Panama
Make employment in Panama easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Panama, all in one easy-to-use platform.
- Capital City
Panama City
- Currency
United States Dollar ($, USD)
- Languages
Spanish
- Population size
4,176,869
Facts & Stats
- Capital City
Panama City
- Currency
United States Dollar ($, USD)
- Languages
Spanish
- Population size
4,176,869
- Ease of doing business
Easy
- Cost of living index
$$$ (2021)
- Payroll frequency
Semi-Monthly
- VAT - standard rate
7%
- GDP - real growth rate
3.0 (2019)
The Republic of Panama (República del Panama) is a unitary presidential republic split across North and South America and that’s home to the famed Panama hat, a canal connecting the Atlantic and Pacific, and more biodiversity that the United States, Canada, and Europe combined.
Panama is a high-income economy with a strong performance in banking, commerce, tourism, and transportation, all of which has cemented its place as Latin America’s seventh strongest economy.
Grow your team in Panama with Remote
Want to employ workers in Panama? Companies hiring in Panama are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Panama and keep you compliant. Remote can hire, onboard, and pay your Panama team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Panama. now to get started or talk to an expert for more details.
Risks of misclassification
Panama, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Panama may lead to fines and penalties for the offending company.
Employing in Panama
The Panamanian Labor Code of 1971 spells out provisions for employee protections and workers’ rights for Panama’s workforce of just under 2 million.
Employees in Panama enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Panama.
Minimum Wage
The minimum wage is determined by activity, company size, and region. Salaries higher than the new minimum wage will remain valid.
Payroll Cycle
For customers of Remote, all employee payments will be made in equal semi-monthly instalments.
Wet Signature Requirement
Please note that Employment Agreements must be signed in Panama by a Panamanian national or legal resident. Documents cannot be signed digitally, they must be signed in wet-ink in the country. The document must be an original, so scanned signatures will not work.
Decimo Tercer Mes - 13th Salary
The 13th salary is mandatory in Panama and this payment accounts to one month of additional pay per year. It is paid out in three installments over April, August, and December.
Onboarding Time
We can help you get a new employee started in Panama fast. The minimum onboarding time we need is only 6 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
14 Public holidays
Want to see and manage all holidays? Sign up for our free HRIS!
Effortless HR Panama: Take the Tour
Competitive benefits package in Panama
At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and that your company has the localized expertise needed to attract and keep the best global talent.
Our benefits packages in Panama are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Fair Pricing in Panama
Employer of Record
$599
per employee/month
Top features
Hire without opening a local entity
Guided onboarding
Local payroll paid on time, every time
Built-in security and compliance
Flexible, localized benefits
Offer equity incentives with tax assistance
Dedicated experts for local support
Contractor Management
$29
per contractor/month
Top features
Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Payroll
$29
per employee/month
Top features
Powerful, transparent international payroll
Simple self-service platform
Personalized support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated payroll, expense management, and HRIS solution
Top features
Guided onboarding and offboarding
Employee profile and document management
Contract templates and e-signing
Time off and time tracking
Expense management
Employee and manager self-serve experiencea
Mobile app