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Liquidation calculator
Estimate your Panama liquidation: seniority premium (1 week per year) and, for unjustified dismissal, the Art. 225 indemnity.
Estimate
Weekly salary—
Seniority premium (1 wk/yr)—
Indemnity (Art. 225, est.)—
Estimated total—
Excludes pending pro-rated vacation and décimo, which are also part of your liquidation.
Important: the seniority premium (Art. 224) applies to all indefinite contracts. The unjustified-dismissal indemnity (Art. 225) follows a scale that varies by tenure and start date; this shows an estimate (3.4 weeks/year for the first 10 years, +1 week/year after). For the official figure use the MITRADEL calculator and confirm with your accountant or lawyer.
Frequently asked questions
If I resign, am I still entitled to a liquidation in Panama?
Yes. Even if you resign, you receive the seniority premium (one week's salary per year worked, Art. 224) plus the pro-rated vacation and décimo that haven't been paid. What doesn't apply on resignation is the Art. 225 indemnity, which only applies to unjustified dismissals.
What's the difference between the seniority premium and the indemnity?
The seniority premium (Art. 224) is one week's salary per year and is paid on every indefinite contract regardless of the reason for leaving. The indemnity (Art. 225) is an additional payment that only applies when the dismissal is unjustified, on a scale that varies by tenure and start date.
If the dismissal is justified, do I lose my entire liquidation?
You don't lose it entirely: even with just cause you keep the Art. 224 seniority premium and your accrued pro-rated vacation and décimo. What is not paid in a justified dismissal is the Art. 225 indemnity.
How is severance calculated when you resign?
A resignation severance includes the seniority premium (one week's salary per year, Art. 224) plus accrued pro-rated vacation and décimo. It does not include the Art. 225 indemnity, which only applies to unjustified dismissals. Select "Resignation / mutual agreement" in this calculator to estimate it.
Does nominaHQ calculate the full liquidation with pro-rated vacation and décimo?
Yes. This calculator estimates premium and indemnity, but inside nominaHQ the payroll generates the full liquidation: seniority premium, indemnity when it applies, and the pending pro-rated vacation and décimo, all together. You can try it free for 30 days, no card required.
nominaHQ computes liquidations in your payroll.
With premium, vacation and décimo pro-rated.