Panama Décimo Tercer Mes Calculator 2026
Last updated: January 2026
The décimo tercer mes (13th month) in Panama for 2026 is a mandatory bonus equal to one month of salary, unique because it is paid in three installments: April 15, August 15, and December 15. Each installment equals one-third of the monthly salary average for the corresponding 4-month period. The calculation periods are: January-April, May-August, and September-December. The décimo tercer mes is exempt from ISR and CSS deductions. Panama is the only country in the region that splits the 13th month into three payments. For workers with less than a full period, it is calculated proportionally. The daily salary is monthly salary ÷ 30. All amounts are in US dollars.
FAQ
How much is the décimo tercer mes in Panama?
The décimo tercer mes equals one month of salary, paid in 3 installments of approximately one-third each (April, August, December). Each installment is based on the average salary for its corresponding 4-month period.
When is the décimo tercer mes paid in Panama?
Payment dates are: April 15 (for January-April), August 15 (for May-August), and December 15 (for September-December). Panama is unique in splitting the 13th month into 3 installments — most countries pay it once in December.
Does the décimo tercer mes pay taxes in Panama?
No. The décimo tercer mes is completely exempt from ISR (income tax) and CSS (social security) in Panama. The worker receives 100% of each installment without deductions.
How is the proportional décimo tercer mes calculated?
For workers who did not complete a full 4-month period: (total salary earned in the period) ÷ 3. For example, if you worked 2 months of a 4-month period earning $1,000/month, the installment would be ($2,000) ÷ 3 = $666.67.
Why does Panama pay the 13th month in 3 installments?
Panama's Labor Code establishes 3 installments to provide workers with regular additional income throughout the year rather than one lump sum. This helps with financial planning and reduces the December spending spike. The system has been in place since 1971.