Panama has a new minimum wage.
As of January 1, 2018, workers will now earn an average 6.5% more in large companies in Region 1 or a minimum wage of $721 if the math is correct. Employees of small businesses – those with 10 or less permanent or plant workers in agricultural, livestock or service or retail businesses; 15 or less in manufacturing companies; and 20 or less in agroindustrial companies – will earn an average of 4.5% more a month.
Increases are calculated at an hourly rate, by region and economic activity. Employees may compute their monthly wages by referring to the official rate table, multiplying the appropriate rate by hours worked and then by 4.33, the average weeks worked as recommended by the Ministry of Labor.
Region 1 includes Panama, Colon, San Miguelito, David, Santiago, Chitre, Aguadulce, Penonome, Bocas del Toro, La Chorrera, Arraijan, Capira, Chame, Anton, Nata, Las Tablas, Bugaba, Boquete, Taboga, San Carlos, Chepo, Guarare, Los Santos, Pedasi, Dolega, San Felix, Baru, Boqueron, Portobelo, Donoso, Santa Isabel, Santa Maria, Parita, Pese, Atalaya, Changuinola and Chiriqui Grande. Region 2 includes the rest of the country.
See the full decree detailing Panama’s new minimum wage here.