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If you are interested in hiring a remote team in Panama, or even just individual remote employees in Panama, then you have come to the right place!
Rivermate is an Employer of Record (EOR) that offers Panama payroll solutions. As a Panama payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Panama. We are confident Rivermate’s payroll solutions Panama will help you grow as a business—because now, you won’t have to worry about your payroll solutions Panama. We take care of everything payroll!
With Rivermate, you can run Panama payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.
Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!
Once you've determined the best Panama payroll option for your company, you'll need to collect some information from employees in order to add them to your payroll. Begin by acquiring their personal identification number, tax deduction card, and emergency contact information. When an employee begins working and provides you with their tax deduction card, they become a part of the social security system and are eligible for benefits.
Panama has some favorable tax laws, particularly for foreign residents and workers. For residents, non-residents, and businesses, all income earned outside the country is tax-free. Because income tax is levied at a progressive rate, employees owe more as their earnings rise.
Employees must pay 9.75% of their gross pay toward social insurance and 1.25% toward educational insurance. Employers contribute 12.75% of employee pay, plus a 1.5% educational insurance tax.
Companies that wish to expand their operations globally have four different payroll options in Panama. These payroll options are:
1. Internal Payroll. This payroll option is applicable for already established companies in Panama. It includes devoting an entire Human Resources staff to running the company's payroll procedures.
2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.
Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.
3. Panama payroll outsourcing: Outsourcing your payroll to an Employer of Record in Panama, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!
It is the obligation of the employer to ensure that all payroll-related transactions are properly documented and recorded. All salaries and compensation payments must adhere to the local minimum wage as well as other applicable laws and regulations.
Rivermate's payroll services in Panama can assist you in staying in compliance with the country's ever-changing payroll rules. We provide an all-inclusive solution that covers everything from compliance and reporting to salary payments.)
Companies that have a business presence in Panama have different ways of managing payroll. However, most of the options you have for running payroll in Panama are either expensive or require establishing a subsidiary in Panama. The cheapest, most efficient, and most reliable payroll processing system in Panama is by outsourcing payroll to Employers of Record (EOR) in Panama. Rivermate is one of those Employers of Record.
At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Panama. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Panama. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.
Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Panama.
In Panama, an employee's dismissal must be justified by the labor code. A written notice of termination must be issued, stating the reason for the termination and the date on which it was granted. A dismissal that violates labor code provisions is considered unreasonable, and the employee may have a claim before a labor court. Employers may continue with the dismissal if the labor court does not settle the issue within 60 days.
However, certain categories of employees may be discharged without cause (domestic workers, fishing or agricultural workers, retail workers).
The minimum wage in Panama is determined by industry and varies depending on the size of the business and area. It costs between US$275 and US$971.28 a month.
Panama's standard workweek is 48 hours and eight hours per day. Night work is limited to 42 hours per week and seven hours per day between 6:00 p.m. and 6:00 a.m. Daytime and nighttime work hours are limited to 45 hours per week, or 7.5 hours per day.
Young employees under the age of 16 are limited to 36 hours per week and six hours per day. Employees between the ages of 16 and 18 are limited to 42 hours per week, or seven hours per day.
Payroll taxes and the general budget are used to finance mandatory healthcare. Private healthcare is also accessible, although it is the secondary choice for primary care.
The national health system offers essential health care.