Panama Launches Youth Internship Program

Panama has passed a new internship law for young people. The program aims to facilitate employment for individuals aged 18 to 25 and minors with a high school diploma, without requiring prior work experience. The Minister of Labor and Labor Development, Jackeline Muñoz de Cedeño, stated that the program is expected to initially benefit over 25,000 young people and could impact up to 90,000 in the future with the support of the 'My First Job' program, which is already being implemented by the institution. Bill 342, which creates the Internship Program to encourage formal youth employment in the private sector, was approved in its third debate by the National Assembly. According to Muñoz, the plan seeks to encourage the training of this age group for labor market insertion and to counter the idea that they have no job opportunities due to a lack of experience. The project, presented by the Minister of Labor, creates this internship program aimed at young people in or with academic backgrounds from secondary, university, vocational, or technical education, aged 18 to 25, or minors with a high school diploma. 'Therefore, this is a public policy that seeks to reduce that, to give the young person that accompaniment towards the formal labor market,' the official specified. The document establishes that the maximum duration of the internship will be one year, and the company must hire an insurance policy that offers professional risk coverage for the intern, who will not be covered by the professional risk coverage offered by the Social Security Fund (CSS). Additionally, she explained that the internship is entirely voluntary and allows the young person to perfect their experience for one year to aspire to a formal contract. During this period, the intern will receive a monthly stipend of $450.00.