Economy Politics Country 2025-12-12T21:57:05+00:00

Panama Approves New Minimum Wage Increases

The Panamanian government and labor unions have reached an agreement to raise the minimum wage for over 400,000 workers across various economic sectors. The new rates will take effect from January 16, 2026.


According to a statement from the Ministry of Labor and Labor Development (Mitradel), in region 1, a monthly increase of 10 dollars was approved for the domestic sector; security agents, 12 dollars in both regions; restaurants and hotels, and cargo transport, will receive a salary increase of 9.50 dollars. In turn, the representative of the National Council of Organized Workers (CONATO), Juan Samaniego, indicated that at the negotiation table, they supported their proposal with indicators, labor analyses, and studies. The Minister of Mitradel, Jackeline Muñoz, stated that at the negotiation table, both the employer and worker sectors did not raise unattainable expectations, but put the Panamanian people first. For regions 1 and 2, retail trade will have a monthly increase of 9.50 dollars. The new adjustments, which will benefit more than 400,000 workers, will be implemented in stages based on the 59 rates that cover 74 economic activities. Meanwhile, for region 2, waste collectors in region 1 will receive an additional 15 dollars per month. "Today, the working class, the Panamanian family, feels supported by the workers' sector through CONATO, which responsibly knew how to unify a criterion and call for a solidary position towards another organization that did not want to unify a single proposal," Samaniego stated. And in region 1, wholesale trade will also increase by 9.50 dollars per month. Meanwhile, Juan Antonio Ledezma of the National Council of Private Enterprise (CONEP), stated that agreements were reached for the benefit of the nation and the workers, and it was guaranteed that jobs would be maintained. The National Minimum Wage Commission agreed this Wednesday on new salary adjustments that will come into effect starting January 16, 2026.