As of January 16, 2026, the new minimum wage in Panama came into effect, which introduces a new minimum wage. differentiated adjustments according to economic activity, directly impacting the payroll, labor costs and the legal obligations of companies.
This adjustment is not uniform: it varies depending on the sector, type of activity and working day, so it is key that each company assesses how it is specifically affected.
How do the increases vary?
Hourly increments
The hourly increases established in the decree range from:
- B/. 0.03 per hour in activities such as:
- Cement manufacturing
- Repair and maintenance of machinery
- Refrigeration equipment
- Ice production
- B/. 0.07 per hour in waste collection activities
- B/. 0.08 per hour in industrial fishing
Estimated monthly impact
In monthly terms, the salary increase represents an approximate impact between:
- B/. 6.24 and B/. 16.64 per month per worker,
depending on the economic activity and the number of hours worked.
This adjustment may appear moderate at the individual level, but represents a significant impact on the total payroll of companies with multiple employees..
Domestic work and small business
The decree also establishes specific measures for other sectors:
- Domestic workers:
Increase in B/. 10.00 per month in the minimum wage. - Small business:
The minimum wage remains unchanged, This is intended to alleviate the economic burden on small businesses.
Why is it important to review your particular case?
Although the decree establishes general amounts per sector, each company must analyze its individual situation, taking into account:
- Registered economic activity
- Region of the country
- Type of working day
- Company size
- Structure of the spreadsheet
An error in the application of the minimum wage can generate:
- Labor fines
- Retroactive payroll adjustments
- Legal risks in case of inspections
Therefore, it is essential to correctly verify your company's classification and the salaries applicable to each position.
Where to consult the complete decree?
The official text can be reviewed in the Official Gazette at the following link:
https://www.gacetaoficial.gob.pa/pdfTemp/30438/116801.pdf
Final recommendation
The new minimum wage is not only a human resources issue, but also an issue of legal compliance and financial planning.
We recommend that companies review their salary structure in advance, update contracts if necessary and ensure proper compliance with the new provisions before January 2026.
Having legal and accounting advice can make the difference between an orderly transition and possible labor contingencies.