Panama’s Labor Minister, Jackeline Muñoz, expressed confidence that worker and employer representatives will reach a consensus on a new national minimum wage by December 10. The minister made these remarks during a media briefing this week, emphasizing the ongoing dialogue’s peaceful and productive nature. This negotiation process aims to establish a new wage floor that balances worker needs with the economic realities faced by businesses across the country.
The formal discussion table has already approved its internal regulations and work schedule. Initial technical meetings included presentations from the Ministry of Economy and Finance (Panama), among other government bodies, providing economic statistics to inform the debate. Minister Muñoz stressed that the government will not propose a specific salary adjustment figure at this stage, instead calling for prudence to prevent negative impacts on employment levels.
“That leaves us with a margin until December 10 to reach an agreement or not. I hope that the worker sector and the employer sector can reach an agreement to make a joint proposal to the Executive,” said Labor Minister Jackeline Muñoz. [Translated from Spanish]
She highlighted that while worker representatives have presented high aspirations, including a proposal of $900 for some sectors, the process must find a middle ground. The minister warned that an unbalanced increase could force closures of many small and medium-sized enterprises, which form the backbone of the Panamanian economy. Such an outcome would likely lead to more layoffs and damage the formal employment sector.
Economic Prudence Guides Wage Negotiations
Minister Muñoz firmly stated that the government will not preview any potential salary ranges. She described this as the moment for the social partners to present their numbers and negotiate in good faith. The National Authority for Micro, Small and Medium Enterprises (Ampyme) is participating as an observer to articulate the limits of the most vulnerable business segments. The minister explicitly stated the goal is to avoid irresponsible decisions that result in job losses.
If the worker and employer sectors fail to reach a consensus by the December 10 deadline, the Executive Branch will, by law, impose a final figure. The current average minimum wage, effective until the end of December 2025, stands at $636.80. Specific sectors, such as aeronautical technicians, have a higher minimum wage of $1,015.03.
“This is not the time for the Executive to give expectations. It is the turn of the worker sector and the employer sector to put their numbers on the table,” Muñoz reiterated. [Translated from Spanish]
The minister also addressed the complex issue of unifying the country’s different wage regions. She indicated that while some specific activities might be integrated, a broad unification would effectively create a double wage increase within a single process. This approach is not considered viable in the current economic context. She recalled that a previous negotiation reduced the regions from three to two, an action that carried a significant additional cost for employers.
Labor Market Context and Future Initiatives
Minister Muñoz characterized the current wage discussion as historic because its outcome affects both employed workers and those seeking jobs. She provided context on the national employment situation, noting that 2025 began with a 31 percent growth in new hiring. That promising rate was slowed to 8 percent by street protests and blockades that paralyzed parts of the country. Despite this slowdown, Panama is projected to close the year with 45,000 new employment contracts.
She was careful to note that these new contracts do not directly alter the annual unemployment rate, which will be officially released in December. Looking ahead to 2026, Mitradel and the Ministry of Commerce are preparing a training plan designed to connect job seekers with opportunities in emerging industries. The minister also mentioned that young people show a high disposition to work, though with different expectations, prompting the government to strengthen soft skills programs in conjunction with COSPAE.
Progress was reported on other labor fronts as well. In the banana-producing province, over a thousand workers have now been formally signed by the Chiquita company. The Ministry of Housing also withdrew an eviction order for a local community, a development the minister described as a positive step forward. In the realm of union activity, she highlighted that the football players’ union gained access to the Union Training Fund for the first time, breaking a previous concentration of access by five major labor centrals.
The minister confirmed the Mitradel will provide support for an important upcoming event organized by the players’ union. When asked about the situation with the Suntracs construction workers union, Minister Muñoz clarified that its new board of directors does not comply with the Labor Code and has not managed the necessary corrections. She specified the matter now rests with the Judicial Branch, as her ministry decided against internal administrative actions, allowing the courts to determine the appropriate next steps. The Panamanian government continues to navigate a complex economic landscape while fostering dialogue between workers and employers.