#Panama 🇵🇦 #BDS_LaborAlert: Law Enacted Creating the Internship Program in Panama

Law No. 513 of March 20, 2026 has recently been enacted, establishing an Internship Program in Panama aimed at young individuals to promote their labor market integration and practical experience within the private sector.

The regulation establishes a specific legal framework allowing companies, organizations, and private entities to incorporate young interns under conditions defined by the Law.

One of the most relevant aspects of this Law is that internships do not constitute employment relationships, but rather a training experience aimed at developing professional skills and competencies. Accordingly, the relationship between the company and the intern is formalized through an internship agreement, rather than through an employment contract subject to the ordinary regime of the Panamanian Labor Code.

The program is primarily aimed at young individuals between 18 and 25 years of age, who may participate in order to gain work experience in companies or organizations that join the program.

The Law further establishes that internships will have a maximum one (1) year duration, and that participants will receive a monthly stipend of USD 450.00, intended to support their participation in the program. Additionally, companies must ensure risk coverage through an insurance policy, as interns are not part of the standard payroll.

Another important aspect is that companies may not use the internship program to replace existing staff positions. The Law is strictly educational and focused on facilitating a first work experience.

The implementation of this Law creates a new opportunity for companies to actively participate in the development of young talent, while ensuring compliance with regulatory requirements and limitations.

Please do not hesitate to contact us; our team remains available to assist you with the implementation of internship programs, review of agreements, and compliance analysis under Law No. 513.