🇵🇦
Payroll in Panama
Payroll in Panama runs in PAB on a commonly biweekly cycle, with statutory employer contributions and décimo tercer mes paid in three installments. Gracemark operates it end-to-end, humans, not tickets.
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.
Deeper guide
Hiring guide: Panama →
Employ without entity
EOR services →
All countries
Global payroll overview →