HR & Labor
Minimum wage is $416 per month.
Employer contributes 4% of the first 500 balboas earned per month.
Employee contributes 9.25% of the first 500 balboas earned per month. No monthly salary ceiling.
Severance pay is counted at the rate of one week’s wages for each year the employee has worked for the company. The employee also receives vacation payment which is 30 days for each 11 consecutive months worked. In additional they also receive the 13th month payment.
Employee must provide 15 days written notice.
If the employee has been in the company for less than 2 years, they will receive a month’s notice. If over 2 years, no notice is required.
Employees are entitled to 18 paid sick days.
The employee is entitled to 30 days of vacation after working in the company for 11 consecutive months. If contract is terminated and the employee hasn’t used the vacation days, those days would be refunded.
There are 13 paid public holidays.
Additional Employee Withholdings
1) Individual Social Security Account
2) Education Contribution
1) Employer contributes 4.25% of employee’s gross monthly earnings greater than 500 balboas.
2) Employer contributes 1.5%.
1) Employees contribute 8.16% of gross monthly earnings above 500 balboas.
2) Employee contributes 1.25%.
VAT is 7% standard rate.