Social Security in Panama


Employees and employers must pay the corresponding fee to the Social Security Fund, in accordance with the provisions of this Law, on wages, paid by the employer and received by the employee. For the purposes of this Law and Cabinet Decree 68 of 1970, without prejudice to the definition of salary contained in the Labor Code, salary or salary shall be understood as all remuneration without exception, in money or kind, received by employees of their employers as compensation for or on the occasion of their services, including:

  • Commissions.
  • Holidays.
  • Bonuses.
  • Diets, provided that they are recurring and that they exceed twenty-five percent (25%) of one month’s salary. In case of exceeding the previous percentage, such surpluses will be considered as wages.
  • Production premiums, provided they exceed fifty percent (50%) of a month of salary.

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