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*3 Months

Panama Employment Taxes

The Panamanian employer will need to pay a few additional taxes on top of the salary:

- A social security tax of 12 % (subject to change in the future).
- A professional risk tax of up to 5.67 % (depends on type of employment).
- An educational tax of 1.5 %.

There are also additions for future decimo (13th month or extra additional salary), vacation pay and more. Vacation time accumulates at 1 day for every 11.

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