Executive Decree No. 13 (December 31, 2025), published in Official Gazette No. 30438, establishes new minimum wage rates per hour based on economic activity, occupation, company size, and region. This rates enter into force on January 16, 2026, and will remain in effect for two years.
For purposes of applying the minimum wage rates, the national territory is divided into the following regions:
REGION 1: Districts: Panamá, Colón, San Miguelito, David, Santiago, Chitré, Aguadulce, Penonomé, Bocas del Toro, La Chorrera, Arraiján, Capira, Chame, Antón, Natá, Las Tablas, Bugaba, Boquete, Taboga, San Carlos, Chepo, Guararé, Los Santos, Pedasí, Dolega, San Félix, Barú, Boquerón, Portobelo, Donoso, Santa Isabel, Santa María, Parita, Pesé, Atalaya, Changuinola, Chiriquí Grande, Almirante, Tierras Altas, Omar Torrijos Herrera.
REGION 2: All remaining districts.
In Region 1, a monthly increase of $10.00 was approved for the domestic sector; security guards will receive an increase of B/.12.00 in both regions; restaurants and hotels, as well as cargo transportation, will receive a $9.50 increase. In Region 2, waste collectors in Region 1 will receive an additional B/.15.00 per month. For both Regions 1 and 2, retail trade will receive a $9.50 monthly increase, and in Region 1, wholesale trade will also increase by $9.50 per month. Please note that the minimum wage is set on an hourly basis, and therefore the monthly amount will depend on the employee’s weekly work schedule.
With the publication of the Decree, employers and workers are provided certainty regarding the adjustments to be implemented.
Access the full decree here.
In order to analyze how the implementation of the new minimum wage rates will be carried out and the practical application of this reform, our firm will hold a free webinar on Monday, January 12, from 9:30 a.m. to 10:30 a.m. (Panama time) and 8:30 a.m. to 9:30 a.m. (Central America time).
