The Minister of Labor, Jackeline Muñoz, indicated that the analysis will be carried out with prudence and common sense, taking into account the economic reality the country is facing. "We, workers, have been demanding a decent minimum wage for over three decades, a wage that covers the complete basic basket of goods and services, not just food," the statement read. The National Minimum Wage Commission began its work on Saturday with the workers' demand for an increase aligned with the current reality, and with the business sector advocating for caution. In this sense, Aniano Pinzón, representing the workers, stated that the minimum wage should be 900 dollars in order to cover the entire family basic basket. Currently, the average minimum wage stands at 636.80 dollars per month, and modifications depend on factors such as region, company size, and economic activity. Pinzón complained that despite Panama's economy being one of the fastest-growing in Latin America, workers still do not enjoy competitive wages. He also advocated for a single national minimum wage. Additionally, he recalled that unemployment exceeds 10% and more than 700,000 people work in the informal sector. "Just as we understand that for many it is not enough to cover their family's needs, many companies, especially micro, small, and medium-sized ones, are at the limit of their financial sustainability, and we do not yet have an economic recovery in all sectors," he emphasized. For his part, Gabriel Diez, from the business sector, reminded everyone that it is no secret that the financial situation of households and companies is not the best. Muñoz said that previously around 120,000 dollars were spent on each review, and now the figure is $9,000. "This commission seeks a sincere dialogue between workers and employers to project a fair wage without generating false expectations," she indicated. Diez bets on respectful listening that allows for dialogue, proposing, and consensus to achieve progress. "A wage that allows us to live with dignity," he said. Executive Decree No. 12 of November 13, 2025, designates the members of the National Minimum Wage Commission in accordance with Article 21 of Cabinet Decree No. 249 of July 16, 1970, Organic Law of the Ministry of Labor and Labor Development, which will be tripartitely integrated by the worker sector through the National Council of Organized Workers (CONATO) and the National Confederation of Independent Union Unity (CONUSI), while the business sector will be represented by the National Council of Private Enterprise (CONEP), the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP), and the Panamanian Chamber of Construction (CAPAC). Meanwhile, the government sector will be composed of the Ministry of Commerce and Industry (MICI), Ministry of Economy and Finance (MEF), Ministry of Agricultural Development (MIDA), and the Ministry of Labor and Labor Development (Mitradel). Unlike in previous years, the entity will not conduct regional tours. The meetings will be held at the headquarters of Mitradel, where the commission will analyze variables such as market wages, cost of living, investment, employment, the country's economic situation, and other topics, which will be addressed during the 9 ordinary meetings, each lasting six hours. "We must evaluate the possibility of granting an increase based on the current situation."
Panama Begins Discussion on Minimum Wage Increase
Panama's National Minimum Wage Commission has begun its work after decades of worker demands for a pay raise. The parties are discussing a new wage size that should cover the full cost of living, while business calls for caution.
