Panama
EOR Rate
$599
/month per employee

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Country Snapshot

Currency

PAB

Timezone

UTC-5

Minimum Wage

3.13 PAB/Hour

Payroll Frequency

Monthly

Employment Type

Full-time

Panama is a regional logistics and financial hub in Central America.

General Information

CapitalPanama City
Population4,571,189
TimezoneUTC-5
Official LanguageSpanish

Employment Laws

Working Hours48 hours/week
Minimum Wage3.13 PAB/Hour
Probation PeriodUp to 3 months
Notice Period15–30 days

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Leave Entitlements

Annual Leave30 days
Public Holidays12 days
Sick LeavePaid
Maternity Leave14 weeks
Paternity Leave3 days

Social Security

Employer Rate12%
Employee Rate9%

CSS (Social Security Fund)

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Gini Talent can recruit qualified candidates and employ them through EOR in Panama.

Taxation

Corporate Tax24.9%

Territorial tax system

Termination Rules

Notice + severance mandatory

Bonus Requirements:

No mandatory bonus

Additional Information

EOR arrangements in Panama require compliance with labor laws covering contracts, social security enrollment, and statutory benefits. Payroll administration includes mandatory contributions and regulated deductions. Termination procedures are formalized and may involve severance obligations. Labor enforcement is active. An EOR ensures compliant employment administration.

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