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*3 Months

Panama Decimo Information

Each Panamaian employee is entitled to one additional salary per year. This bonus salary is paid in three parts every year, on January 15th, May 15th and September 15th.

From each date above the decimo starts accumulating again at a rate of 8 and 1/3 % of the amount paid as salary each time (or 1/12 of the combined amount).

The decimo payments themselves are subject to an alternative tax:

- The employer has to pay 11.75 % on top when paying the decimo to the Panamanian government.
- The employee will be subject to a 7.25 % deduction before the decimo payment is issued.

The decimo payment does not accumulate more decimo nor vacation time.

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