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Payroll in Panama
Payroll in Panama runs in PAB on a bi-weekly cycle, with statutory employer contributions and décimo tercer mes (13th, 3 installments). Gracemark operates it end-to-end — humans, not tickets.
Currency
PAB — Panamanian balboa
Payroll cycle
Bi-weekly
Working week
48 hrs
Minimum wage
Sector/region-set
13th-month
Décimo tercer mes (13th, 3 installments)
Employer cost
~20.4% (CSS)
Probation
3 months
Notice period
Severance-based (indemnización)
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 →