Hire employees in

Panama

. Hassle-free.

With Deel, your business can easily hire employees in

Panama

. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

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Hire employees in

Panama


without setting up an entity

Usually, to hire in

Panama

, your business needs to set up an entity. That means a local office, an address registered as a subsidiary and an account with a local bank. This, plus navigating regional payroll, tax, and HR laws, can take months.

Panama

also treats contractors differently than full-time employees, so misclassifying a contractor could lead to penalties. Deel lets you can hire employees in

Panama

quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

We partner with local lawyers to ensure you’re compliant

With labor law experts in 150 countries, you can pick from a library of localized contracts to legally onboard your international team in minutes.

Give your team a great local experience

Deel allows you to legally hire and provide benefits for employees in

Panama

within minutes.
All in one manageable online dashboard.

Educational Scheme
Social Security
Worker Compensation Insurance

Quick Overview

Currency: United States Dollar (USD)

Capital: Panama City

Official language: Spanish

Payroll Cycle: Monthly

Statutory Holidays

Paid Time Off

In Panama, employees are entitled to 30 days of paid holiday after a year of employment.

Public Holidays

  • New Year’s day
  • Independence Day from Spain
  • Martyrs' Day
  • Carnival
  • Good Friday
  • Labor Day
  • Separation Day from Colombia
  • Colón Day
  • Uprising of Los Santos
  • Mother's Day
  • Christmas Day

General Taxation

Individual Income Tax

The individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges up to 25%

Employer Tax

13.75% of employee salary

Additional information

Employment Contract Details

Employment contracts must be in writing.

Probation Period

The maximum probation period is 3 months.

Minimum Wage Requirements

The minimum wage highly varies depending on the economic sector, it ranges from USD 2.00 to USD 2.75 an hour.

Maximum working hours and overtime

The Labor Code provides that the maximum working hours permitted during one day is eight hours. The maximum working hours permitted during a week is 48 hours.

Parental Leave

  • Maternity Leave: employees are entitled to 14 weeks of paid maternity leave, it can start 6 weeks before childbirth. However, if delivery date is delayed, then the prenatal portion of the leave is extended so the employee has 8 weeks of post-natal leave.
  • Paternity Leave: employees are entitled to 3 days of paid leave.

Sick Leave

Employees are entitled to 18 days' paid sick leave.

Termination requirements for employees in

Panama

Written dismissal must be provided stating cause and termination date. Employers are not required to pay severance unless termination is due to redundancy. If so, payment is determined based on the length of the labor relationship, it ranges from:

  • Up 6 months of employment - 2 weeks’ wages
  • Up to 20 years of employment - 15 months' wages

Notice Period

Notice is not required for employees terminated due to justifiable cause. Employees are entitled to 30 days’ notice is they are dismissed without reasonable cause.

We have a 4.7 out of 5 rating on Trustpilot

We're trusted by over 1200 businesses all over the world.
‍Read our reviews on Trustpilot.com.

This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go.

Kix Panganiban

Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!

Jeremie Habib

Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money

Nunzio Martinello
Nov 16, 2020
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Reviewed
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Deel is a game-changer for distributed teams

"

Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class.!

..."

Jeremie Habib
Dec 15, 2020
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Reviewed
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Terrific service

"

Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money

..."

Nunzio Martinello
Oct 28, 2020
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Reviewed
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Great service offering!!

"

The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all

..."

Michael
Nov 20, 2020
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Reviewed
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Deel is the best!!

"

Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized

..."

Kix Panganiban