2026 Panama Minimum Wage: New Sector Rates and Employer Action Guide
Panama updated its minimum wage rates under Executive Decree No. 13 of December 31, 2025. .
🗓️ Effective: January 16, 2024Panama updated its minimum wage rates under Executive Decree No. 13 of December 31, 2025. Because Panama’s minimum wage is sector-based and may vary by activity, region, and occupation, employers should confirm the applicable rate before processing payroll or preparing employment budgets.
Panama Minimum Wage 2026: Employer Planning Table
| Item | 2026 Information | Employer Action |
|---|---|---|
| Country | Panama | Confirm employee work location and sector. |
| Legal Basis | Executive Decree No. 13 of Dec. 31, 2025 | Use the current decree, not the 2024 wage table. |
| Wage Structure | Sector-based and region/activity-specific | Check the correct wage category before payroll. |
| Effective Period | 2026 wage cycle | Update payroll systems and employment budgets. |
| Risk Area | Applying the wrong sector or region rate | Review job classification and work location. |
FAQs
What changed in Panama’s 2026 minimum wage rules?
Panama updated its minimum wage rates under Executive Decree No. 13 of December 31, 2025. Rates vary by sector, activity, region, and occupation.
Is Panama’s minimum wage the same for all employees?
No. Panama’s minimum wage is sector-based and may differ depending on the employee’s activity, occupation, region, and industry classification.
What should employers check before running payroll in Panama?
Employers should confirm the employee’s work location, industry category, applicable wage table, employment contract terms, and payroll setup.
Why is minimum wage compliance in Panama more complex than a single national rate?
Because Panama uses different wage rates by sector, region, and occupation, employers must identify the correct wage category before applying payroll calculations.