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 | 13.25% | National government, 2026-09-12 |
| Corporate tax | 25% | PwC Worldwide Tax Summaries, 2026-08-04 |
| Notice period | None | National government, 2026-10-11 |
| Severance | 18.1 weeks | National government, 2026-09-12 |
| Annual leave (minimum, once eligible) | 22 | National government, 2026-09-12 |
| Public holidays | 12 | National government, 2022-03-01 |
| Maternity leave | 14 weeks | National government, 2026-09-12 |
As of 2026-10-11. 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
Employees in Panama earn an average of PAB 929 per month and work 41 hours per week, according to ILOSTAT's 2025 figures. On top of wages, employers pay a 13.25% social security rate, and a 13th salary is mandatory. Ending an employment relationship carries a statutory severance of 18.1 weeks, while the statutory notice period is none (0 weeks). Employees are owed 22 days of statutory annual leave and 12 public holidays, plus 14 weeks of maternity leave and 0.6 weeks of paternity leave. The corporate tax rate stands at 25%, matching the top personal income tax rate of 25%. Inflation was -0.19% in 2025, and unemployment was 8.36%. The labour force numbers 2.3 million people, of whom 26.32% belong to unions, while collective bargaining covers 2%.
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 2026-10-11. 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
Checked against official sources on 11 October 2026
No rule changes recorded since we began logging them.
Corrections to our data
- Notice periodCorrected 11 October 2026
Now None, was 4.3 weeks. No statutory notice applies when a standard employee is dismissed for economic reasons. The employer must prove the economic cause to the labour authority (art. 213 and 215) and pay the art. 225 indemnity. The 30-day notice we showed before applies only to the categories in art. 212.
Source → - Public holidaysCorrected 11 October 2026
Now 12 days, was 11 days. Codigo de Trabajo art. 46 as amended (Ley 157 of 2022 added 20 Dec Dia de Duelo Nacional): 1 Jan, 9 Jan, Carnival Tuesday, Good Friday, 1 May, 3 Nov, 5 Nov, 10 Nov, 28 Nov, 8 Dec, 20 Dec, 25 Dec = 12 obligatory paid rest days.
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.