Key Facts: Panama vs Eritrea Wages
- Panama Minimum Wage
- B/.1.69/hr ($1.69 USD)
- Eritrea Minimum Wage
- Nfk600/mo ($40 USD)
- Panama Avg. Gross Monthly Salary
- B/.1,100 /mo ($1,100 USD)
- Eritrea Avg. Gross Monthly Salary
- Nfk6,000 /mo ($400 USD)
- Data Sources
- Ministerio de Trabajo y Desarrollo Laboral (MITRADEL) (2026-02-24), ILO ILOSTAT / World Bank / OHCHR Eritrea reports (2026-02-25)
Panama 
Eritrea
Updated 2026-02-25
The minimum wage in Panama is roughly 24 times lower than in Eritrea in USD terms, reflecting the gap between a upper-middle-income and a low-income economy. Average gross salaries diverge further: $1,100/mo in Panama versus $400/mo in Eritrea, a 2.8:1 ratio. Eritrea has the tighter labor market, with unemployment at 6.0% compared to 8.4%.
Panama's unemployment rate is 8.4% compared to Eritrea's 6.0%.
Detailed Comparison
| Metric | Panama | Eritrea |
|---|---|---|
| Minimum wage /hr | B/.1.69 $1.69 | — |
| Minimum wage /mo | B/.326 $326 | Nfk600 $40 |
| Minimum wage /yr | B/.4,238 $4,238 | — |
| Avg. gross salary /mo | B/.1,100 /mo $1,100 | Nfk6,000 /mo $400 |
| Avg. net salary /mo | B/.990 /mo $990 | Nfk5,400 /mo $360 |
| Median individual income /yr | B/.7,800 /yr $7,800 | N/A/yr |
Percentage differences are based on USD equivalent values. Positive means Panama is higher.
Work Week
- Panama
-
48 hrs/wk standard
Max 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.
- Eritrea
-
44 hrs/wk standard
Labour Law sets 44 hours/week for civilian workers (8 hours/day, 5.5 days). However, the national service program operates under military regulations outside normal labour law. No reliable enforcement or monitoring data is available.
What This Means for Workers
A minimum wage worker in Panama earns 2267% less per hour in USD terms than one in Eritrea. Standard work weeks differ: Panama mandates 48 hours while Eritrea mandates 44 hours. A minimum wage worker's weekly earnings in Panama are $81 vs $1,760 in Eritrea.
See this comparison from Eritrea's perspective: Eritrea vs Panama
Compare Panama with...
Panama vs United States $ 7.25 /hr 
Panama vs China ¥ 25 /hr 
Panama vs Germany € 13.9 /hr 
Panama vs United Kingdom £ 12.71 /hr 
Panama vs India ₹ 4,576 /mo 
Panama vs Japan ¥ 1,121 /hr 
Panama vs France € 12.02 /hr 
Panama vs South Korea ₩ 10,320 /hr 
Panama vs Canada C$ 18.1 /hr 
Panama vs Australia A$ 24.95 /hr 
Panama vs Brazil R$ 7.37 /hr 
Panama vs Russia ₽ 156.31 /hr 
Panama vs Mexico MX$ 9,583.52 /mo 
Panama vs Indonesia Rp 33,058 /hr 
Panama vs Netherlands € 14.71 /hr 
Panama vs Saudi Arabia ﷼ 23.08 /hr 
Panama vs Turkey ₺ 164.94 /hr 
Panama vs Taiwan NT$ 190 /hr 
Panama vs Switzerland 
Panama vs Poland zł 31.4 /hr 
Panama vs Thailand ฿ 10,400 /mo 
Panama vs Sweden 
Panama vs Argentina ARS 1,762 /hr 
Panama vs Singapore Frequently Asked Questions
Is the minimum wage higher in Panama or Eritrea?
In Panama, the minimum wage is B/.1.69/hr ($1.69 USD). In Eritrea, it is Nfk600/mo ($40 USD). Eritrea has the higher rate by 2267% in USD terms. That nominal gap does not account for local prices; see the purchasing power comparison below for a cost-of-living-adjusted view. Workers in Panama may retain a larger share of their earnings if prices there are lower.
How much more does the average worker earn in Panama compared to Eritrea?
The average gross salary in Panama is B/.1,100/mo ($1,100 USD), compared to Nfk6,000/mo ($400 USD) in Eritrea. In USD terms, workers in Panama earn approximately 175% more. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Panama and Eritrea is shaped by differences in industry composition, labor productivity, and the overall cost of living in each country. Workers in Panama earn more in nominal terms, though how far that income stretches depends on local prices in Eritrea.
How do work hours compare between Panama and Eritrea?
Panama has a longer standard work week at 48 hours, compared to 44 hours in Eritrea. Workers in Panama work 48 hours per week by law. Longer mandatory hours can offset a nominally higher wage; a worker in Eritrea working fewer hours may have comparable or better effective hourly earnings depending on the wage levels of each country. Total annual compensation depends on both the wage rate and the number of hours required.