Minimum wage increase in Panama

The average rise is 3.3%, varying from 1% to 8% depending on economic activity, and will be in effect from January 15, 2020.

Tuesday, January 7, 2020

In the case of the education sector, free zones, hotels, agriculture and water supply the increase will be 1%, while in the area of Bocas del Toro where banana companies operate the adjustment will be 8%.

An official statement explains that "... The new adjustment to the minimum wage, together with the more than one billion balboas that the government has paid in arrears that the State had with different sectors and suppliers, seeks to impact the reactivation of the economy.

The two minimum wage regions are maintained in the new decree. Currently there are 37 minimum wage levels, for 85 economic activities, in at least 11 occupations.

According to Doris Zapata, Minister of Labor and Labor Development, the adjustment for most workers who are in the minimum wage range would be 3.3%.

See Executive Decree on the minimum wage.

¿Busca soluciones de inteligencia comercial para su empresa?

More on this topic

Nicaragua: Minimum Wage Increases 2.6

February 2020

In a context of a sharp drop in economic activity, the government decided to increase the minimum wage by 2.63% as of 1 March.

The increase, which was agreed by the Ministry of Labor and which will affect ten economic activities, was endorsed by the authorities on 6 February. Workers in free zones will be the only ones not to be subject to this increase, since wages in this sector were raised at the beginning of the year.

Guatemala: Changes in Minimum Wage by 2020

January 2020

For workers in non-agricultural, maquila and export activities, the minimum wage will increase by 3% this year in relation to what was paid in 2019.

Government agreement 320-2019, published in Diario de Centroamérica on December 30, 2019, specifies that the minimum monthly wage for agricultural activities will remain unchanged for the second consecutive year, and will continue at $388.12.

Minimum Wage: Negotiation begins in Panama

October 2019

The union sector aims for a minimum wage of $1,040 by 2020, but employers say the current economic situation does not lend itself to substantial increases.

Workers, employers and government representatives in Panama are discussing adjustments to the minimum wage, the changes to which must come into effect on January 1, 2020.

Honduras: A Rise in Minimum Wage Governs

January 2019

From January 1, 2019, the minimum wage increase came into effect, which will be paid in accordance with economic activities and company size in relation to the number of workers.

From the COHEP statement:

The Honduran Council of Private Enterprise (COHEP), with the purpose of informing Honduran companies and society about the Minimum Wage Agreement that will govern the country during 2019 and 2020, announces the following: