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Executive Decree No. 1 of January 10th, 2024
The President of the Republic has issued the new Minimum Wage Decree that becomes effective as of January 16th, 2024, considering that a consensus was not reached in the Minimum Wage Commission, and it is up to the Executive Branch to set the new applicable rates.
It is important to remember that the minimum salary is the lowest amount of money to be paid by the employer to the worker, fixed per unit of time, for the region of activity or profession in question. The monthly salary to be received by each worker will depend on the number of hours per week agreed in the employment contract.
This is not a general wage increase. The increase applies only to those workers who receive the minimum wage or whose current salary is lower than the new minimum wage due to the increase.
In general terms, the new increase corresponds to the following percentages:
- 4.5% small companies
- 6.0% large companies
- 7.0% banana companies
The specific hourly rate, corresponding to each activity, profession and region can be consulted at the following link: https://www.gacetaoficial.gob.pa/pdfTemp/29946_A/102409.pdf
The classification of the country’s districts in Region 1 and Region 2 remained unchanged, but some activities have the same rate applicable for both regions.
The rate for domestic work was set as in previous occasions at a monthly amount. The new monthly rate is B/. 340 for Region 1 and B/. 315 for Region 2.
For more information, please get in touch with our Labor Law team at [email protected].