Panama payroll guides
Everything you need to know about Panama payroll, explained with current law and links to official sources.
How the décimo is calculated and paid
The three installments, the dates, and the CSS rates.
CSS · Ley 462CSS employer rate (Ley 462): 2025–2029
The full schedule: 13.25%, 14.25% and 15.25%.
ISRPanama ISR table: brackets and calculation
The 0%, 15% and 25% brackets and how they apply.
SIPE · CSSWhat SIPE is and how to file with the CSS
The Caja de Seguro Social system, step by step.
DGI · ISRPlanilla 03: the salary report filed with the DGI
Monthly, salaries and ISR withheld; 60-day deadline and penalties.
Arrears · CSSCSS arrears and surcharges
Paying the SIPE late: 2%–15% surcharges plus interest.
LiquidationHow to calculate liquidation in Panama
Seniority premium, indemnity and pro-rated benefits.
Minimum wageMinimum wage in Panama 2026 (Decree 13)
In force since January 2026, by activity and region.
VacationVacation: how it's calculated (Art. 54)
30 days per 11 months and its value.
OvertimeOvertime: 25%, 50% and 75% surcharges
The surcharge by shift type and the limits.
DismissalDismissal: severance and seniority premium
Justified vs unjustified and the Art. 225 scale.
Seniority premiumSeniority premium: how it's calculated
One week's salary per year (Art. 224), with the proportional part.
Representation expensesRepresentation expenses: the separate income tax
10% and 15% withholding, separate from salary.
Professional riskProfessional risk: the employer premium
From 1.05% to 5.67% by activity (CIIU).