Updated March 12th 2026

Panama - Employer of Record (EOR)

Learn what you need to expand your business and hire compliantly in Panama while simplifying HR processes with Justworks EOR.

Quick Facts on Hiring in Panama

Everything you need to know about hiring in Panama at a glance.

. million

Population

Balboa (PAB) and United States Dollar (USD)

Currency

Panama City

Capital city

Spanish

Languages

$ billion (USD)

GDP

national holidays

Public Holidays

. million

Population

Balboa (PAB) and United States Dollar (USD)

Currency

Panama City

Capital city

Spanish

Languages

$ billion (USD)

GDP

national holidays

Public Holidays

Grow Your Team in Panama with Justworks EOR

Hire top talent in Panama without opening a local entity or navigating labor law alone. Justworks EOR helps you manage compliance, payroll, and benefits to simplify the complexity of international hiring.

Here’s how we support your global expansion:

  • Pay your team on time and in USD

  • Offer locally aligned benefits to stay competitive

  • Stay compliant with Panama’s Labor Code

  • Lean on expert support for onboarding, offboarding, and more

Here’s What You Should Know Before Hiring in Panama

Compensation & Benefits

In Panama, employers are required to pay a 13th-month bonus, and the minimum wage varies by region and role. Employees are entitled to paid vacation, public holidays, and mandatory social security contributions. Health and pension coverage is primarily administered through the Social Security Fund (CSS).

Learn About Benefits

Hiring in Panama with an EOR

Ready to start hiring talent in Panama with Justworks? Here’s how the process looks: 

  1. You’ve found the perfect new hire in Panama 

  2. Partner with Justworks EOR to bring them on

  3. Start the onboarding process for employees, including enrollment in local benefits and pension contributions

  4. Manage ongoing tasks such as payroll, benefits administration, compliance, and other HR operations specific to Panama

Hiring in Panama might seem overwhelming, but Justworks is here to offer tailored support to make it simple.

Learn About Hiring

Insights Into the Panama Hiring Market

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.
International ContractorsStreamlined Global Payments for Independent Talent
$39/month per contractor
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Key Features
  • Pay contractors in 60+ countries
  • Simplified contractor management
  • Self-service onboarding
  • Payment reporting
Employer of Record (EOR)Simplified International Hiring and Compliance Support
$599/month per employee
Key Features
  • Pay all employees from a single platform
  • Access local employee benefits
  • International compliance support
  • Time Tracking & PTO reporting
International ContractorsStreamlined Global Payments for Independent Talent
$39/month per contractor
Learn More
Key Features
  • Pay contractors in 60+ countries
  • Simplified contractor management
  • Self-service onboarding
  • Payment reporting
Employer of Record (EOR)Simplified International Hiring and Compliance Support
$599/month per employee
Key Features
  • Pay all employees from a single platform
  • Access local employee benefits
  • International compliance support
  • Time Tracking & PTO reporting

Ready to Hire Confidently in Panama?

Justworks helps you compliantly hire, pay, and support employees in Panama without the need for a local entity.

Questions? We've Got You Covered

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