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Morgan & Morgan 

January, 2018 - Panama, Panama



Morgan & Morgan holds a seminar on Panama´s minimum salary for 2018-19


Panama, January 4, 2018. The Executive Organ approved at the end of December, a 6.5% minimum salary adjustment for large companies, which became law of the Republic of Panama and applies from January 1st, 2018 to December 31st, 2019.

The Executive Organ took it upon itself to fix the minimum salary after a long discussion session of the National Minimum Salary Commission, established on August 26, and on conclusion of the permanent sessions on December 15, when commissioners came to a consensus on the division of certain activities but not on the adjustment percentage.

Review of the minimum salary takes place every two years as established in article 174 of the Labor Code. Generally, the adjustment is 6.5% for large companies and 4.5% for small enterprises. However, the breakdown of the minimum salary applicable to each activity, per region is contemplated in Executive Decree no. 75 of December 26, 2017 and published in the Official Gazette on December 27, 2017.

Morgan & Morgan presented last Thursday, January 4, the seminar Minimum Salary in Panama: new rates, to update clients and staff of small and large enterprises on the most significant changes and relevant details to be considered when establishing their minimum salaries. To develop the content, experts Maria Teresa Mendoza, partner of Morgan & Morgan and member of the Minimum Salary Commission, as well as Manuel Ferreira of the Chamber of Commerce, Industries and Agriculture of Panama and participating specialist of the Commission as well, covered from the theoretical and practical points the most relevant challenges and consequences for the business sector.

The seminar covered issues such as, Structure of Panama’s Minimum Salary: how to determine your company’s category and applicable minimum salary; how to compute weekly and monthly minimum salary; consequences of failing to pay the correct minimum salary; and how to assess the impact of the salary increase on your budget and labor benefits.

“The minimum salary is a complicated matter that requires training of both the business community as well as the employee,” noted Maria Teresa Mendoza.

About Morgan & Morgan
With over 80 lawyers and 20 practice areas, Morgan & Morgan is a Panamanian law firm with a complete offer of legal services, regularly assisting private companies, multinational corporations and individuals, as well as renown financial institutions and government agencies. In the labor field, Morgan & Morgan has the required expertise to offer domestic and international clients the highest support and experience in all aspects of labor law including, drafting labor agreements, collective bargaining agreements, work permits, labor litigation and restructuring processes among others.


WSG's members are independent firms and are not affiliated in the joint practice of professional services. Each member exercises its own individual judgments on all client matters.

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