The president of APEDE, Giulia De Sanctis, called for a modern review of the minimum wage, highlighting education, productivity, and the high cost of living in Panama.
Amidst the recurring two-year debate, De Sanctis stated: "It's not enough to talk about the decree; we must look at the real lives of people."
De Sanctis explained that the country remains trapped in a dynamic that harms both workers and small businesses. "Almost 50% of Panamanians are in the informal sector. There's no mystery: education is social mobility," she insisted. She added a weighty warning: "If we neglect public education, we are condemning young people to informality and unemployment tomorrow."
A broader and less mechanical perspective For De Sanctis, Panama cannot continue to see the minimum wage as the only tool for improving well-being. "Panama needs more workers to earn above the minimum not by decree, but because their talent and productivity are recognized," she affirmed. She reiterated that the tripartite dialogue is important but insufficient without modern public policies: "Decisions must be responsible, technical, and sustainable, especially thinking about SMEs, which already face increases in labor costs and economic uncertainty."
In closing, she sent a direct message: "As a country, we must ask ourselves what model of development we want. We cannot ask them to pay more if we do not give them the tools to sustain those wages," she emphasized.
Education: where it all begins The president was blunt in explaining why education remains the key to a better life. "88% of those earning over 600 dollars have a university or technical education. At APEDE, we will continue to push for a conversation with empathy, responsibility, and a vision for the future." The path to better incomes lies in making it easier for people to formalize, she stated.
Public services and productivity: what truly eases the pressure on the wallet De Sanctis argues that the country must address what truly drives up the daily cost of living for Panamanians: "If we had quality public services, families would not have to allocate part of their salary to health, water, food, or transportation," she said.
According to the president of APEDE, betting on a more productive country is essential. "Wages only grow when productivity grows. This means they have no contract, do not contribute, and their pension will be more precarious," she warned. The business leader also questioned the idea that the minimum wage alone can solve the high cost of living. "The minimum wage is not the solution to the cost of living. That is the economic reality, not an opinion," she expressed, citing recommendations from the IDB, World Bank, ECLAC, and the OECD. She also noted that companies, especially the smallest ones, need support: "Over 90% of the country's companies are SMEs."
