What is the payroll cycle in Panama?

Commonly biweekly. Payroll is paid in PAB (Panamanian balboa).

Can I run payroll in Panama without a local entity?

Yes. Through an Employer of Record (EOR), Gracemark employs your talent under Panama labor law and runs local payroll, no entity required.

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Payroll in Panama

Payroll in Panama runs in PAB (Panamanian balboa). Commonly biweekly. Décimo tercer mes paid in three installments. Statutory employer contributions apply. Gracemark operates it end-to-end, humans, not tickets.

Get a Panama payroll quote Paying an existing team there? Tell us the headcount, email or phone is enough.

Currency

PAB, Panamanian balboa

Payroll cycle

Commonly biweekly

Working week

Generally up to 48 hours for daytime work

Minimum wage

Varies by activity, company size and region; map the role to the current decree

13th-month

Décimo tercer mes paid in three installments

Employer cost

Core employer charges are commonly modeled around 20%, with the final amount affected by occupational risk and other items

Probation

Up to three months for roles requiring ability or skill testing when agreed in writing

Notice period

Justification, notice and indemnity rules vary by contract and reason; calculate exposure before action

Two ways to run payroll in Panama

Own-entity payroll

For long-term presence in Panama. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Central America time.

EOR-run payroll

No entity in Panama? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 2–3 weeks (eor), no local incorporation.

Compliance essentials in Panama

The 13th month (décimo) is paid in three installments per year
The US dollar circulates alongside the balboa, no FX risk on pay
Generous one-month statutory annual leave
Regional HQ and logistics hub with strong English
CSS social security is the core employer contribution

Get a payroll quote for Panama

Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.

Get your Panama hiring plan

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.

100+ countries supported Compliance-first, vetted A real person replies within one business day

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Deeper guide

Hiring guide: Panama →

Employ without entity

EOR services →

All countries

Global payroll overview →