esen
ARTICLES

Panama Government Approved New Rates for Minimum Wage

On January 10, 2024, the Executive Body established the new minimum wage rates that will govern throughout the national territory as of January 16, 2024, through Executive Decree No. 1 of January 10, 2024.

The new wage rate was set with an adjustment of:

– 4.5% for small businesses

– 6.0% for large companies

– 7.0% for banana companies

– US$340.00 per month for domestic workers in Region 1 and US$315.00 for Region 2.

This adjustment would be applied to workers whose salary is lower after this new provision, so it would not be necessary to adjust workers’ wages when their income exceeds the current legal minimum rate.

According to its effective date of January 16, 2024, we recommend that you take the necessary measures to apply Executive Decree No. 1 since it has been announced that non-compliance will entail administrative sanctions, as established by the Labor Code.

Consult the specific rates by activity and region at:

https://www.gacetaoficial.gob.pa/pdfTemp/29946_A/102409.pdf

Author

Lourdes Bishop

Partner

Related practice areas