Obtaining a work permit in Panama
Foreigners looking for jobs or already hired by a company established in Panama, will need two things to be able to work:
- Obtain a visa or residence permit
- Obtain a Work Permit
Bufete Illueca | Lawyers in Panama recommends that the processing of a work permit should be done simultaneously with the processing of a visa or residence permit since both procedures are related and depend on each other. As attorneys specialized in labor and immigration law, our expertise is a guarantee for positive results.
Among the work permits available to foreigners we can list:
- Permits for foreigners whose spouse is of Panamanian nationality.
- Permits for foreigners who have ten or more years of residence in Panama.
- Permits for foreigners who want to be considered as part of the company’s 10% of the staff that is allowed by law to be foreign.
- Permits for foreigners who want to be considered as part of the company’s additional 5% (15% overall) of the staff that is allowed by law to be foreign as long as they are experts or specialized technicians.
- Permits for foreigners who want to be considered on a temporary basis as part of the company’s additional 5% (15% overall) of the staff that is allowed by law to be foreign as long as they are experts or specialized technicians.
- Permits for business executives of companies registered in the Colon Free Zone.
- Permits for foreigners who want to work for a company that has less than ten workers, in accordance with Law 23 of July 15, 1997 (Marrakesh Agreement).
- Permits for foreigners considered by a company as a trusted employee as long as the company’s businesses are carried out abroad.
- As a refugee.
Learn about hiring foreign personnel in Panama
- Each time a company hires a person, it will need four copies of the employment contract: one for the Ministry of Labor, one for the Social Security Fund, one for the worker and one for the company, which we advise to keep in a safe place. For the purposes of Panamanian labor law, it is important for the company to keep a good record of its employees because in the event of disputes, this type of basic information is extremely useful.
- Labor law does not allow a company or business to exceed the established percentage of foreign employees that can be hired. The percentages are 10% in the case of regular employees and an extra 5% (15% overall) in case of specialized personnel or technicians. Exceeding these percentages can have serious consequences for your business.
- If a company has more than 10 employees, it must have workplace regulations. This document is of great importance and it must be submitted to the Ministry of Labor. Through the workplace regulations, the company or business establishes obligations and working procedures within the company. The absence of work regulations exposes the company to sanctions and penalties.
- Any company must be fully informed on the management of its payroll, the staff’s representation expenses, salaries in kind, and any aspect related to taxes. If the company’s payroll and salaries are not correctly recorded, repercussions and sanctions from the Social Security Fund can be expected.
- Social Security Law allows an employer to have a special payroll for its executives.
- When hiring foreign personnel, the following factors must be considered:
- The foreigner must possess a visa or residence permit
- The foreigner must hold a work permit
- The foreigner must be included in the payroll
- The foreigner and the employer must pay the corresponding taxes (income and social security)
If you have any further inquiries, kindly contact our team of lawyers at info@illueca.com.
