#Panama 🇵🇦 #BDS_Informs: What the Law Says About Mandatory Rest Days, Payment Rules, and the Handling of Unjustified Absences During Carnival 2026
Carnival is approaching in Panama and, with it, immediate questions arise regarding mandatory rest...
The Ministry of Labor and the National Wage Committee have announced a 25% increase in the minimum wage applicable to the industrial free zone sector, to be implemented in two phases: a 13% increase effective as of June 1, 2025, and an additional 12% increase effective as of June 1, 2026.
This adjustment arises within the tripartite discussions among the government, employers, and workers, as part of the institutional process for the periodic revision of the national minimum wage.
Following the formalization of the agreement, the National Wage Committee must publish the relevant resolution in order to begin a 15-business-day period for the filing of potential legal remedies to challenge the resolution.
With this adjustment, the minimum wage for the sector would be updated as follows:
- Effective June 1, 2025: RD$18,871.00
- Effective June 1, 2026: RD$20,875.00
Please contact us if you have questions or need legal assistance regarding this or any other labor-related matters.
