Minimum wage in Panama (2026)

By the HRPricing editorial teamReviewed October 18, 2026How we research and score

We may earn a commission when you sign up through some links on this page. Commissions never change our scores or the order of our lists. How we make money.

Panama's 2026 minimum wages are set by Executive Decree No. 13 of December 31, 2025, published in Gaceta Oficial No. 30438 on January 6, 2026, with rates by activity, occupation, company size and region rather than one national figure. We could not read its rate tables, so we quote no amount. The confirmed cost on top is the 13.25% CSS employer quota, and since the balboa is pegged 1:1 to the dollar, wages are already dollar figures.

Panama's minimum wage is a set of rates fixed by executive decree for each activity and region.

Next change
None announced
See Deel pricing on Deel’s site
On this page
  1. One decree, many rates
  2. What is not confirmed
  3. The CSS quota on top of pay
  4. Hiring in Panama through an EOR

One decree, many rates

Decree 13 replaced Executive Decree No. 01 of January 10, 2024. Region 1 takes in districts such as Panamá, Colón, San Miguelito, David, Santiago and La Chorrera; Region 2 covers the rest. Within each region the rate depends on the activity and sometimes company size, and it is stated per hour.

What is not confirmed

The Gaceta PDF does not carry the tables as readable text, and the labor ministry (MITRADEL) copy blocked our reading. So the hourly amounts, the effective date, the 2024 rates and the next review date are all unconfirmed. Ask any provider to cite the activity and region it applied from Decree 13.

The CSS quota on top of pay

The CSS employer quota is 13.25% of salary from the April 2025 through the February 2027 contribution months, the first step of a three-point rise under Law 462 of 2025 (CSS press release, March 21, 2025): $5,300 a year on a $40,000 salary. Educational insurance, occupational risk and the 13th-month payment (décimo tercer mes) add more at rates we have not confirmed, so our Panama EOR guide treats 13.25% as partial.

Hiring in Panama through an EOR

An employer of record can apply the right rate and register the worker with the CSS. Fees run from $99 a month (Native Teams; its help center says EUR 99) to $699 (Oyster), checked October 2026. Deel's $599 is $7,188 a year, more than the CSS quota on $40,000. See EOR prices compared and the employer cost index.

See Deel EOR pricing on Deel’s site

Nearby: Costa Rica's minimum wages and Colombia's minimum wage.

For comparison, see the minimum wage in Guatemala and the minimum wage in the Dominican Republic.

Frequently asked questions

What is the minimum wage in Panama in 2026?
There is no single rate. Executive Decree No. 13 of December 31, 2025 sets rates by activity, size and region; we could not read its tables, so we quote no amount.
Is Panama's minimum wage in US dollars?
In effect, yes: the balboa is pegged 1:1 to the dollar, which also circulates as legal tender (US Treasury, September 30, 2026).
What are Region 1 and Region 2 in Panama?
Region 1 covers districts such as Panamá, Colón, San Miguelito and David; Region 2 covers the rest. Decree 13 of 2025 sets separate rates for each.
What does an employer pay on top of salary in Panama?
The CSS employer quota of 13.25% (CSS, March 21, 2025), $5,300 a year on $40,000, plus educational insurance, occupational risk and the 13th month.
Sources (6)
  1. Caja de Seguro Social: Employer quota increase from April 2025 (press release) (March 21, 2025, checked Oct 17, 2026)
  2. U.S. Department of the Treasury: Treasury Reporting Rates of Exchange (quarter ended Sep 30, 2026, checked Oct 18, 2026)
  3. Native Teams: Native Teams pricing (checked Oct 18, 2026)
  4. Oyster: Oyster pricing (checked Oct 16, 2026)
  5. Deel: Deel pricing (checked Oct 16, 2026)
  6. Gaceta Oficial Digital No. 30438 (6 Jan 2026), index listing Decreto Ejecutivo No. 13 of 31 Dec 2025: Gaceta Oficial Digital No. 30438 (6 Jan 2026), index listing Decreto Ejecutivo No. 13 of 31 Dec 2025 (checked October 18, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.