Compliantly hire your distributed team members in
Panama
To hire new employees in
Panama
, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.
Borderless handles all of that for you, so you can focus on getting to work with your new team member in
Panama
while staying fully compliant with local laws and compliance.
Spanish
Panamanian Balboa (B/, PAB) and USD
Every 15th and 30th of the month
12 days
16%
$$$ (58 of 140, 2023)
30 days
18 days
14 weeks
In many countries like
Panama
, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.
The minimum wage in Panama is USD 275 - 970 per month.
Overtime payment is mandatory. Overtime is defined as any time worked beyond the normal working day, which can amount to a maximum of three hours per day. Compensation is as follows:
Standard working hours are eight hours per day, 40-48 hours per week. The standard work week is from Monday to Friday or Saturday.
Employees received a mandatory thirteenth-month salary.
For Borderless customers, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
According to Panamanian labor law, long-term employment contracts can only be terminated with a written notice citing a just cause, such as fraud, negligence, dishonesty, or any other offenses relating to the employee's job. If employees believe their termination was made without cause, they may seek justice in a labor court.
If the employee resigns, the typical notice period is 15 days. In case of termination, it’s usually 30 days.
The maximum length of probation is 3 months.
Every employee on an indefinite contract is entitled to seniority premiums upon the termination of a contract. These amount to one week’s pay for every year of service and are paid no matter the reason for termination.
Employees fired without just cause are also entitled to severance pay. This is calculated based on tenure, ranging from two weeks to seven months.
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:
Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.
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