Key Facts: Panama Wages
- Country
- Panama (PAN)
- Continent
- North America
- Currency
- Panamanian Balboa (PAB)
- Minimum Wage
- B/.1.69 /hr ($1.69 USD)
- Average Gross Monthly Salary
- B/.1,100 /month
- Average Gross Annual Salary
- B/.14,300 /year
- Median Individual Income
- B/.7,800 /year
- Standard Work Week
- 48 hours
- Data Source
- Ministerio de Trabajo y Desarrollo Laboral (MITRADEL)
- Last Updated
- 2026-02-24
Panama — Average Salary & Wages
Panamanian Balboa (PAB) Data verified Jan 2026 Sources
The average salary in Panama is
B/.14,300 a year
But half of all workers earn less than B/.7,800 .
The average is lifted by bonuses and high earners. Most workers earn less than that.
The minimum wage in Panama is B/.1.69/hr ($1.69 USD) as of 2026. The average gross monthly salary is B/.1,100 ($1,100 USD). The median monthly income is B/.650 ($650 USD).
Median individual income approximately PAB 650/mo. High inequality (Gini ~0.50) with significant disparities between urban Panama City, Colon, and indigenous comarcas. Large informal sector depresses median figures.
Average monthly wage for formal sector employees. Annual includes décimo tercer mes. Net estimated after social security (CSS) employee contribution of 9.75% and income tax (progressive 0-25%, most average earners pay ~5% effective). Panama City wages are significantly higher than the rest of the country.
• SECTOR RATES
Region 1 — Large enterprises (highest category)
B/.677 /mo
Since 2024-01-01
Applies to large companies in sectors such as banking, telecommunications, and mining in the Panama City metropolitan area.
Region 1 — Small/medium enterprises (mid category)
B/.500 /mo
Since 2024-01-01
Approximate mid-range minimum for Region 1 (Panama City area).
Region 2 — Agriculture/basic services (lowest category)
B/.326 /mo
Since 2024-01-01
Lowest applicable minimum wage, applying to small enterprises in rural areas and basic agriculture.
Minimum Wage Trend
Since 2016, the minimum wage has grown +30% in nominal terms.
• PPP ADJUSTED
In Panama, the minimum wage has the purchasing power of $3.67/hr in the United States, adjusted for local cost of living using the World Bank PPP conversion factor.
In Context
At minimum wage, a full-time worker in Panama earns B/.326/mo. That is 30% of the average gross salary.
- Monthly (full-time)
- B/.326 at min. wage
- Share of avg. salary
- 30% gross, before tax
- USD equivalent
- $326/mo monthly
- Nominal growth
- +30% since 2016
Wage Breakdown
- Hourly
- B/.1.69
- Monthly
- B/.326
- Annual
- B/.4,23813 monthly payments (décimo tercer mes — mandatory 13th month bonus)
Panama's minimum wage is set by Executive Decree every two years based on recommendations from a tripartite commission. Rates vary by two regions and dozens of economic activities/company sizes. The lowest rate is approximately PAB 326/mo (Region 2, small enterprises in agriculture/basic services). The highest rates reach PAB 677/mo or more (Region 1, large companies in banking/telecommunications). The Balboa (PAB) is pegged 1:1 to the US dollar and circulates alongside USD. The décimo tercer mes (13th month bonus) is mandatory.
Work Week
- Standard
- 48 hrs/wk
- Maximum
- 48 hrs/wk
- Overtime
- 1.25x pay
Labour Code sets maximum ordinary workday at 8 hours (daytime), 7 hours (mixed shift), and 6 hours (nighttime). Weekly maximum 48 hours for day work. Overtime: 25% surcharge for first 3 hours, 50% thereafter on regular days; 50% on holidays; and 75% on rest days (Sundays). Night work (6pm-6am) earns a 50% surcharge.
How Panama Compares
| Metric | Panama | North America Avg. | North America Highest |
|---|---|---|---|
| Min. wage (USD equiv.) | $1.69/hr | $5.82/hr | $17.13/hr (Bermuda) |
| Avg. salary (USD equiv.) | $1,100/mo | $1,569.85/mo | $6,228/mo (United States) |
Countries with Similar Minimum Wages
| Country | Min. Wage /hr (USD) |
|---|---|
| Saint Lucia | $1.69 |
| Guyana | $1.66 |
| Argentina | $1.64 |
| Samoa | $1.75 |
| Colombia | $1.77 |
| Panama | $1.69 |
Related Wage Comparisons
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Barbados Cost of Living
Wages tell half the story. See purchasing power, prices, and quality-of-life context for Panama on our sister site.
Cost of living in Panama on costofliving.is →Frequently Asked Questions
What is the minimum wage in Panama?
The minimum wage in Panama is B/.1.69/hr (approximately $1.69 USD), effective since 2024-01-01. Panama's minimum wage is set by Executive Decree every two years based on recommendations from a tripartite commission. Rates vary by two regions and dozens of economic activities/company sizes. The lowest rate is approximately PAB 326/mo (Region 2, small enterprises in agriculture/basic services). The highest rates reach PAB 677/mo or more (Region 1, large companies in banking/telecommunications). The Balboa (PAB) is pegged 1:1 to the US dollar and circulates alongside USD. The décimo tercer mes (13th month bonus) is mandatory.
What is the average salary in Panama?
The average gross monthly salary in Panama is B/.1,100 (approximately $1,100 USD). Average monthly wage for formal sector employees. Annual includes décimo tercer mes. Net estimated after social security (CSS) employee contribution of 9.75% and income tax (progressive 0-25%, most average earners pay ~5% effective). Panama City wages are significantly higher than the rest of the country. Source: Instituto Nacional de Estadística y Censo (INEC) — Contraloría General de la República (2024).
How many hours is the standard work week in Panama?
The standard work week in Panama is 48 hours, with a legal maximum of 48 hours. Overtime is paid at 1.25x the normal rate. Labour Code sets maximum ordinary workday at 8 hours (daytime), 7 hours (mixed shift), and 6 hours (nighttime). Weekly maximum 48 hours for day work. Overtime: 25% surcharge for first 3 hours, 50% thereafter on regular days; 50% on holidays; and 75% on rest days (Sundays). Night work (6pm-6am) earns a 50% surcharge.
How has the minimum wage in Panama changed over time?
The minimum wage in Panama has changed as follows: B/.250 in 2016, B/.275 in 2018, B/.300 in 2020, B/.312 in 2022, B/.326 in 2024. This represents 5 recorded adjustments.
What is the minimum wage in Panama in USD?
The minimum wage in Panama converts to approximately $1.69/hr in US dollars, based on current exchange rates. Actual purchasing power may differ due to local cost of living.
What is the average salary in Panama in USD?
The average gross monthly salary in Panama is approximately $1,100 per month in US dollars, based on current exchange rates. Actual purchasing power may differ due to local cost of living.
How does Panama's minimum wage compare to the North America average?
Panama's minimum wage ranks #28 out of 32 countries with statutory minimum wages in North America, placing it below the median for North America.
From Insights
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