Comprehensive Employment and Tax Guide Panama
General Overview
- Currency: Panamanian Balboa (PAB)
- Languages: Spanish
- Public Holidays: 13 days
- Capital: Panama City
- Fiscal Year: 1 January - 31 December
- Minimum Hourly Wage: 2.50 PAB/hour
Tax Essentials
- Income Tax Range: 7-25%
- Other Taxes: VAT 7%
Social Security Contributions
- Employer Charges: Employer contributions 18.75%
- Employee Charges: Employee contributions 9.75%
Employment Contracts & Conditions
- Contract Types: Permanent, Temporary
- Trial Periods: Up to 3 months
- Paid Holiday: 15 days per year
- Salary Payment Frequencies: Monthly
- Termination Notice: 1 month
Legal Benefits for Employees
- Medical Coverage: Public healthcare system
- Common Non-Compulsory Benefits: Housing allowance, meal vouchers
Hiring Non citizen or resident
- Visa & Work Permits Obligation: Mandatory for non-citizens
- High-Skilled Worker Permits: Yes, specific work visa
- Visa & Work Permits Timelines: Mercosur visa available; Work visas processed within 2-4 months
The information provided on these countries serves as a general guideline and may
require verification and updates from legal sources or official websites.
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