The Government of Panama installed the National Minimum Wage Commission on November 15, a tripartite body that will analyze adjustments effective from January 2026. The commission is composed of representatives from the worker, employer, and government sectors and will hold nine regular sessions at the Ministry of Labor to review variables such as market wages, cost of living, investment, employment, and economic performance. During the installation, Minister of Labor Jackeline Muñoz stated that the analysis will be conducted with prudence, taking into account the economic reality faced by companies and workers. She emphasized that small and medium-sized enterprises are the 'backbone' of the country and are the most affected by passionate decisions. The employer sector, represented by the National Council of Entrepreneurial Private Enterprise (Conep), requested that any adjustment not affect formal employment or increase informality. Conep warned that the economic situation remains complex for many companies, especially micro, small, and medium-sized enterprises, which operate at the limit of their sustainability. The employer sector reaffirmed its willingness to actively listen to all represented actors. The current average minimum wage is $636.80 per month, with variations by region, company size, and economic activity.
