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Contractor Management
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Grow your team
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Benefits Guide
Employing in Panama
The Panamanian Labour 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.
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The minimum wage is determined by activity, company size, and region. Salaries higher than the new minimum wage will remain valid.
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For customers of Remote, all employee payments will be made in equal semi-monthly instalments.
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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.
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The 13th pay is mandatory in Panama and this payment accounts to one month of additional pay per year. It is paid out in three instalments over April, August, and December.
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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.
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14 Public holidays
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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. Sign up now to get started or talk to an expert for more details.
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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.