Hire employees in Panama with an Employer of Record

Hiring in Panama requires a registered local employer to handle payroll, taxes, and statutory benefits. With Expand EOR, our local entity becomes the legal employer — so you can hire any candidate in Panama without setting up your own subsidiary.

The local currency is PAB / USD and the standard payroll cycle is bi-weekly (13th salary). The official working language is Spanish, and contracts must comply with Panama employment law.

• Working hours
  48 hrs/week
• Probation period
  3 months
• Notice period
  30 days
• Paid annual leave
  30 calendar days
• Public holidays
  11
• Minimum wage
  Sector & region-based

Payroll in Panama runs bi-weekly (13th salary). Employers are responsible for income tax withholding, social security contributions, and any mandatory benefits.

Estimated employer cost on top of gross salary: ~12.25% CSS + insurances. Expand EOR handles all calculations, deductions, and statutory filings on your behalf.

Total cost = gross salary + employer contributions (~12.25% CSS + insurances) + EOR fee starting at $299/month. There are no setup fees, no hidden charges, and no per-country surprises.

• Hire in Panama in days — without registering a local entity (which can take months and cost $15,000+).
• Stay 100% compliant with Panama employment, tax, and labour law.
• Pay employees in PAB / USD on time, every cycle.
• Provide compliant local benefits and a great employee experience.
• Avoid permanent establishment risk and misclassification penalties.