Hire and pay employees in Panama, hassle-free
With Deel, your business can easily hire employees in Panama. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries. The average onboarding time frame in the Panama is 3 days with Deel.
Onboard, pay and manage employees in Panama with Deel
Usually, to hire in Panama, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Now you can hire employees in Panama quickly, easily, and compliantly. Automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
Currency Panamanian Balboa (PAB) & United States Dollar (USD)
Capital Panama City
Official language Spanish
Payroll cycle Monthly
All the necessary benefits for Panama built right in
Deel allows you to provide localized benefits for employees in Panama within minutes. All in one manageable online dashboard in a single HR platform.
- Pension Insurance
- Public Health Insurance
- Social Security
- Unemployment Insurance
- Work From Home Allowance
- Workers Compensation Insurance
- Private Healthcare - Allianz (optional)
- Global Life Insurance - Allianz
Our quickstart guide to hiring in Panama
Navigate the tabs below to learn everything you need to know about hiring an employee in Panama
Minimum Wage Requirements
The minimum wage will depend on the sector of the company and can range from USD 275 to USD 970. For Deel, the minimum monthly wage is USD 611.52.
Individual Income Tax
The individual income tax ranges from 0% to 25%. Income tax is calculated according to progressive rates.
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to USD 11,000 | 0% |
| Up to USD 50,000 | 15% |
| Over USD 50,000 | 25% |
Payroll Cost
The employer cost is generally estimated at 38% of the employee salary (inclusive of work-from-home allowance).
- Social security - 12.25%
- Educational security - 1.50%
- Professional risks - 2.10%
- 13th Salary - 8.33%
- Vacation pay - 9.09%
- Seniority premium - 1.92%
- Compensation - 0.33%
- Work-from-home Allowance USD 50
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work up to three extra hours per day. For additional hours, employees are paid:
- 125% of the hourly rate, on a standard day
- 150% of the hourly rate, after 6 pm
- 175% of the hourly rate for the night shift employees
Standard working hours are eight hours per day, 40 hours per week. The standard workweek is from Monday to Friday. However, the standard workweek can be extended to 48 hours per week from Monday to Saturday.
Download the complete guide to hiring in Panama
Hiring in Panama, hassle-free
With Deel, your business can easily hire employees in Panama with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Panama and 150+ countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
38%
of employee salary