Business
Panama — Business: Hiring Employees
Employer social security costs and registration duties in Panama, from the CSS general income regulation (June 2020 edition). Rates may have changed since, so confirm current rates with the CSS.
VerifiedGovernment / official sourceCaja de Seguro Social (CSS) – Reglamento General de Ingresos (edition updated to June 2020)Last reviewed: 2026-10-27
Key facts
- Since 1 January 2013 the employer contribution is 12.25% of wages paid, and the employee pays 9.75% of wages.
- Employers also contribute for occupational risk coverage under Cabinet Decree 68 of 1970.
- On each of the three instalments of the thirteenth-month payment (décimo tercer mes), the employer pays a special contribution of 10.75% of the sum paid and the employee pays 7.25%.
- Employers report the thirteenth-month sums in the monthly payroll filed for April, August and December (Article 50).
- An employer who has not registered with the CSS is in breach from the seventh working day after starting operations or using an employee on a wage; the fine can range from B/.100 to B/.5,000 (Article 75).
- Employers must register with the CSS as employers before employing staff; the regulation is the June 2020 edition, so check current rates with the CSS.
Steps
- Obtain Work Permit — Contact the Ministry of Labor to initiate the process, but no clear information is available on this step.