Panama is the country that links Central and South America. It is ranked 65.4 in the freedom score, thus making it the 56th freest country in 2022. Panama has seen significant growth in GDP in 2021, with the country’s major contributors from services and industries. Out of 32, Panama holds the rank of 11th in the Americas region for economic development.
Panama City, Chitre and Santiago
Engineer, HR Manager, Software engineer
The top local universities in Panama with rankings are mentioned below:
The salary of some of the common jobs in Panama are as follows:
|Job Title||Average Monthly Salary (PAB)||Average Monthly Salary (USD)|
|Financial Manager||4170 PAB||4170 USD|
|General Manager||3460 PAB||3460 USD|
|Business Development Manager||3360 PAB||3360 USD|
|Financial Analyst||2690 PAB||2690 USD|
|Business Analyst||2640 PAB||2640 USD|
|Project Manager||2310 PAB||2310 USD|
The payroll cycle in Panama is Monthly.
The minimum wage in Panama ranges from 1.91 PAB to 3.20 PAB per hour.
The overtime pay in Panama is 125% of the regular wage if the overtime is done in a working day, whereas the 150% for the work on a holiday or rest day. If the overtime is done at night shift, the pay increases to 175% of the regular wage.
The 13th-month pay is mandatory in Panama, and it is given in three installments, April 15, August 15, and December 15.
|Social Security Tax||12.25%|
|Education Insurance Tax||1.5%|
|Social Security Tax||9.75%|
|Education Insurance Tax||1.25%|
|Annual Taxable Income||Tax on Column 1||Tax on excess|
|0 to 11,000 PAB||0||0|
|11,000 to 50,000 PAB||0||15%|
|Above 50,000 PAB||5,850||25%|
The standard rate of Value Added Tax in Panama is 7%.
Termination in Panama depends on the employment agreement between both parties or a collective agreement. Both the parties can terminate the contract based on mutual agreement or with a proper reason of dismissal from the employer.
The notice period in Panama is 30 days.
In Panama, the severance pay is 3.4 weeks for each year worked. However, severance pay is only provided if there is an unjustified dismissal.
According to the National Immigration Service Panama, any individual who needs a work visa or permit, needs to present all the personal documents along with an employer offer letter. However the documents must be translated into spanish language. The work permit allows an individual to stay for 9 months within the country, which further can be renewed.