Updated February 27th 2026

All About Remote Work in Panama

Learn about hiring employees in Panama for remote work and how Justworks EOR can make managing employees abroad easier.

Building a Remote Team in Panama

With a central location, dollar-based economy, and growing tech infrastructure, Panama is an excellent destination for U.S. businesses that want to hire top talent. Justworks helps you hire in Panama without the complexity of managing labor compliance alone.

Here’s what we handle for you:

Benefits of Hiring Remote Workers in Panama

Remote work is becoming increasingly more common, thanks to Panama’s connected workforce and growing regulatory support for digital employment.

Skilled and Educated Workforce

Panama has a bilingual, service-oriented labor force with growing experience in technology, finance, customer service, and logistics. Additionally, many professionals are familiar with U.S.-style business operations. Panama’s time zone aligns well with North America, making collaboration across countries easier.

Panama has teleworking legislation under the Law 126 of February 18, 2020. Under this law, employers should define the work location, hours, and equipment terms to avoid disputes in remote work contracts. Remote work can also be structured as a flexible alternative under standard labor contracts.

Infrastructure and Connectivity

With widespread access to high-speed internet and a growing innovation economy, Panama supports remote collaboration. Its location, infrastructure, and reliable connectivity make it a natural fit for companies building international teams.

Employee Rights for Remote Workers

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.

Ready to Hire Confidently in Panama?

Justworks makes building your global team seamless by helping you hire and onboard talent in Panama and beyond. Save yourself the time and hassle of international hiring today.

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