and 42 hours per week which should take place between 6 PM and 6 AM. 3) Mixed work (night and day) of 7.30 hours maximum per day and 45 hours per week which should take place during the two cycles of work. More than 3 nights per week the other periods are automatically considered as night. 4) Rotating cycle when the company needs staff during the different shifts.
The terms of employment contracts, the conditions of hiring and dismissal are strict.
Cost of labor
Social security contributions paid by employees: 7.25%.
Social partners
Unique National Union of the Building and related Industries (SUNTRACS) (Spanish only)
© Export Entreprises SA, all rights reserved.
Last updates: May 2012