2.25% - Workers' severance payments
1.50% - Education contribution
1.25% - Education contribution
0% - 0 - 11,000 US$
15% - 11,000 - 50,000 US$
25% - 50,000 and above US$
Minimum wage is $416 per month.
Employer: contributes 4.25% of employee’s gross monthly earnings greater than 500 balboas.
Employee: contributes 8.16% of gross monthly earnings above 500 balboas.
There are 13 paid public holidays.
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.
Employee must provide 15 days written notice.
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.
VAT is 7% standard rate.