Panama Introduces New Rules for Youth Internships

The President of the Chamber of Commerce and Industries of Panama, Juan Alberto Arias, reiterated the positive aspects of the legislative initiative on internships. The new law establishes a maximum internship period of one year and a cap on the number of interns per company. Arias highlighted that if an intern performs well, they will have the opportunity to become a regular employee of the company. Otherwise, they will gain a year of work experience, which will facilitate access to other jobs. The Minister of Labor, Jackeline Muñoz, stated that she expects that with the program's support, initially more than 25,000 young people can benefit, and in the future, up to 90,000 in conjunction with 'My First Job,' which the entity already carries out. "The proportion of interns in a company cannot exceed 3%, so companies will not be filled with interns, which is important," Arias said. In this regard, Arias mentioned that contrary to what some sectors think, companies will not take advantage of young people to fill their companies with interns. Young people between 18 and 25 years of age and minors with a high school diploma will have real opportunities to obtain employment through the creation of the Internship Program to encourage formal work for young people in the private sector, without the need for prior work experience. Arias also stated that the law provides for fines for those who exceed the maximum. 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 subject to the professional risk coverage offered by the Social Security Fund (CSS). During this period, the intern will receive, as a stipend for the internship, a sum of $450.00 per month.