Access top-tier candidates worldwide with our Global Talent Acquisition and recruitment services.
Onboard top talent quickly and compliantly with our Employer of Record service.
Adopt a human-centric approach to employee management, ensuring compliance.
Jump to:
USD($)
22.5%
Spanish
4.5 million
Monthly
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring employees in Panama offers several advantages, including a well-established legal framework that protects both employers and employees, making the hiring process transparent and regulated. Panama’s strategic location and status as a global business hub provide access to a skilled bilingual workforce, particularly in finance and logistics. Additionally, the country’s competitive labour costs, compared to other developed nations, can reduce operational expenses for businesses.
However, there are some challenges to consider. Panama has strict labour laws that heavily Favor employees, making it difficult and costly to terminate contracts without justified cause. The country also has a high social security contribution rate, which adds to the overall cost of employment. Moreover, bureaucratic processes can be slow, potentially delaying the hiring of foreign workers and complicating compliance with local regulations. Despite these challenges, Panama remains an attractive destination for businesses seeking to tap into a growing economy with a strategic geographical advantage.
Hiring remotely in Panama presents unique advantages due to the country’s robust digital infrastructure and strategic time zone, which aligns well with North American business hours. Panama has a well-educated, bilingual workforce, with many professionals fluent in both Spanish and English, making communication seamless for international companies. The country has also invested heavily in internet connectivity, particularly in urban areas, ensuring reliable remote work capabilities. Furthermore, Panama’s government is supportive of remote work arrangements, offering incentives such as simplified tax regulations for companies without a physical presence in the country. This, combined with the relatively low cost of living, allows employers to access high-quality talent at competitive salaries, making Panama an ideal location for building a remote team.
Start growing your remote workforce now
| Social Security Contributions | 12.25% |
| Thirteenth Month Bonus | 8.33% |
| Severance Fund | 1.92% |
Social security contributions
13th month bonus
Severance
Outlined in employment contracts or collective employers, length will vary with each individual employer.
Emerald Technology can onboard employees in Panama within 48 hours.
Pregnant employees are entitled to 14 weeks of maternity lave (6 weeks before birth and 8 afterwards). The employee should receive their full salary from the employer, who will be re-imbursed by the social security fund.
New fathers are entitled to three days fully paid leave after the birth of their child.
Employees are not limited to the amount of sick leave they can take, provided they can provide the relevant medical certificate. They are paid in full by the employer for the first 3 days, and the social security fund beyond that.
Panama does not have any laws in place to ensure parental leave.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Notice periods | 15 days if the employee resigns, 30 days if the employer terminates the contract |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Severance | In Panama, employees are entitled to severance pay unless they are dismissed for disciplinary reasons. The amount varies based on the reason for termination, the type of contract, and the length of employment. |
After completing 11 continuous months of work, employees earn 30 days of paid vacation. This leave must be taken in full and cannot be divided unless agreed upon between the employer and employee. Additionally, employees must be paid their regular salary during their annual leave period.
Varies region to region.
48 hours (6 days of 8 hours) maximum, Overtime is paid at 125% of the regular hourly rate for hours worked beyond the standard workday. If overtime is worked during night shifts (6 PM to 6 AM), Sundays, or public holidays, it is paid at 150% to 175% of the regular hourly rate, depending on the circumstances.
Monthly.
In Panama, employers are required to pay a 13th-month bonus, also known as the “Decimotercer Mes.” This bonus is equivalent to one month’s salary, paid in three equal instalments in April, August, and December.
Start a conversation on how we can assist you to grow your remote team.
