Effective as of January 16, 2026

On Tuesday, January 6, 2026, the Executive Branch published Executive Decree No. 13 of December 31, 2025, establishing the new minimum wage rates applicable nationwide, which will enter into force on January 16, 2026.

Key approved adjustments

Among the most relevant increases are the following:

• USD 9.50 per month for regions 1 and 2 in the retail trade sector.
• USD 9.50 per month for region 1 in the wholesale trade sector.
• Domestic workers:
  • USD 350.00 per month for Region 1.
  • USD 320.00 per month for Region 2.
• Among other adjustments applicable by economic activity and region.

Overall, the approved increases represent an approximate adjustment of 1.34%.

Scope of application

This adjustment applies exclusively to employees whose current wages fall below the newly established legal minimum and therefore does not require a general salary increase for employees whose compensation already exceeds the applicable minimum wage.

Legal recommendation

Given the January 16, 2026, effective date, employers are advised to timely review their payroll structures and take the necessary measures to ensure compliance with Executive Decree No. 13 of December 31, 2025, as failure to comply with minimum wage regulations may result in administrative sanctions, in accordance with the Panamanian Labor Code.

 

Official reference

The specific minimum wage rates by economic activity and region may be consulted in the Official Gazette: https://www.gacetaoficial.gob.pa/pdfTemp/30438/GacetaNo_30438_20260106.pdf