Manage Payroll Tax in Panama

Taxes in Panama

Learn how employment taxes affect your payroll and your employees’ paychecks in Panama.

Employer

12.50 %

Seguro Social (Social Security Contribution)

8.33 %

Decimo Tercer Mes (13th Pay)

1.50 %

Seguro Educativo (Educational Insurance)

0.98 %

Riesgo Profesional (Accident insurance)

0.90 %

Seguro Social del Décimo Tercer Mes (Social Security on 13th Month Compensation)

Employee

9.75 %

Social security

0.98 %

Riesgo Profesional (Accident insurance)

Personal Income Tax Rates

0 - 0 %

$11,000

15 %

$11,000 - $50,000

25 %

$50,000 and above