The country's business sector proposes that elements such as productivity, economic growth and the level of formality be taken into account when calculating the minimum wage, instead of the decision only revolving around the basic basket variable.
The possible changes to the minimum wage in the country is an issue generating expectations among the different sectors, since in the next few days the National Salary Commission (CNS) will have to discuss the proposals to decide if it increases or decreases.
The private sector has highlighted the importance of adapting wages to productivity and merits of workers.
From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama:
We achieved consensus in the process of revising the minimum wage
This week the process begins to revise the minimum wage in Panama, a figure that between 2007 and 2015 had a cumulative increase of over 60%, making it today the highest in Latin America. This is in contrast to the lamentable position in which the country is placed in measurements in education, an issue that requires priority attention at all levels.
The business sector in Nicaragua has suggested that in addition to inflation and economic growth the level of productivity of workers should be taken into account when defining salary adjustments.
According to employers the current legislation has not been changed in 10 years, therefore the method for making adjustments to wages does not reflect the changes that have been experienced in the production structures in companies.
The categories with the largest increases in the rate of recruitment between January and March were the Retail Trade, Wholesale Trade, and Other Services.
Despite the economic slowdown, companies from various sectors are achieving good results and hiring more staff. In the first three months of the year the wholesale, retail and other services categories showed increases of 2.8%, 3.5% and 2.9% respectively compared to the same period in 2013.
Performance bonuses and other variable compensation schemes weigh increasingly on the total compensation of senior managers.
In order to motivate and retain executives companies are tending more and more to compensate their executives with salary schemes where the variable proportion and that dependent on performance is increasing.
Paying with company stock, profit sharing from stocks or performance bonuses are some of the payment methods being used by companies for senior managers, as detailed in a report by consulting firm PriceWaterhouseCoopers.
While the unemployment rate remains the lowest in Latin America, an even greater level of preparedness of the workforce is needed to achieve dynamic and sustainable growth.
According to an article in Capital.com.pa the rate of employment growth is no longer parallel to economic growth, noting that "According to official figures, between March 2012 and March 2013 there was a decrease in the labour force of nearly 7,000 jobs. "
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