Social Security

Employers and employees must contribute to Panama’s Social Security Fund (CSS), which covers health insurance, pensions, maternity benefits, and work injury compensation. Justworks handles enrollment, reporting, and contributions to CSS and other relevant agencies.

Time Off

Employees are entitled to 30 calendar days of paid vacation per year and 12 paid public holidays. Any unused vacation must be paid out upon termination. 

13th-Month Pay (Decimotercer Mes)

Employers in Panama are legally required to provide a 13th-month salary bonus, which applies to all employees, regardless of role or seniority. This amount must be paid in three equal installments during April, August, and December. This bonus is calculated based on total regular earnings and is equivalent to one month’s wages annually.

Private Health Insurance

While public healthcare is provided via CSS, many employers offer private health coverage for faster access to specialists and private clinics.

Meal Subsidies

While not required by law, some Panamanian employers offer meal stipends, transportation allowances, or prepaid cards to support day-to-day expenses. These can be provided tax-efficiently under certain thresholds.

Learning & Development

Employers in Panama often provide ongoing education benefits, such as paid training, professional development programs, or tuition reimbursement. This is especially common for employees in technical, finance, and legal fields.