Panama uses a complex minimum wage system instead of one fixed national salary. The government sets different wage levels depending on:
- Economic activity or industry
- Region of the country
- Occupation type
- Company size
The current minimum wage structure was updated through Executive Decree No. 13 of 2025 and became effective on January 16, 2026.
Panama is divided into two wage regions:
- Region 1: Includes Panama City, Colón, David, Boquete, Chitré, and other larger economic zones.
- Region 2: Includes more rural or lower-cost areas.
Minimum wages are usually calculated per hour. Depending on the sector, wages can range from approximately:
- B/.1.69 per hour in lower-paying sectors
- Up to B/.3.13 per hour in higher-paying industries such as manufacturing in Region 1
Domestic workers are handled differently and receive monthly minimum wages instead of hourly rates:
- Region 1: B/.350 monthly
- Region 2: B/.320 monthly
The minimum wage in Panama is reviewed approximately every two years by the government together with representatives from workers, employers, and the state.