Countries › Panama › Guide › 7. Labor and employment › Minimum wage in Panama 2026 and 2027: hourly rates by region, activity and company size under Decreto Ejecutivo 13 de 2025

Minimum wage in Panama 2026 and 2027: hourly rates by region, activity and company size under Decreto Ejecutivo 13 de 2025

Last verified: 2026-10-29 · Status: Stable

Panama has no single minimum wage: Decreto Ejecutivo 13 of 31 December 2025, in force from 16 January 2026, sets hourly minimums by economic activity, occupation, company size and two regions for 2026 and 2027. Rates run from B/.1.64 an hour for small farms to B/.5.01 for international cabin crew; financial services pay at least B/.3.58 nationally, and domestic workers have a monthly minimum of B/.350 in Region 1 and B/.320 in Region 2. The Código de Trabajo requires a review at least every two years on the recommendation of the national minimum wage commission.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates as legal tender; the Superintendencia de Bancos states that the balboa's value is on a par with the US dollar (checked 29 October 2026). USD figures therefore equal the balboa figures.

Key facts

Lowest hourly minimum wage (small agricultural company, national)	1.64 PAB per hourDecreto Ejecutivo 13 de 2025 art. 2, as of 2026-10-29 · in force
Hourly minimum, large retail company, Region 1	3.02 PAB per hourDecreto Ejecutivo 13 de 2025 art. 2, as of 2026-10-29 · in force
Hourly minimum, financial and insurance activities (national)	3.58 PAB per hourDecreto Ejecutivo 13 de 2025 art. 2, as of 2026-10-29 · in force
Highest hourly minimum (international flight cabin crew)	5.01 PAB per hourDecreto Ejecutivo 13 de 2025 art. 2, as of 2026-10-29 · in force
Domestic worker monthly minimum, Region 1	350 PAB per monthDecreto Ejecutivo 13 de 2025 art. 2, as of 2026-10-29 · in force
Domestic worker monthly minimum, Region 2	320 PAB per monthDecreto Ejecutivo 13 de 2025 art. 2, as of 2026-10-29 · in force
Current minimum wage decree in force from	2026-01-16 dateDecreto Ejecutivo 13 de 2025 art. 5, as of 2026-10-29 · in force
Maximum interval between minimum wage reviews	2 yearsCódigo de Trabajo art. 174, as of 2026-10-29 · in force
Exchange rate used for USD conversions	1 PAB per USDBalboa at par with the US dollar (Superintendencia de Bancos), as of 2026-10-29 · in force

The rule

1. Hourly minimum wage rates are fixed by economic activity, occupation, company size and region for the whole country, as listed in art. 2 of the decree. Domestic workers keep a monthly minimum: B/.350.00 in Region 1 and B/.320.00 in Region 2.
Example: A large retailer in Panama City (Region 1) pays at least B/.3.02 an hour, about B/.628.16 a month for a 48 hour week. / US$3.02 an hour, about US$628.16 a month.Decreto Ejecutivo 13 de 31 de diciembre de 2025 (MITRADEL), Gaceta Oficial 30438 of 6 January 2026, arts. 1 and 2 and parágrafo, 2025-12-31 official text · verified 2026-10-29 · changed: Replaced Decreto Ejecutivo 1 of 10 January 2024 (repealed by art. 4) with new rates for 2026 and 2027, effective 16 January 2026.

2. Region 1 covers the districts of Panamá, Colón, San Miguelito, David, Santiago, Chitré, Aguadulce, Penonomé, Bocas del Toro, La Chorrera, Arraiján, Capira, Chame, Antón, Natá, Las Tablas, Bugaba, Boquete, Taboga, San Carlos, Chepo, Guararé, Los Santos, Pedasí, Dolega, San Félix, Barú, Boquerón, Portobelo, Donoso, Santa Isabel, Santa María, Parita, Pesé, Atalaya, Changuinola, Chiriquí Grande, Almirante, Tierras Altas and Omar Torrijos Herrera. Region 2 is the rest of the country.Decreto Ejecutivo 13 de 2025, art. 3, 2025-12-31 official text · verified 2026-10-29

3. The decree repealed Decreto Ejecutivo 1 of 10 January 2024 and took effect on 16 January 2026. The recitals record that the worker and employer representatives on the Comisión Nacional de Salario Mínimo agreed to recommend these rates for 2026 and 2027.Decreto Ejecutivo 13 de 2025, arts. 4 and 5 and recitals, 2025-12-31 official text · verified 2026-10-29

4. Every worker is entitled to a minimum wage, fixed by time unit for the region, activity or profession. It must be set periodically, at least every two years, on the recommendation of the Comisión Nacional de Salario Mínimo and by executive decree, taking into account regional cost of living differences, economic and employment policy, the nature and risk of the work and its conditions, time and place.Código de Trabajo (Decreto de Gabinete 252 de 1971), arts. 172 to 174 and 177, 1971-12-30 official text · verified 2026-10-29

5. Where no minimum is set for a profession or trade, the rate for the activity in which the service is provided applies. A new minimum automatically overrides lower wage clauses in individual contracts and collective agreements.Código de Trabajo (Decreto de Gabinete 252 de 1971), arts. 175 and 176, 1971-12-30 official text · verified 2026-10-29

6. The seven hour night shift and the seven and a half hour mixed shift are paid as eight daytime hours when applying the legal or agreed minimum wage.Código de Trabajo (Decreto de Gabinete 252 de 1971), art. 31, 1971-12-30 official text · verified 2026-10-29

7. The base salary may never be lower than the legal or agreed minimum, and piece rate pay must guarantee at least the applicable minimum for a working day of up to eight hours.Código de Trabajo art. 142 as replaced by Ley 44 de 1995 art. 19, art. 142, 1995-08-12 official text · verified 2026-10-29

Activity	Region 1	Region 2
Agriculture, livestock, forestry, fishing: small company	1.64	1.64
Agriculture: large company (11 or more workers)	2.10	2.10
Manufacturing: small company	2.32	1.95
Manufacturing: large company (16 or more workers)	3.13	2.58
Construction	3.51	3.30
Wholesale and commission trade	3.02	2.48
Retail: small company	2.37	1.99
Retail: large company (11 or more workers)	3.02	2.48
Free zones and special economic zones	3.77	2.52
Colón Free Zone	3.44	not set
Restaurants: large company (11 or more workers)	3.09	2.54
Information and communication (national)	3.16	3.16
Financial and insurance activities (national)	3.58	3.58
Professional, scientific and technical activities (national)	3.02	3.02
Law, accounting and audit firms with 15 or more employees (national)	3.18	3.18
Lawyers (national)	3.70	3.70
International flight cabin crew (national)	5.01	5.01
Domestic worker (monthly amount)	B/.350.00 a month	B/.320.00 a month

Selected hourly minimum wages (B/. per hour, equal to US$) from Decreto Ejecutivo 13 de 2025 art. 2, in force since 16 January 2026. The decree lists many more sub activities; check the full table for the exact line.

Worked example

Monthly figures on this page assume 48 hours a week, the daytime maximum of Código de Trabajo art. 31, and 52 weeks divided by 12 months, which gives 208 hours a month; the decree itself sets only hourly rates.
A large manufacturer in Colón (Region 1) must pay at least B/.3.13 an hour, B/.651.04 a month (US$651.04). The same company in a Region 2 district pays at least B/.2.58, B/.536.64 (US$536.64).
A bank or insurer anywhere in the country pays at least B/.3.58 an hour, B/.744.64 a month (US$744.64).
A small restaurant in Region 1 pays at least B/.2.32 an hour, B/.482.56 a month (US$482.56).

Step by step

Classify the business under the decree's activity lines and confirm whether it counts as a small or large company for that line (for example, 11 or more workers is large in retail, hotels and restaurants, 16 or more in manufacturing).
Identify the district of each workplace to place it in Region 1 or Region 2.
Check whether the occupation has its own national line (for example lawyers, journalists, transport mechanics), which prevails over the general activity rate.
Rebuild payroll from 16 January 2026 and keep the rates until a new decree is published, which the Code requires at least every two years.

Common traps

Rates are hourly. A monthly salary that looks above the minimum can fall below it once overtime, night shifts or long schedules are counted.
The company size thresholds differ by activity, so a firm with 12 staff is large in retail but small in manufacturing.
A new decree automatically raises lower wages in existing contracts and collective agreements; there is no grandfathering.
Domestic workers have a monthly, not hourly, minimum.

Sources

← Employment contracts in Panama: written contracts filed with MITRADEL, one year fixed terms, three month probation and the presumption of an indefinite relationshipWorking hours and overtime in Panama: 48 hour day week, 25 to 75 percent overtime surcharges, Sunday at 50 percent and national holidays at 150 percent →

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