PANAMA PEO & EOR
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DID YOU KNOW
- The territorial waters of Panama contain more than 1500 islands. Many of these islands are popular with tourists.
- Panama’s national animal is the Panamanian golden frog. The brightly colored yellow frog with black spots is thought to bring people good luck. Unfortunately, they are now suspected of being extinct in the wild.
- Panama is the only place in the world where you can watch the sun rise over the Pacific Ocean and set over the Atlantic Ocean on the same day, due to the way in which the land curves.
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The ‘Crossroads of the Americas’
Panama is one of only three countries that can declare themselves as a carbon-negative country. This is due to its small population verses vast forest coverage.
Change to Panama is home to the world’s only port providing access to two oceans, the man-made 82km waterway links the Pacific Ocean with the Atlantic Ocean. Ships sailing between the east and west coasts of the United States, which otherwise would be obliged to round Cape Horn in South America, shorten their voyage by about 8,000 nautical miles (15,000 km) by using the canal. Savings of up to 3,500 nautical miles (6,500 km) are also made on voyages between one coast of North America and ports on the other side of South America.
Surrounded by almost 3,000km of coastline, Pamana is home to some of the best snorkeling hotspots. With coral reefs, shipwrecks and rocky beds, you can get up close to a wealth of marine species.
Working in Panama - Employment Information
Working hours
In Panama the standard workday is 8 hours and up to 48 hours workweek. Nightshifts are limited to 7 working hours a day. One weekday rest is compulsory, this is normally a Sunday. Due to temperatures achieved in Panama a midday siesta is often practiced.
Minimum wage
As of January 2024, the minimum wage in Panama US$340.00 per month for domestic workers in Region 1 and US$315.00 for Region 2.
Leave entitlement
In Panama workers are entitled to 30 days annual leave plus 10 public holidays.
Women on maternity leave receive 14 weeks full pay, which is paid to them by the social security system not the employer. Fathers are entitled to 3 days of paternity leave for a newborn, provided a birth certificate can be shown as evidence.
Public holidays
- January 1 – New Year’s Day/Año Nuevo
- January 9 – Martyrs’ Day/Día de los mártires
- February/March – Carnival Tuesday/Martes de Carnaval
- March/April – Easter holidays: Good Friday, Holy Saturday and Easter Sunday/Pascua: Viernes y Sábado Santos y Domingo de Resurrección
- May 1 – Labor Day/Día del Trabajador
- November 3 – Colombia Independence Day/Independencia de Colombia
- November 4 – Flag Day/Día de la Bandera
- November 5 – Colón Province Separation Movement/Movimiento de separación en Colón
- November 10 – First Cry of Independence from Spain/Primer grito de independencia de España
- November 28 – Panama Independence Day/Independencia de Panamá (from Spain)
- December 8 – Mother’s Day/Día de la madre
- December 25 – Christmas Day/Navidad
Taxes
Panama’s fiscal year runs from 1st January till 31st December
Panama residence and non-residence only pay income tax based on income earned in Panama. Unlike many other countries, income earnt outside of Panama is not taxable in Panama. Income tax is currently as follows:
If you earn between $0 to $11,000 annually, 0% income tax.
If you earn between $11,001 and $50,000, taxed at 15% on all income above $11,000.
If you earn over $50,000, you’ll pay $5,850 in income tax, plus 25% on all income over $50,000.
Non-residents are taxed at a flat rate of 15% of their Panama-sourced income plus the 2.75% educational tax rate.
Social Security
The Caja de Seguro Social (CSS) is Panama’s social system benefits include:
- Health insurance
- Retirement pension
- Disability subsidy
- Maternity leave
- Death benefits
- Unemployment benefits
- Workers’ compensation
Employers are required to pay 12.25% of each employee’s gross wage to CSS.
Healthcare
Anyone who makes contributions to the Caja de Social is entitled to public health insurance. Public health insurance provided though CCS covers the following services.
- General and specialist care
- Medicines
- Laboratory and X-ray
- Hopitalisation
- Surgery
- Maternity care
Cultural information
Panama’s culture is a blend of African, American Indian, North American and Spanish influences. The vast array of cultures lends to a wealth of traditions in religion, foods, arts, music and sports.
The national dish Sancoho, which is a chicken soup. Varies from region to region however the base ingredients remain the same. Gallina (hen), Yam, Corriander, Water and Salt.
Panama’s national outfit is the Gala Pollera worn by women and the Montuno worn by men. Originating from Spain the Pollera consists of a blouse and long skirt with detailed multicolored embroidery and styled with jewelry and headwear. The Montuno is a long white sleeved closed neck shirt. Accompanied by long black trousers and a traditional straw hat with black lines.