Economy Politics Country 2025-11-21T04:06:28+00:00

University of Panama Pushes for Approval of Funds for Year-End Bonus

The University of Panama's Administrative Council has appealed to the Ministry of Finance, arguing that the rejection of budget transfers for employee bonuses is unlawful, as the payments are a guaranteed right funded by internal savings, not new expenditures.


In this regard, the Administrative Council sent a letter to the National Budget Directorate of the Ministry of Economy and Finance (MEF) to request a reconsideration of the rejection of budget transfers required to execute the payment of the annual bonus corresponding to university officials.

Since the beginning of 2025, the institution has managed various internal transfers with the purpose of strengthening the budget item destined for bonuses, supported by real savings generated monthly in the Personal Services section; however, of all the applications presented, only one was endorsed in April.

The payment of the bonus —indicates the note sent to the MEF— is based on article 103 of the Political Constitution, the Organic Law of the University of Panama that guarantees administrative and budgetary autonomy, the Collective Convention 2024-2028, and agreements of the Academic Council that authorized said disbursement for the 2025 period.

«The remaining ones, which remained unanswered for months, were rejected at the end of June, affecting the fulfillment of labor obligations recognized institutionally and legally,» commented the rector.

Rector Eduardo Flores added that this request is in accordance with the responsible management practices established in the current regulations.

Rector Flores explained that, despite the applications meeting the criteria of «fiscal responsibility, legality and budgetary availability», the procedures have been denied under the concept of expense containment.

The Administrative Council of the Casa de Méndez Pereira recalled that this benefit is contemplated in the Collective Labor Convention 2024-2028, published in the Official Gazette, and constitutes an acquired right for collaborators.

Faced with this scenario, the university administration requested that these arguments be re-evaluated, given that —as they indicate— it is a labor commitment backed by the current legal framework.

The repeated rejections, despite the technical and legal substantiation presented, generate concern in the academic community and compromise the fulfillment of the Collective Convention, a situation that could affect the institutional climate of trust and stability.

The institution detailed that the funds come from savings generated by unpaid leaves, retirements, resignations, and deaths, so that «they do not imply increases in expenditure, do not affect the global ceiling and do not contravene the containment measures».

The University of Panama continues to push for the approval of the resources to pay the year-end bonus.