ILO is a specialized agency of the United Nations
ILO-en-strap
Go to the home page
Contact us
> TRAVAIL home > TRAVAIL legal databases


Page 1 of 1 (1 countries)   

Panama - Minimum Wages - 2011


LAST UPDATE

15 December 2011

SOURCES


Name of Act

Ministerial Decree N° 252 promulgating the Labour Code, of 30 December 1971 (Gaceta Oficial N° 17040 Extraordinary, 18 February 1972), as amended up to Law n°68 of 26 October 2010.
click on this symbol to show or hide remarks

Name of Act

Executive Decree n° 263 on Minimum Wages, (Ministerio de Trabajo y Desarrollo Laboral Decreto Ejecutivo n° 263) of 21 December 2009, as amended by the Executive Decree No.1 of 14 January 2010.

Name of Act

Executive Decree No. 9 of 23 February 2006 regulating the wages in-kind and other personal remunerations, as amended up to Resolution No. 40,776-2008 JD.

LEGAL DEFINITIONS


Employee/worker

"Workers" shall mean any natural person who by a contract, either written or oral, individual or collective, express or implied, renders services or performs work under the subordination or dependence of another person.
Labour Code Art.82

Employer

"Employer" shall mean any legal or natural person that profits from the service rendered or work performed by the worker.
Labour Code Art.87

Wage

"Wage" shall mean the remuneration which shall be paid by the employer to the worker by virtue of the labour relationship, which includes not only what in cash and in kind payments, but also the ex gratia payments, benefits, bonuses, premiums, commissions, share in the profits and any other income or benefits that the worker receives on account of the work carried out.
Labour Code Art.140

Minimum wage

"Minimum wage" shall mean the minimum remuneration in cash that shall be paid by the employer to the worker, determined per unit of time for the region, activity or occupation.
Labour Code Art.173
Executive Decree n° 263 on Minimum Wages Art.9

MINIMUM WAGE FIXING


Procedure


Government decides after tripartite or bipartite body discussions/recommendations

Minimum wages are fixed following the recommendation of the National Minimum Wage Commission (a tripartite commission of government, workers, and employers) by decree of the Executive.

There is no general minimum wage rate. Minimum wage rates are set per hour and vary according to pre-determined regions, sectors and size of the company.
Labour Code Art.174
Executive Decree n° 263 on Minimum Wages Art.2

Minimum wage set through decentralized collective bargaining

Wage rates may be fixed by collective agreement, which cannot be lower than the minimum wage rate fixed by the government.
Labour Code Art.176, 398
Executive Decree n° 263 on Minimum Wages Art.8

Criteria


Needs of workers and their families

Yes. In order to adjust the minimum wage rates, the Minimum Wage National Commission shall take into account the needs of the worker and his family in the material, moral, and cultural order.
Labour Code Art.172

Cost of living

Yes. In order to adjust the minimum wage rates, the Minimum Wage National Commission shall take into account the regional differences in the cost of living.
Labour Code Art.177(1)

Level of wages and incomes in the country

Yes. In order to adjust the minimum wage rates, the Minimum Wage National Commission shall take into account the level of wages in the country.
Executive Decree n° 263 on Minimum Wages Art.8

Economic development

Yes. In order to adjust the minimum wage rates, the Minimum Wage National Commission shall take into account the general economic and social policy of the country with respect to the various aspects of full and sustained national development.
Labour Code Art.177 (2)

Productivity

Yes. In order to adjust the minimum wage rates, the Minimum Wage National Commission shall take into account the productivity of the country.
Executive Decree n° 263 on Minimum Wages Art.8

Level of employment

Yes- employment policy and income redistribution
Labour Code §177(3)

Other provisions

In order to adjust the minimum wage rates, the Minimum Wage National Commission in addition shall take into account other factors, such as the nature of the work and its risks, the conditions, time and place in which the work is performed, and when applicable, the differences between jobs and trades.
Labour Code Art.177(4,5)

Coverage


Scope

The legislation does not provide a general minimum wage rate, but different rates applicable to the private sector, according to the following factors; regions, sectors, occupations and size of the company.
Labour Code Art.178

Coverage rate

If a company carries out several activities and a worker provides services in more than one sector, he shall enjoy the most favourable minimum wage rate.
Labour Code Art.178

Excluded categories

No exclusions as for categories of workers have been identified.

Specific minimum wage rates


» Specific minimum wage by occupation

Minimum wage rates are set for different occupations, such as: domestic workers, workers in casinos, journalists, among others.
Executive Decree n° 263 on Minimum Wages Art.2

» Specific minimum wage by sector

Minimum wage rates are set for the following sectors or economic activities: agriculture, forestry, hunting, fishing, mining, manufacture sector, electricity, gas, water, construction, large-scale and small-scale commerce, hotels, restaurants, transport, warehousing, telecommunications, financial intermediation, real estate, entrepreneurial activities, social and personal services.
Executive Decree n° 263 on Minimum Wages Art.2
click on this symbol to show or hide remarks

» Specific minimum wage by region

Minimum wage rates are also set according to whether the work is carried out in Region 1 or Region 2.
Region 1: Districts of Panamá, Colón, San Miguelito, David, Santiago, Chitré, Aguadulce, Penonomé, Bocas del Toro, La Chorrera y Arraiján.
Region 2: The rest of the districts of the country.
Executive Decree n° 263 on Minimum Wages Art.4

» Minimum wage levels for specific categories of workers


» Domestic Workers

There are two minimum wage rates for domestic workers according to the region in the country;
-In the districts of Panamá, Colón y San Miguelito, David, Santiago, Chitré, Aguadulce, Penonomé, Bocas del Toro, La Chorrera y Arraiján, domestic workers shall be entitled to enjoy 160$Balboas per month.
-In the rest of the districts of the country, domestic workers shall be entitled to enjoy 145$Balboas per month.
Executive Decree n° 263 on Minimum Wages Art.6

Level


Minimum wage level(s) in national currency

The legislation provides minimum wage rates for the different districts organised in two regions. As a reference, in the capital region, the minimum wage rate for workers employed in small enterprises in the manufacturing sector, is 1.53 $balboas per hour.
Executive Decree n° 263 on Minimum Wages Art.2

Last minimum wage update

21 December 2009
Executive Decree n° 263 on Minimum Wages

In-kind allowances

Wages in-kind are any ordinary or extraordinary remuneration paid in a different manner than legal currency, as a mean of compensation for the services rendered by a worker to an employer, for his personal or family consumption.
As provided in the legislation, minimum wages shall be the minimum remuneration in cash that workers shall be entitled. Therefore no reductions due to the payment of in-kind allowances are permitted under tjhe minimum wage rates.
Executive Decree No. 9 Art.1
Executive Decree n° 263 on Minimum Wages Art.9

Rate of payment


» Hourly

Yes. The legislation provides the minimum wage rates per hour.
Executive Decree n° 263 on Minimum Wages Art.2

» Monthly

Yes - Minimum wage rates for domestic workers are fixed on a monthly basis.
Executive Decree n° 263 on Minimum Wages Art.6

Scheduled frequency of adjustment

Minimum wages shall be adjusted periodically, at least every two years.
Labour Code Art.174

Enforcement mechanisms


Labour inspection

The Labour authorities ensure compliance with labour legislation. For this purpose they may carry out inspections in which employers shall cooperate and provide the inspector with all the records and informations that they may require.
Labour Code Art.180, 128(5)(11)

Fines in national currency for non-respect of legislation

Failure to comply with minimum wage legislation shall result in fines between one hundred and five hundred balboas.
Labour Code Art.180

Other penalties

In case of repeat offences, fines shall be doubled.
Labour Code Art.180

Results generated on: 23rd October 2014 at 18:28:38.
Page 1 of 1 (1 countries)   

 
^ top
Summaries and full texts in the TRAVAIL Legal Database are provided for information purposes only and are not intended to replace consultation of the authentic legal texts. We update the database regularly but are unable to guarantee that the laws it contains are always complete, accurate and the most recent version. Please contact us if you have updated information.