The active population in figures

Note: (e) Estimated data

Working conditions

Legal weekly duration

Panamanian labor law allows 4 work shifts per day.

1) Day work of 8 hours maximum per day and 48 hours per week which should take place between 6 AM and 6 PM. 2) Night work of 7 hours maximum per day and 42 hours per week which should take place between 6 PM and 6 AM. 3) Mixed work (night and day) of 7.30 hours maximum per day and 45 hours per week which should take place during the two cycles of work.  More than 3 nights per week the other periods are automatically considered as night. 4) Rotating cycle when the company needs staff during the different shifts.

Retirement age

57 years for women and 62 years for men.

Working contracts

The employment contracts are regulated by legal clauses and to a lesser degree by collective agreements and individual negotiations.
The terms of employment contracts, the conditions of hiring and dismissal are strict.

Cost of labor

Minimum wage

US $310

Average wage

The average monthly salary is around USD 500 in the public sector and around USD 420 in the private sector.  Salaries are paid every two weeks and the 13th month is spread out over 3 payments in the months of April, August and December.

Social contributions

Social security contributions paid by employers: 10.75%.
Social security contributions paid by employees: 7.25%.

Social partners

Social dialogue and involvement of social partners

Private sector workers have a right to form and to join unions of their choice.  Public sector employees do not have a right to form unions.  Government workers can form "associations" and negotiate collectively but only if they have a minimum of 50 members.

Unions

Panama Industrial Union (SIP) (Spanish only)
Unique National Union of the Building and related Industries (SUNTRACS) (Spanish only)

Unionization rate

14.2%.

Labor regulation bodies

Federation of Private Enterprises