The Executive Power approves a 6.5% adjustment on the minimum wage in Panama, as of January 2018.
The 6.5% wage increase for large companies and 4.5% for small companies was approved on Tuesday, December 26 by President Juan Carlos Varela, after a review of the minimum wage which concluded on December 15 and wherein the National Commission could not reach an agreement.
The announcement was given by the Ministry of Labor, Luis Ernesto Carles, after four months of negotiation dividing the increase in two regions depending on the work being performed and the place where it is performed. For example:
- Region 1, which includes the districts of Panama, Colon, San Miguelito, David, Santiago, Chitre, Aguadulce, Penonome, Bocas del Toro, La Chorrera, Arraijan, Capira, Taboga, San Carlos, Chepo, Guarare, Los Santos, Pedasi, Dolega, San Felix, Baru, Boquerón, Portobelo, Donoso, Santa Isabel, Santa María, Parita, Pese, Atalaya, Changuinola and Chiriqui Grande.
- Region 2 includes the remaining districts of the country.
Therein it is established that for the Colon Free Zone it is implemented the payment of 3.17 per hour, which is equivalent to 634.00 as minimum wage within the commercial area, increase which is in force as of January first, 2018.