Panama Minimum Wage 2026 — Full Table by Activity & Region
Last updated: January 2026
Panama has the most complex minimum wage system in Latin America: the amount varies by economic activity, region (Region 1: Panama City/Colon/San Miguelito vs Region 2: rest of the country), and company size (1-10 vs 11+ employees). Current minimum wages in 2026 range from B/.487 (domestic service, Region 2) to B/.787 (financial intermediation, large company, Region 1). All workers contribute 9.75% to CSS and 1.25% Education Insurance (11% total). Income tax does not apply to minimum wages as they fall below the B/.11,000/year exemption.
FAQ
What is the minimum wage in Panama in 2026?
There is no single minimum wage in Panama. Amounts range from B/.487 to B/.787 depending on economic activity, region, and company size. It's the most complex system in the region. Use the search table above to find the exact amount for your case.
Why does Panama have so many different minimum wages?
Panama differentiates minimum wages by three criteria: economic activity (agriculture, commerce, finance, etc.), region (Region 1 = main urban areas vs Region 2 = rest of the country), and company size (small 1-10 workers vs medium/large 11+). This aims to adapt wages to the cost of living and productivity of each sector and area.
How much is deducted from minimum wage in Panama?
A mandatory 11% is deducted: 9.75% for CSS (Social Security) and 1.25% Education Insurance. Income tax does not apply to minimum wages because they all fall below the B/.11,000 annual exemption. For example, a B/.668 minimum wage nets B/.594.48.
When is Panama's minimum wage updated?
The minimum wage is reviewed every two years by executive decree from MITRADEL (Ministry of Labor). The last update was for 2024-2025 and remains in effect in 2026 until a new review. The National Minimum Wage Commission (government, employer, and worker representatives) makes the proposal.
What are the highest and lowest minimum wages in Panama?
The highest is B/.787 (financial intermediation, large company, Region 1) and the lowest is B/.487 (domestic service, Region 2). The gap is 62%, reflecting the difference between economic sectors and regions.