Employment Cost Calculator for Panama
Calculate the total cost of employing someone in Panama, including taxes, benefits, and our management fee.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Security | 12.25% | Gross Salary |
| Education Tax | 1.5% | Gross Salary |
| Professional Risk Insurance | 0.98% - 5.67% (variable by industry) | Gross Salary |
Filing & Compliance
- Monthly payroll tax payments (Social Security, Education Tax, Professional Risk Insurance, Income Tax Withholding) due by the 15th of the following month.
- Annual income tax return detailing employee salaries and withholdings due by March 31st.
- Provide employees with income certificates summarizing annual income and taxes withheld by mid-February.
Income Tax Brackets
| Income Range | Tax Rate |
|---|---|
| Up to USD 11,000 | 0% |
| USD 11,001 to USD 50,000 | 15% on amount over USD 11,000 |
| Over USD 50,000 | USD 5,850 + 25% on amount over USD 50,000 |
Employee Contributions
| Deduction Type | Rate | Cap |
|---|---|---|
| Social Security (CSS) | 9.75% | No maximum limit |
| Education Tax | 1.25% | No maximum limit |
| Professional Risk Insurance | Varies (0.98% to 5.67%) | Varies |
Personal Allowances
- Basic annual allowance for resident taxpayers.
- Allowance for dependents (e.g., spouse, children).
- Interest on mortgage loans for a primary residence (up to USD 15,000 annually).
