EOR in Panama
Employer of Record in Panama
- Save upto 3% on your payroll cost
- Hire Panamanian talent without setting up a local entity
- Manage payroll, social security, and tax obligations seamlessly
- Minimize permanent establishment risks and legal complexities
- Onboard employees quickly with compliant labor contracts
- Enter Latin American markets cost-effectively with transparent pricing
Happy Customers Globally
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Currency
Panamanian Balboa (PAB) / US Dollar (USD)
Capital
Panama City
Official Language
Spanish
Payroll Cycle
Biweekly or Monthly
Recognized Globally: Ranked #1 for ‘Ease of Use’ & ‘Customer Support’
our advantage
Why Choose Asanify's EOR in Panama
Asanify is ranked #1 across multiple categories on G2, making us the trusted choice for companies expanding globally. Panama’s strategic position as a business hub and logistics center makes it an attractive market for international expansion. Our EOR solution enables you to hire top Panamanian talent while we handle all employment compliance, payroll, and regulatory requirements.
Fast, Compliant Hiring
Recruit and onboard employees in Panama within days using employment contracts that comply with the Labor Code. Asanify ensures all legal requirements are met, from probation periods to mandatory benefits, eliminating compliance risks and accelerating your hiring timeline.
Efficient Payroll Management
Our platform automates payroll processing in US Dollars or Balboas, calculating social security contributions (CSS), income tax withholding, educational insurance, and mandatory benefits. Employees receive accurate, timely payments while you maintain full visibility through our dashboard.
Expert Compliance Support
Navigate Panama's labor regulations with confidence. Our local compliance experts monitor legislative changes, manage Caja de Seguro Social (CSS) registrations, and ensure adherence to working hour limits, vacation entitlements, thirteenth-month salary, and termination procedures.
Cost-Effective Expansion
Avoid the expenses and complexity of establishing a Panamanian entity. Asanify's transparent pricing eliminates hidden costs, making it affordable to test the market, scale operations, or maintain a permanent presence in this strategic Latin American business center.
How Asanify's Panama EOR Works
Expanding into Panama is straightforward with Asanify’s streamlined Employer of Record solution. We become the legal employer of your Panamanian workforce while you retain complete operational control over daily activities, performance management, and business strategy.
- Quick Deployment: Onboard employees within days using compliant local employment contracts
- Comprehensive Administration: We manage payroll, tax filings, social security, benefits, and labor law compliance
- Risk Reduction: Minimize permanent establishment concerns and ensure ongoing regulatory adherence
Trusted by top companies around the Globe
Employer of record
Employment Compliance in Panama
Panama’s employment framework is governed by the Labor Code, which establishes comprehensive worker protections including maximum working hours, vacation rights, maternity leave, thirteenth-month salary (décimo), and severance requirements. Employers must register with the Caja de Seguro Social (CSS), contribute to social security, withhold income tax, and pay educational insurance. Additional requirements include occupational risk insurance and compliance with collective bargaining agreements where applicable. Asanify’s EOR ensures your Panama operations remain compliant with all statutory obligations.
- Social security (CSS) contributions and registrations managed accurately
- Income tax withholding and educational insurance handled properly
- Full adherence to Labor Code provisions on benefits and termination
What our happy customers say
Asanify's, should be the number 1 choice for companies looking to pay their overseas employees and contractors. I have a team of 40 people in India and not for a single month have i experienced any delays in the payment process.
In my business, things happen fast, and requirement for new employees is sudden. In such a situation a trusted partner like Asanify comes in handy as I know I can quickly ramp with onboarding and employee formalities diligently taken care of.
As a global company, we go through M&As in countries where we do not have presence. In India, we quickly onboarded ~30 employees as part of a takeover. With Asanify's turnaround time the overall change was managed brilliantly.
Asanify’s expertise when it comes to Local Compliances is something I have benefitted extensively from. Whether its Employee-Contractor classification, or the local laws for employee benefits and working hours - I trust the guidance provided.
Apart from using EOR services, I find a lot of value in the fully automated Asanify HRMS. For me, it makes it absolutely comfortable that I can access all my HR inforation anytime, anywhere and on any platform - Slack, Whatsapp etc.
My employees are in India, while I am based in Dubai and the co. in the US. Managing time zones is a huge challenge for us. Working with global partners like Asanify ensures that all my payments, and query resolutions are done in time.
It is paramount that my employees are well taken care of. Asanify goes above and beyond In terms of employee benefits, salary structuring to make it more tax friendly and constant guidance. For over a year with Asanify’s EOR, I have had no reason to feel disappointed.
Employer of Record FAQs in Panama
What is an Employer of Record in Panama?
An Employer of Record (EOR) in Panama is a legal entity that hires employees on your behalf, managing all employment responsibilities including contracts, payroll, taxes, social security, and compliance with Panamanian labor laws. You maintain operational control while the EOR assumes legal employment obligations.
How quickly can I hire employees in Panama using an EOR?
With Asanify’s EOR service, you can onboard employees in Panama within 3-5 business days once candidate information is provided. We handle contract preparation, CSS registration, and all compliance documentation to ensure a smooth, rapid hiring process.
What are the payroll and tax obligations in Panama?
Panamanian employers must contribute to social security (CSS) at 12.25% of salary, withhold employee contributions (9.75%), pay educational insurance (1.25% employer, 1.25% employee), and withhold income tax on a progressive scale. The thirteenth-month salary (décimo) is also mandatory. Asanify manages all calculations and timely remittances.
Does using an EOR create permanent establishment risk in Panama?
When properly structured, an EOR arrangement significantly reduces permanent establishment risk. Asanify serves as the legal employer, managing all employment-related activities in compliance with local laws, minimizing your company’s PE exposure in Panama.
What employee benefits are mandatory in Panama?
Mandatory benefits in Panama include social security coverage, annual vacation (30 days after one year), public holidays, thirteenth-month salary (décimo tercer mes), maternity leave (14 weeks), sick leave, and severance pay (preaviso and indemnización) upon termination. Asanify ensures all statutory benefits are properly administered.
How are employment contracts structured in Panama?
Panamanian employment contracts can be indefinite or fixed-term, and should be written in Spanish. Contracts must specify job duties, compensation, working hours, probation periods (typically 3 months), and termination conditions. Asanify prepares legally compliant contracts tailored to your specific hiring needs.
What is the standard working week in Panama?
The standard working week in Panama is 48 hours for daytime work and 42 hours for mixed shifts, typically distributed over six days. Overtime is permitted with legal limits and premium pay requirements. Asanify ensures working hour compliance and accurate overtime calculations.
How does employee termination work in Panama?
Termination in Panama requires just cause or payment of severance (preaviso for notice and indemnización for wrongful termination). Notice periods and severance calculations depend on tenure and circumstances. Asanify manages compliant offboarding, reducing legal risks associated with employee separations.
Can Asanify handle both local and foreign employees in Panama?
Yes, Asanify manages employment for both Panamanian nationals and foreign workers. For foreign employees, we coordinate work permit applications, visa requirements, and ensure compliance with immigration and labor regulations.
Start Hiring in Panama Today
Partner with Asanify to build your Panamanian team quickly, compliantly, and cost-effectively.