By not reaching a consensus in the National Minimum Wage Commission -formed by workers and employers- the Panamanian Government set the last day of the year 2021, through Executive Decree #74, the new minimum wage that will begin to govern from January 16, 2022, for two years, until December 31, 2023.

The Minimum Wage in Panama is set by activity, by company size and by region; however, during the next two years, the wage increase will apply only to sectors that during 2021 show some level of recovery compared to 2019.

The increase ranges from 1.5% to 13%, for agriculture, fishing, livestock, services, supplies, construction, financial and insurance activities, energy, social, health and domestic services.

For other activities such as commerce, hospitality, entertainment, or arts there will be no increase in the minimum wage.

Any prevailing salary higher than that fixed by this law shall remain valid.