Panama Work Permit
Overview
Panama is a popular destination for foreign workers, thanks to its strong economy, low taxes, and relaxed lifestyle. However, foreign workers must obtain a work permit before they can start working in Panama. The process for obtaining a work permit can be complex and time-consuming, so it is important to start the process early.
The process to establish residency and the process to obtain a work permit are different and independent. However, the residency process must be completed first, because it is one of the requirements to request a work permit.
The National Immigration Service responds to all residency applications in Panama. However, the Ministry of Work and Labor is responsible for processing all work permit applications.
Paths to obtain a permit to work in Panama
The Ministry of Labor and Workforce Development overseas work permits issued in Panama, ensuring that the process aligns with the country’s labor laws and immigration regulations. Recently, Panama has implemented new paths for obtaining work permits, offering diverse opportunities for foreign workers. These paths are divided into 7 categories:
The following work permits will be considered equivalent to local labor, under the same conditions as national workers:
- For a migrant worker with ten (10) or more years of residency in the country;
- For a migrant worker with a Panamanian spouse:
- In case of a valid marriage.
- By parental authority, in case of divorce.
- By parental authority, in case of widowhood.
- For a migrant worker with special permanent residency;
- For a migrant worker through family reunification, as a father or mother of a dependent Panamanian person;
- For a migrant worker under the Treaty of Friendship, Commerce, and Navigation between the Republic of Panama and the Italian Republic;
- For migrant workers dependent on diplomatic, consular, administrative personnel, and personnel of international organizations accredited in the Republic of Panama.
*Migrant workers who have obtained an Indefinite Work Permit, in accordance with Executive Decree No. 140 of August 2, 2012, granted under the category of nationals of Specific Countries maintaining friendly, professional, economic, and investment relations with the Republic of Panama, will be considered within this classification for all payroll calculation purposes.
Employers may hire migrant workers in accordance with the provisions set forth in Article 17 of the Labor Code, within the following categories of work permits:
- Migrant workers hired by an employer as regular staff, up to ten percent (10%) of the total workforce;
- Migrant workers hired by an employer as a specialist or technician, up to fifteen percent (15%) of the total workforce;
- Migrant workers hired by an employer as a trusted employee, up to fifteen percent (15%) of the total workforce;
- Migrant workers hired by a micro or small employer (MIPE);
- Migrant workers hired as a trusted employee of an employer whose transactions are perfected, consummated, or have their effects solely abroad
Employers may hire migrant workers in accordance with the provisions established by the following special laws:
- Migrant worker hired as an executive by a company in the Free Zone of Colon.
- Migrant worker hired by an authorized employer within the framework of the City of Knowledge Foundation (CDS).
- Migrant worker hired by an employer within the Panama Pacific Area, as follows:
- For workers, up to ten percent (10%) of the regular workforce.
- For workers, up to fifteen percent (15%) of technical or specialist workers, both in technical aspects and administrative management.
- For workers exceeding fifteen percent (15%) of technical or specialist workers, both in technical aspects and administrative management.
- For workers in companies with less than ten (10) employees.
- For workers in companies exclusively engaged in maintaining offices for directing transactions that are perfected, consummated, or have their effects abroad.
- Migrant worker hired by an employer within the Free Trade Zone regime or another special economic regime whose legislation refers to the Free Trade Zone regime.
- Migrant workers hired as trusted personnel, up to 15% of the total workforce.
- Migrant workers hired as regular staff, up to 10% of the total workforce.
- Migrant workers hired as specialized or technical personnel, up to 15% of the total workforce.
- Work permit for dependents of migrant workers who hold a visa or residency permit through special laws.
- Work permit for migrant workers holding a Temporary Personnel Visa from a Multinational Enterprise for the provision of services related to Manufacturing (EMMA).
- Migrant worker hired as a pilot or specialized personnel for a commercial aviation company.
The following migrant workers may apply for a work permit through special economic and investment policies:
- Migrant workers from specific countries that maintain friendly, professional, economic, and investment relations with the Republic of Panama, in case of investment.
- Migrant workers with permanent residency status as a qualified investor.
- Migrant workers under the special migratory category of economic solvency.
- Migrant workers under the current special categories of economic and investment policies.
The following categories of work permits are recognized for migrant workers under the protection of the Republic of Panama:
- Work permit for migrant workers:
- Who have been admitted for refugee processing.
- Who have been recognized as refugees.
- Refugees with permanent residency.
- Work permit for stateless migrant workers.
- Work permit for migrant workers who are victims of trafficking.
- Work permit for migrant workers with temporary status for humanitarian reasons.
*The migrant workers referred to in this category are included in the percentages established in Article 17 of the Labor Code as migrant workers considered local labor within companies and will have the same rights and obligations as stated in Title II, Chapter V, “Work Permits Considered Local Labor.”
Every migrant worker may apply for a work permit under special immigration conditions within the following categories:
- Migrant worker from specific countries that maintain friendly, professional, economic, and investment relations with the Republic of Panama, for employment purposes.
- Migrant worker with a residency permit obtained through General Migration Regularization Programs.
- Professional migrant worker.
- Migrant worker through family reunification for dependents of a resident.
- Student.
Temporary migrant workers are individuals hired to perform jobs that respond to the special, seasonal, specific, and/or extraordinary needs of a company for a specified period, not exceeding three months.
The duration of work permits for temporary workers may be up to three (3) months and can be extended for a maximum of three (3) periods of the same length. In all cases, authorization to work for a maximum period of up to one year can be obtained.
Work permits for temporary migrant workers may be granted for the following categories:
- Migrant workers hired by an employer as temporary technicians.
- Migrant workers hired by an employer as athletes.
- Migrant workers hired by an employer as artists.
- Migrant workers hired by an employer as nighttime entertainment workers.
There are some workers that do not require a work permit in Panama
While obtaining a work permit is generally a prerequisite for foreign nationals seeking employment in Panama, it’s important to note that certain categories of workers are exempt from this requirement:
- Religious Workers: This exemption applies to individuals serving as ministers, priests, pastors, rabbis, or religious workers within recognized religious institutions.
- Investors: Individuals who have made substantial investments in the country, as defined by the relevant laws and regulations, are exempted from the requirement of obtaining a work permit to manage their own business.
- Express Exemptions in Special Laws: Panama has implemented special laws that grant express exemptions from work permit requirements in specific circumstances. These exemptions are typically tailored to industries or sectors that contribute significantly to the country’s socio-economic fabric.
- Artists Hired by the Government: Panama exempts foreign artists hired directly by the government or non-profit organizations from the work permit requirement. This exemption encompasses performers, musicians, actors, and other artistic professionals engaged in government-sponsored events, cultural exchanges, or official programs.
Lastly, it is crucial to highlight that Decree 6 serves to provide clarity and affirmation regarding the treatment of all previously conducted procedures under preceding decrees and existing conditions. It states that such procedures will be processed, analyzed, and resolved in strict accordance with the regulatory framework under which they were initially presented. This resolute commitment to upholding the applicable norms ensures a fair and consistent approach to handling these matters, safeguarding the integrity of the process and promoting transparency and accountability.
General requirements
The requirements to obtain a work permit vary based on the foreigner’s residency program, but there are general requirements that apply to all cases, such as:
- Application and Power of Attorney, original and copy.
- Affiliation with the Ministry of Labor online.
- Certificate issued by the National Immigration Service stating the applicant’s status.
- Copy of the passport general data of the holder and the foreign registration (RUEX).
- Copy of the processing card, provisional or permanent residency card.
- Four passport-sized pictures.
Benefits of obtaining a work permit in Panama
- Legal status: A work permit in Panama gives you legal status to live and work in the country. This means that you can:
- Open a bank account
- Rent an apartment
- Buy property
- Get a driver’s license
- Peace of mind: Having a work permit in Panama gives you peace of mind knowing that you are legally allowed to live and work in the country. This can help you focus on your career and your life in Panama.
Risks of working in Panama without a work permit
- Deportation: If you are caught working in Panama without a work permit, you could be deported. This means that you would have to leave Panama and you could be banned from returning for a period of time.
- Fines to the employer: If the employer is caught employing someone in Panama without a work permit, they could be subjected to fines. The amount of the fine will depend on the circumstances surrounding the violation.
- Not being covered by workers’ compensation, rights, social security: If you are injured or become disabled while working, you will not be able to receive workers’ compensation benefits. This can be a significant financial hardship, as you may be unable to work and may have to pay for medical expenses out of pocket.
Costs and duration
The cost to obtain a work permit ranges from $100 to $600 in government fees, plus legal fees.
Once the Ministry of Work and Labor receives an application, it can take 1 to 3 months to decide whether to approve or deny the request.
If the application is approved, the applicant will receive an ID that authorizes him to work in Panama. The foreigner may need to show this ID to a hiring employer or to inspectors from the Ministry of Work and Labor when required.
Work permit extensions
Any request for an extension of a work permit for migrant workers must be submitted to the Ministry of Labor and Labor Development, at least sixty (60) calendar days before the expiration of the period established in the said permit.
Other dispositions
If a local company hires a foreigner who holds a valid work permit, the company must meet the rule of 10 Panamanian employees for each hired foreigner. This rule does not apply to Multinational Companies, which follow other rules.
The application of a foreigner under the Friendly Nations program also needs to include a labor contract, proof of social security registration, and payroll information from the hiring company.
In general, foreigners can invest in and supervise their own business. However, the opinion of the Ministry of Work and Labor is that said foreigner cannot manage or work without a work permit.
Occupations reserved for panamanians
Panamanian law forbids foreigners, even with a work permit, to labor in a number of occupations reserved for Panamanians nationals and naturalized – such as accounting, engineering, law, or psychology.
| Occupation | Regulation |
|---|---|
| Accounting | Law 57 of 1978 |
| Agricultural Botany | Law 22 of 1961 |
| Agricultural Chemistry | Law 22 of 1961 |
| Agricultural Economics/Agro-economics | Law 22 of 1961 |
| Agricultural Engineer | Executive Decree 257 of 1965 |
| Agricultural Sciences | Law 22 of 1961 |
| Agricultural Zoology | Law 22 of 1961 |
| Agronomy | Law 22 of 1961 |
| Agrostology | Law 22 of 1961 |
| Architectural Engineer | Executive Decree 257 of 1965 |
| Architecture | Law 15 of 1959 |
| Barbering and Cosmetology | Law 4 of 1956 |
| Chemical Engineer | Executive Decree 257 of 1965 |
| Chemistry | Law 45 of 2001 |
| Civil Engineer | Executive Decree 257 of 1965 |
| Construction Foreman | Law 53 of 1963 |
| Dendrology | Law 22 of 1961 |
| Dental Assistant | Law 21 of 1994 |
| Economics | Law 2 of 1981 |
| Electrical Engineer | Executive Decree 257 of 1965 |
| Geological Engineer | Executive Decree 257 of 1965 |
| Horticulture/Gardening | Law 22 of 1961 |
| Industrial Engineer | Executive Decree 257 of 1965 |
| Laboratory Technician | Law 74 of 1978 |
| Laboratory Technician | Decree 8 of 1967 |
| Law | Law 9 of 1984 |
| Mechanical Engineer | Executive Decree 257 of 1965 |
| Medical Assistant | Decree 32 of 1975 |
| Medical Radiology | Law 42 of 1980 |
| Medical Visitor | Law 24 of 1963 |
| Medicine | Executive Decree 196 of 1970 |
| Mining Engineer | Executive Decree 257 of 1965 |
| Nursing | Law 1 of 1954 |
| Nutrition | Decree 362 of 1962 |
| Odontology/Dentistry | Law 22 of 1956 |
| Pharmacy | Law 24 of 1963 |
| Physiotherapy | Law 47 of 1984 |
| Phytogenetics | Law 22 of 1961 |
| Phytopathology | Law 22 of 1961 |
| Psychology | Law 56 of 1975 |
| Security Agent | Law 56 of 2011 |
| Social Work | Law 17 of 1981 |
| Sociology | Law 1 of 1996 |
| Soil Science/Edaphology | Law 22 of 1961 |
| Speech Therapy and Similar | Law 34 of 1980 |
| Surveyor | Law 53 of 1963 |
| Veterinary Medicine | Law 3 of 1983 |
| Vocational Agricultural Education | Law 22 of 1961 |
| Zootechnics | Law 22 of 1961 |
Contact us
The process of applying for a work permit can be intricate and time-consuming. It’s crucial to partner with a knowledgeable immigration lawyer like Kraemer & Kraemer. We have the expertise to assist you throughout the application process.
Here’s how we can assist you:
- Determine the specific type of work permit required for your situation.
- Gather all the necessary documents needed for the application.
- Complete the application form accurately and thoroughly.
- Submit the application to the Panamanian government on your behalf.
- Follow up on the application progress and provide you with regular updates on its status.