Panama Minimum Wage 2026: Executive Decree No. 13 Rates by Region and Activity
Panama’s minimum wages for 2026 are set by Executive Decree No. 13 of 31 December 2025, published in the Gaceta Oficial on 6 January 2026 and in force since 16 January 2026. There is no single national rate: the decree sets mostly hourly minimums that vary by region, economic activity, occupation and, in some activities, company size. It replaced Executive Decree No. 1 of 10 January 2024, and the Labour Code requires a review at least every two years.
| Item | Current rule | Official source |
|---|---|---|
| Current decree | Executive Decree No. 13 of 31 December 2025 | MITRADEL – El salario mínimo en Panamá |
| Publication and start date | Gaceta Oficial No. 30438 of 6 January 2026; in force from 16 January 2026 | EY Law Alert – Panamá salario mínimo 2026 (professional source) |
| How rates are set | Mostly hourly rates by region, economic activity, occupation and company size | EY Law Alert – Panamá salario mínimo 2026 (professional source) |
| Regions | Region 1: listed districts including Panamá, San Miguelito, Colón, David, Santiago and La Chorrera; Region 2: all other districts | EY Law Alert – Panamá salario mínimo 2026 (professional source) |
| Previous decree | Executive Decree No. 1 of 10 January 2024 (repealed) | EY Law Alert – Panamá salario mínimo 2026 (professional source) |
| Review cycle | At least every 2 years (Labour Code Art. 174), after a tripartite commission | MITRADEL – El salario mínimo en Panamá |
| 13th-month pay on top | One-twelfth of pay earned, paid on 15 April, 15 August and 15 December | MITRADEL – Cálculo de prestaciones |
What the rule is now
The salario mínimo [minimum wage] in force is set by Executive Decree No. 13 of 31 December 2025. It was published in Gaceta Oficial No. 30438 on 6 January 2026 and has applied since 16 January 2026 (EY). It repealed Executive Decree No. 1 of 10 January 2024.
How the structure works
Panama does not have one national minimum wage. The decree sets minimum rates, mostly per hour, that depend on four factors:
- Region: Region 1 covers listed districts, including Panamá, San Miguelito, Colón, David, Santiago and La Chorrera. Region 2 covers the rest of the country, and its rates are generally lower.
- Economic activity: each sector of the economy has its own rates.
- Occupation: some activities set separate rates for specific jobs.
- Company size: in some activities, the rate differs between smaller and larger companies.
The Ministry of Labour (MITRADEL) publishes an online consultation tool that returns the rate for a given region, activity and province (MITRADEL).
Who it applies to
The decree applies to private-sector employees in Panama, whatever their nationality, including foreign workers on MITRADEL work permits. The rate depends on where the work is done and the employer’s activity, not on where the employer is registered. A monthly salary must be at least the hourly rate multiplied by the hours worked. Daytime work is limited to 8 hours a day and 48 hours a week under the Labour Code, and overtime is paid on top.
What employers need to do
- Look up the rate for the region, activity and province of each workplace in MITRADEL’s tool or in the decree.
- Check whether your activity uses company-size categories, and which one applies to you.
- Convert hourly rates into monthly pay using actual working hours, and check every salary against them.
- Include the higher base pay in 13th-month pay (paid on 15 April, 15 August and 15 December), vacation pay and social security.
- Re-check pay whenever a new decree is published.
How it has changed
- Legal basis: the Constitution (Art. 66) and the Labour Code (Arts. 172–180) provide for minimum wages, set after the work of a tripartite National Minimum Wage Commission of employers, workers and government.
- January 2024: Executive Decree No. 1 of 10 January 2024 set the previous rates.
- 16 January 2026: Executive Decree No. 13 replaced it, about two years later.
- Next review: the Labour Code requires the minimum wage to be reviewed at least every two years, so employers should expect the next decree within two years of the current one.
FAQs: Panama Minimum Wage 2026
What is the minimum wage in Panama in 2026?
There is no single figure. Executive Decree No. 13 of 31 December 2025, in force since 16 January 2026, sets mostly hourly minimum wages that vary by region, economic activity, occupation and, in some activities, company size. Use MITRADEL’s online tool or the decree to find the rate for your activity and district.
Is the minimum wage in Panama hourly or monthly?
Most rates in the decree are hourly. Employers paying a monthly salary must make sure it is at least the hourly minimum multiplied by the hours worked, with overtime paid on top. The 13th-month pay, vacation pay and social security contributions are then calculated on the actual salary.
Which areas are in Region 1 for Panama’s minimum wage?
Region 1 covers the districts listed in the decree, including Panamá, San Miguelito, Colón, David, Santiago and La Chorrera. All other districts form Region 2, which generally has lower rates. Check the decree’s district list for the exact place where the employee works.
When will Panama’s minimum wage change next?
The Labour Code requires a review at least every two years. The current rates have applied since 16 January 2026 and replaced those set in January 2024, so the next decree is expected within two years of the current one. Check MITRADEL announcements before each new budget year.
Related NNRoad resources: Panama employment law guide · Employer of Record in Panama · Payroll in Panama · Hiring foreign employees in Panama · Panama employer cost calculator
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