Panama government approved new rates for Minimum Wage
New salaries will be effective as of January 16, 2022.
On December 31, 2021, the increase in the Minimum Wage rate was approved throughout the national territory, by means of Executive Decree No. 74 of December 31, 2021.
The new Salary rate was set at an adjustment of:
– 1.5%, on activities related to agriculture, fishing, and livestock farming.
– 2.0% on services and supplies; and
– 5.0 % on domestic service.
New salaries will arise approximately between the monthly amounts of US$326.56 and US$971.35.
According to the effective date of application on January 16, 2022, we strongly recommend taking the necessary measures, to apply Executive Decree No. 74, as it has been announced that omission may result in administrative penalties, according to the Labor Code provisions.