MINIMUM WAGE
- DENFAB
- Jan 14
- 2 min read
Executive Decree No. 13 of December 31, 2025, issued by the Ministry of Labor and Workforce Development of Panama. This decree establishes the new hourly minimum wage rates for the 2026–2027 period, effective as of January 16, 2026. The rates vary according to economic activity, occupation, and company size (small or large).
That Article 66 of the Political Constitution of the Republic of Panama provides that the law shall establish the manner in which the worker’s minimum wage is to be periodically adjusted.
That, in furtherance of the constitutional principle set forth in the aforementioned Article 66 and as provided in Article 174 of the Labor Code, the minimum wage shall be set periodically at least every two years, based on the recommendation of the National Minimum Wage Commission and by decree of the Executive Branch.
That, as provided in Article 67 of the Constitution, equal work under identical conditions shall always be entitled to equal pay or salary, regardless of the persons performing it, without distinction as to sex, nationality, age, race, social status, or political or religious ideas.
That the Republic of Panama is a signatory to the Equal Remuneration Convention, 1951 (No. 100), which was approved by Law 48 of 1967; an instrument that establishes the principle of equal remuneration for men and women for work of equal value.
That Article 177 of the Labor Code establishes that, in determining the minimum wage, consideration shall be given to regional differences in the cost of living, the country’s economic and social policies, employment and income redistribution policies, and the activities, risks, time, and places in which the work is performed.
That the Government of the Republic of Panama, in compliance with the Political Constitution, international treaties and conventions on the subject, the Labor Code, decrees, and other related regulations, through Executive Decree No. 12 of November 13, 2025, appointed the members of the National Minimum Wage Commission, establishing each and every condition required to reach a consensus, taking into account the various sectors nationwide and providing all necessary and available information.
That the representatives of the labor sector and the representatives of the employer sector, present at the table of the National Minimum Wage Commission, after conducting a detailed analysis of the minimum wage proposals by region and economic activity, agreed to recommend to the Executive Branch the setting of the minimum wage rates that will govern for the 2026 and 2027 period.
That, in accordance with Article 174 of the Labor Code, it is the responsibility of the Executive Branch to periodically set, at least every two years, the minimum wage rates, based on the recommendation of the National Minimum Wage Commission.
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