New mandatory minimum wage for Panama

Arias | On 6 January, 2026, the Ministry of Labor issued Executive Decree No. 13 of December 31, 2025, pursuant to which a new mandatory minimum wage rates will apply throughout the national territory, based on region, economic activity, occupation, and company size.

Below, we outline the key aspects to consider:
How is the minimum wage set?
The new minimum wage is set differently for two regions that cover the entire country. In addition, it varies according to the number of workers (size of the company), operations (business activity) and occupation.

How much will the minimum wage increase in 2026?
The approved adjustment will impact more than 400,000 workers nationwide and represent an improvement compared to the rates currently in force. Thus, for the next two years, a general increase in the minimum wage was agreed with raises ranging from $9.50 to $15.00 per month.

As for when must the new minimum wage be paid?
The new amounts will take effect on January 16, 2026, and will remain in force for the 2026–2027 period.

ariaslaw.com