Employer of record in Panama
24 sourced figures on hiring in Panama, drawn from 5 sources and normalized for comparison: statutory rules, employer cost and exactly what an EOR covers locally. Every figure is dated.
Hiring here: moderately complex, mid-range on cost, and fast to hire via EOR.
Employer of record in Panama: the statutory snapshot
The headline employer costs, pay floor and worker protections for hiring in Panama through an employer of record, each figure sourced and dated. 33 EOR providers cover Panama.
| Minimum wage | PAB 482/mo | ILOSTAT, 2024-01-01 |
|---|---|---|
| Employer social security | 14.5% | ISSA Country Profiles, 2024-01-01 |
| Corporate tax | 25% | PwC Worldwide Tax Summaries, 2026-08-04 |
| Notice period | 4.3 weeks | National government, 2026-09-12 |
| Severance | 18.1 weeks | National government, 2026-09-12 |
| Annual leave (minimum, once eligible) | 22 | National government, 2026-09-12 |
| Public holidays | 11 | National government, 2026-10-05 |
| Maternity leave | 14 weeks | National government, 2026-09-12 |
As of 2026-10-05. Each value is the winning figure from primary and harmonized sources, resolved by a documented priority chain. Full record with provenance below.
Reading the data
What the figures say about Panama
Panama sets its statutory minimum wage at PAB 482 per month, against an average monthly wage of PAB 929, and adds a mandatory 13th salary on top of regular pay. Employers contribute 14.5% to social security while employees contribute 9.75%, and corporate tax stands at 25%, matching the top personal income tax rate. The standard workweek runs 41 hours, with 13 public holidays and 14 weeks of maternity leave against 0.4 weeks of paternity leave. Ending employment involves statutory severance of 18.1 weeks plus a notice period of 4.3 weeks. Retirement age is set at 62 years, and collective bargaining covers 2% of workers despite union density of 26.32%. The unemployment rate sits at 8.36%, alongside GDP per capita of $19790 and a labour force of 2.3 million people.
Where to start
Three ways to hire in Panama
You are the employer. Lowest per head cost at scale, months to establish.
You direct the work, the provider's local entity is the employer on paper. Compliant in days.
See the 33 providers below ↓Not your employee. Fastest and cheapest, with misclassification exposure.
The full record
Every figure behind the snapshot
Not a guide, a record: 24 figures for Panama from 5 sources, last refreshed 2026-10-05. Each value carries its source and the date it was pulled. Hover any provenance tag for the full chain.
Average monthly earnings in Panama by occupation (2025)
Gross monthly earnings of employees per ISCO-08 major occupation group, in PAB — the official ILOSTAT survey figures, not estimates. Use them to sanity-check an offer before an EOR quote turns it into total employer cost.
| Occupation group | Monthly (PAB) | ≈ USD |
|---|---|---|
| All occupations | 929 | $929 |
| Managers · ISCO 1 | 1,823 | $1,823 |
| Professionals · ISCO 2 | 1,636 | $1,636 |
| Technicians and associate professionals · ISCO 3 | 1,084 | $1,084 |
| Clerical support workers · ISCO 4 | 822 | $822 |
| Service and sales workers · ISCO 5 | 686 | $686 |
| Skilled agricultural, forestry and fishery workers · ISCO 6 | 522 | $522 |
| Craft and related trades workers · ISCO 7 | 727 | $727 |
| Plant and machine operators and assemblers · ISCO 8 | 829 | $829 |
| Elementary occupations · ISCO 9 | 449 | $449 |
Source: ILOSTAT (EAR_EMTA, employees, both sexes), reference year 2025. Survey earnings differ from statutory minimums above.
// recent updates
What changed in Panama
Figures refreshed as newer, more current sources replaced older ones
- Notice periodSep 12, 2026
Now 4.3 weeks, from 0 weeks. Source: National government (was World Bank Employing Workers / B-READY).
Source →
Every figure is sourced and dated. How we verify the data →
The differentiator
What an EOR handles in Panama
An EOR removes the entity and the payroll machinery. It does not remove your obligations as the people manager.
Provider × country
Who can employ in Panama
32 providers operate an EOR in Panama, ranked by Select Score.
Comparing EOR options for Panama?
Run a side-by-side on the providers that actually operate there.