Cost to hire in Panama
True employer cost in Panama is gross salary plus ~14.75% employer social contributions and 1 month of statutory extra pay a year. Use the calculator below.
That's a 23.1% uplift over gross salary.
Since April 2025: 13.25% social security + 1.5% education tax; occupational risk additional. 13th month. Source: PwC Worldwide Tax Summaries — Panama, checked 2026-10-21.
Get this estimate confirmed in writing for your role →How to hire
Use an Employer of Record to hire in 5–10 business days without setting up a local entity. Entity setup only pays off after ~15 employees.
How EOR works →Full country guide
Working hours, leave, notice, minimum wage, and misclassification risk for Panama.
Read the Panama guide →Other countries
Ready to hire in Panama?
We'll walk you through EOR setup, contracts, benefits, and onboarding, no entity required. Send the role and salary and we confirm the total cost in writing.
Send the role, a selected worker or an existing-team requirement in Panama. Get a written recommendation covering the model, cost categories, responsibilities and next steps. One hire is welcome; no meeting required.
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