After not reaching a consensus within the National Minimum Wage Commission formed by workers and employers, the Panamanian Government set yesterday December 26th, the new minimum wage that will take effect from Monday, January 1st, 2018 until on December 31st, 2019 (for two years).

The increase represents between 6.5% for large enterprises and 4.5% for small enterprises.The Presidency of the Republic of Panama informed that this measure will impact 292 thousand workers of large companies. The Minimum Wage in Panama is set by activity, company size and region, being the lowest rate for agricultural activities.

Panama has the highest minimum wage in Latin America followed by Argentina, according to international organizations.

Any current salary higher than the approved by law will remain valid.