Employment Cost Calculator for Panama
Calculate your complete hiring costs for Panama employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
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).
