Economy Politics Country 2025-11-20T10:07:25+00:00

Panama: Minimum Wage Negotiations Begin

Formal negotiations for Panama's new minimum wage have begun, focusing on the controversial proposal to unify Zone 2 with the rest of the country. The minister of labor urges a responsible agreement to protect small businesses amid concerns over the rising cost of living.


Panama: Minimum Wage Negotiations Begin

The impact is not only measured for those already employed, but also for those currently searching for work and unable to enter the market. The hot topic: unify Zone 2 with the rest of the country? One of the most controversial proposals was to equate Zone 2 with the rest of the country. Muñoz acknowledged that the idea is not simple: in the last review, salary regions were reduced from three to two, which meant a significant increase for many companies, especially small and medium-sized enterprises (SMEs). As she explained, this blow is still being felt, as many SMEs are only just beginning to recover after years of slow recovery. Therefore, before making a decision, the real impacts are being reviewed and each sector is being listened to. Four weeks to reach an agreement The regulation and official schedule have already been approved: the negotiating table will have four weeks to seek a consensus, with a deadline of December 10, and during this period, presentations, technical studies, and formal proposals from each sector will be received. The minister asked to remain calm, betting on a “responsible, fair, and possible” agreement that, as she herself said, will not break the fragile backbone of the economy: micro and small businesses. On Wednesday, the formal talks to define the new minimum wage began, and the Minister of Labor and Labor Development, Jackeline Muñoz de Cedeño, called for “prudence”. The discussion started on a more optimistic note than many had expected. She assured that the first session of the table was “very productive and positive,” with a dialogue atmosphere that generates confidence among all sectors. But beneath the good will are heavy issues that no one is ignoring. Basic basket and families in hardship The session addressed what hurts the Panamanian pocket the most: the basic food basket. The challenge, said the minister, is for essential products to reach prices that families can truly afford, and that any salary adjustment does not end up driving up costs for everyone. Technicians from the Ministry of Health (MINSA), Ministry of Economy and Finance (MEF), Ministry of Agricultural Development (MIDA), Consumer Protection Agency (ACODECO), the Comptroller General's Office, and the National Council of Telecommunications (CONAT) presented analyses that portray a well-known reality on the street: if something goes up here, everything goes up there.