How much money does a person working in Panama make?
Average Monthly Salary
2,120 PAB
( 25,400 PAB yearly)
LOW
540
PABAVERAGE
2,120
PABHIGH
9,460
PAB
All salary figures displayed here are
per monthexcept when noted otherwise.
All salary and compensation figures displayed here are gross salary figures, that is the salary before tax deductions. Because taxes may differ across sectors and locations, it is difficult to accurately calculate the net salary after tax for every career.
A person working in Panama typically earns around 2,120 PAB. Salaries range from 540 PAB (lowest average) to 9,460 PAB (highest average, actual maximum salary is higher).
Salary Variance
This is the average salary including housing, transport, and other benefits. Salaries in Panama vary drastically between different careers. If you are interested in the salary of a particular job, see below for salaries for specific job titles.
Pay Scale and Salaries in Panama
Salary Structure and Pay Scale Comparison
5% of people earn
4,110 PAB or more
10% of people earn
3,210 to 4,110 PAB
20% of people earn
1,250 PAB or less
65% of people earn
1,250 to 3,210 PAB
540 PAB |
1,880 PAB |
9,460 PAB |
Median Salary, maximum and minimum salary, minimum wage, starting salary, and the salary range
All salary figures displayed here are
per monthexcept when noted otherwise.
Salary Range, Minimum Wage, and Starting Salary
Salaries in Panama range from 540 PAB (starting salary) to 9,460 PAB (maximum average salary, actual maximum is higher). This is not the minimum wage as per the law, only the lowest reported number in the salary survey that had thousands of participants and professionals from all over the country.
Median Salary
The median salary is 1,880 PAB, which means that 50% of the population in Panama earns less than that while the other half earns more. The median represents the middle salary value. Generally speaking, you would want to be on the right side of the graph with the group earning more than the median salary.
Percentiles and Salary Scale
Closely related to the median are two values: the 25th and the 75th percentiles. Reading from the salary distribution diagram, 25% of the population in Panama earn less than 1,360 PAB while 75% of them earn more. Also from the diagram, 75% of the population earn less than 2,850 PAB while 25% earn more than that.
Pay Scale Structure
We grouped the most common and recurring salaries into brackets to give more insight into what salary to expect. This method is more accurate than just the average salary and gives more insights into how salaries are actually distributed in Panama. Around 65% of all reported figures are in the range 1,250 PAB to 3,210 PAB. Approximately 20% fall under the 1,250 PAB cap. Ten percent of wages are from 3,210 PAB to 4,110 PAB. Only 5% of people grossed 4,110 PAB or more.
Salary Comparison by Years of Experience
How does a person's salary progress over time?
Salary is primarily determined by the level of experience one possesses, with higher levels of experience resulting in higher wages.
In Panama, employees with two to five years of experience typically earn an average of 32% more than entry-level and junior workers in all industries and fields.
Individuals with more than five years of experience tend to earn an average of 36% more than those with less than five years of experience.
After ten years of work, salaries increase by 21%, with an additional 14% increase for those who have worked for over 15 years.
These figures should be used as rough estimates, as considering individual job titles can lead to more accurate assessments.
Change in salary based on experience varies drastically from one location to another and depends hugely on the career field as well. The data displayed here is the combined average of many different jobs. To view accurate figures, choose a specific job title.
“ On average, a person's salary doubles their starting salary by the time they cross the 10 years* experience mark. ”
* Based on the average change in salary over time. Salary variations differ from person to person.
Salary Comparison By Education
How does the education level affect your salary?
Change in salary based on education varies drastically from one location to another and depends hugely on the career field as well. The data displayed here is the combined average of multiple jobs. To view accurate figures, choose a specific job title.
The correlation between higher education and higher salary is widely acknowledged, but how much of an income increase can one expect from obtaining a degree?
We conducted a study in Panama comparing the salaries of professionals with different levels of college degrees who held similar positions in various industries.
Our results showed that individuals with a certificate or diploma earned an average of 17% more than those who only completed high school.
Those who obtained a Bachelor's Degree earned 24% more than their counterparts with a certificate or diploma.
Professionals with a Master's Degree earned 29% more than those with a Bachelor's Degree.
Finally, those who held a PhD earned an average of 23% more than those with a Master's Degree while performing the same job.
Is investing in a Master's degree or an MBA worth it? Is pursuing higher education worth the investment?
Earning a Master's degree or any post-graduate qualification in Panama is a substantial financial commitment, with tuition fees ranging from 10,600 PAB to 31,800 PAB and a duration of around two years. It's important to note that during this period, any salary increases are unlikely, assuming ongoing employment. Salary reviews are typically conducted after completing the program and obtaining the degree.
Many individuals pursue advanced education as a means of transitioning to higher-paying positions, and the statistics indicate that this is an effective strategy. On average, individuals who change jobs after earning a higher degree receive a salary increase of about 10% more than the typical annual raise.
Ultimately, deciding whether or not to pursue advanced education depends on a variety of factors, including the personal situation and experience. However, if one can afford the financial costs of obtaining a higher degree, the return on investment is likely to be worthwhile, with the ability to recoup the costs in approximately a year.
Salary and Compensation Comparison By Gender / Panama
Though gender should not have an effect on pay, in reality, it does. So who gets paid more: men or women? In Panama, the average difference between the salary of male and female employees is 5% across all career fields.
| Male | 2,170 PAB | |
| Female | -5% | 2,060 PAB |
Percentage increase and decrease are relative to the previous value
Average Annual Salary Increment Percentage in Panama
How much are annual salary increments in Panama? How often do employees get salary raises?
Panama
Employees in Panama are likely to observe a salary increase of approximately 7% every 19 months.
The figures provided here are averages of numbers. Those figures should be taken as general guidelines. Salary increments will vary from person to person and depend on many factors, but your performance and contribution to the success of the organization remain the most important factors in determining how much and how often you will be granted a raise.
The term Annual Salary Increase usually refers to the increase in 12 calendar month period, but because it is rare that people get their salaries reviewed exactly on the one-year mark, it is more meaningful to know the frequency and the rate at the time of the increase.
How to calculate the salary increment percentage?
The annual salary Increase in a calendar year (12 months) can be easily calculated as follows: Annual Salary Increase = Increase Rate x 12 / Increase Frequency
“The average salary increase in one year (12 months) in Panama is 4%.”
Annual Increment Rate By Industry 2022
| Banking | 5% | |
| Energy | 1% | |
| Information Technology | 6% | |
| Healthcare | 2% | |
| Travel | 7% | |
| Construction | 3% | |
| Education | 8% |
Listed above are the average annual increase rates for each industry in Panama for the year 2022. Companies within thriving industries tend to provide higher and more frequent raises. Exceptions do exist, but generally speaking, the situation of any company is closely related to the economic situation in the country or region. These figures tend to change frequently.
Average Salary Increase Rate by Experience Level
| Junior Level | 3% - 5% | |
| Mid-Career | 6% - 9% | |
| Senior Level | 10% - 15% | |
| Top Management | 15% - 20% |
The difference in increment rates is somehow justified because employers put more effort to retain more experienced staff since they are harder to acquire than less experienced ones.
Worldwide Salary Raises: All Countries and All Jobs
Salary Packages and Schemes
Not all compensation increases are reflected directly in the salary. Some companies offer upgraded packages to their staff instead of cash money. The figures displayed here account only for direct increments to the base salary.
Bonus and Incentive Rates in Panama
How much and how often are bonuses being awarded?
49% of surveyed staff in Panama reported that they haven't received any bonuses or incentives in the previous year while 51% said that they received at least one form of monetary bonus.
Those who got bonuses reported rates ranging from 3% to 6% of their annual salary.
| Received Bonus | 51% | |
| No Bonus | 49% |
Types of Bonuses Considered
Individual Performance-Based Bonuses
The most standard form of bonus, where the employee is awarded based on their exceptional performance.
Company Performance Bonuses
Occasionally, some companies like to celebrate excess earnings and profits with their staff collectively in the form of bonuses that are granted to everyone. The amount of the bonus will probably be different from person to person depending on their role within the organization.
Goal-Based Bonuses
Granted upon achieving an important goal or milestone.
Holiday / End of Year Bonuses
These types of bonuses are given without a reason and usually resemble an appreciation token.
Bonuses Are Not Commissions!
People tend to confuse bonuses with commissions. A commission is a prefixed rate at which someone gets paid for items sold or deals completed while a bonus is in most cases arbitrary and unplanned.
Bonus Rates Comparison by Career Field
| Finance | High | |
| Architecture | High | |
| Sales | High | |
| Business Development | High | |
| Marketing / Advertising | High | |
| Information Technology | Moderate | |
| Healthcare | Moderate | |
| Insurance | Moderate | |
| Customer Service | Moderate | |
| Human Resources | Moderate | |
| Construction | Low | |
| Transport | Low | |
| Hospitality | Low |
What makes a position worthy of good bonuses and a high salary?
The main two types of jobs | |
| Revenue Generators | Supporting Cast |
Employees that are directly involved in generating revenue or profit for the organization. Their field of expertise usually matches the type of business. | Employees that support and facilitate the work of revenue generators. Their expertise is usually different from that of the core business operations. |
Example: | Example: |
Revenue generators usually get more and higher bonuses, higher salaries, and more frequent salary increments. The reason is quite simple: it is easier to quantify your value to the company in monetary terms when you participate in revenue generation.
“Try to work for companies where your skills can generate revenue. We can't all generate revenue and that's perfectly fine.”
Bonus Comparison by Seniority Level
Top management personnel and senior employees naturally exhibit higher bonus rates and frequencies than juniors. This is very predictable due to the inherent responsibilities of being higher in the hierarchy. People in top positions can easily get double or triple bonus rates than employees down the pyramid.
Salary Trend and Forecast in Panama
How are salaries changing over time? Listed below is a chart that shows the average salary in recent years.
| Average Salary 2019 | 1,930 PAB | |
| Average Salary 2020 | +3% | 1,980 PAB |
| Average Salary 2021 | +2% | 2,020 PAB |
| Average Salary 2022 | +3% | 2,080 PAB |
Percentage increase and decrease are relative to the previous value
Salaries in Panama are on the rise in the year 2023 based on recently submitted salaries and reports. The trend suggests a slow yet continuous increase in pay in 2024 and future years. These numbers may vary from one industry to another.
Salaries for popular jobs. Salaries by occupations.
| Job Title | Average Salary |
| Accounting and Finance | |
| Accountant | 1,450 PAB |
| Accounting Assistant | 1,100 PAB |
| Accounting Manager | 3,150 PAB |
| Bookkeeper | 920 PAB |
| Chartered Accountant | 1,780 PAB |
| Corporate Treasurer | 2,770 PAB |
| Financial Analyst | 2,690 PAB |
| Financial Manager | 4,170 PAB |
| Internal Auditor | 2,000 PAB |
Administration / Reception / Secretarial | |
| Administrative Assistant | 1,110 PAB |
| Office Manager | 1,780 PAB |
| Receptionist | 810 PAB |
| Secretary | 890 PAB |
Advertising / Graphic Design / Events | |
| Art Director | 1,970 PAB |
| Creative Director | 2,110 PAB |
| Graphic Designer | 1,260 PAB |
| Photographer | 1,150 PAB |
Airlines / Aviation / Aerospace / Defense | |
| Aerospace Engineer | 2,650 PAB |
| Air Traffic Controller | 2,200 PAB |
| Flight Attendant | 1,390 PAB |
| Pilot | 3,600 PAB |
Architecture | |
| Architect | 2,510 PAB |
| CAD Drafter | 1,030 PAB |
Automotive | |
| Mechanic | 740 PAB |
| Service Advisor | 1,410 PAB |
Banking | |
| Bank Branch Manager | 3,900 PAB |
| Teller | 770 PAB |
Bilingual | |
| Teacher | 1,560 PAB |
| Translator | 1,780 PAB |
Business Planning | |
| Business Analyst | 2,640 PAB |
| Business Development Manager | 3,360 PAB |
| Project Manager | 2,310 PAB |
Care Giving and Child Care | |
| Nanny | 870 PAB |
| Nursery Teacher | 800 PAB |
Construction / Building / Installation | |
| Civil Engineer | 1,890 PAB |
| Construction Project Manager | 3,450 PAB |
| Health and Safety Officer | 960 PAB |
Customer Service and Call Center | |
| Call Center Representative | 740 PAB |
| Customer Service Manager | 2,670 PAB |
| Customer Service Representative | 790 PAB |
Engineering | |
| Electrical Engineer | 2,020 PAB |
| Engineer | 2,010 PAB |
| Mechanical Engineer | 2,040 PAB |
Executive and Management | |
| Chief Executive Officer | 4,430 PAB |
| Chief Financial Officer | 4,290 PAB |
| General Manager | 3,460 PAB |
Food / Hospitality / Tourism / Catering | |
| Chef | 1,260 PAB |
| Executive Chef | 1,510 PAB |
| Hotel Manager | 3,660 PAB |
| Travel Agent | 1,330 PAB |
| Waiter / Waitress | 640 PAB |
Health and Medical | |
| Dentist | 4,700 PAB |
| Dietitian | 3,850 PAB |
| Laboratory Technician | 1,620 PAB |
| Nurse | 1,620 PAB |
Human Resources | |
| Human Resources Manager | 3,000 PAB |
| Human Resources Officer | 1,280 PAB |
Information Technology | |
| Computer Technician | 1,630 PAB |
| Database Administrator | 2,080 PAB |
| Developer / Programmer | 2,040 PAB |
| Information Technology Manager | 3,530 PAB |
| Network Engineer | 1,810 PAB |
Law Enforcement / Security / Fire | |
| Police Officer | 1,260 PAB |
Legal | |
| Attorney | 4,110 PAB |
| Legal Assistant | 1,070 PAB |
Media / Broadcasting / Arts / Entertainment | |
| Journalist | 2,290 PAB |
Pharmaceutical and Biotechnology | |
| Biomedical Engineer | 1,830 PAB |
| Pharmacist | 2,580 PAB |
Sales Retail and Wholesale | |
| Cashier | 750 PAB |
| Sales Manager | 3,590 PAB |
| Sales Representative | 1,310 PAB |
Teaching / Education | |
| Elementary School Teacher | 1,360 PAB |
| Secondary School Teacher | 1,730 PAB |
Average Hourly Wage in Panama
12 PAB per hour
The average hourly wage (pay per hour) for all employees in Panama is 12 PAB.This is the rate that the average individual gets paid for every worked hour.
Hourly Wage = Annual Salary / ( 52 x 5 x 8 )
About The Hourly Pay Rate
The hourly wage is the salary paid in one worked hour. Usually, jobs are classified into two categories: salaried jobs and hourly jobs. Salaried jobs pay a fixed amount regardless of the hours worked. Hourly jobs pay per worked hour. To convert salary into hourly wage the above formula is used (assuming 5 working days in a week and 8 working hours per day which is the standard for most jobs). The hourly wage calculation may differ slightly depending on the worked hours per week and the annual vacation allowance. The figures mentioned above are good approximations and are considered to be the standard. One major difference between salaried employees and hourly paid employees is overtime eligibility. Salaried employees are usually exempt from overtime as opposed to hourly paid staff.
What is the minimum hourly rate of pay?
The minimum pay rate per hour for a person in Panama is 3 PAB. This is the minimum as per the gathered data in the salary survey not the minimum hourly rate mandated by law.
Government vs Private Sector Salary Comparison
Where can you get paid more, working in a private company or the government? The difference between the public or government sector salaries and the private sector salaries in Panama is 5% on average across all career fields.
| Private Sector | 2,060 PAB | |
| Public Sector | +5% | 2,170 PAB |
Percentage increase and decrease are relative to the previous value
Salary Statistics and Calculation Guide
What is considered to be a good and competitive salary in Panama?
It is extremely difficult to give an exact figure of a good salary when no specific job is selected, however; an estimate can be provided based purely on the cost of living. A good compensation in Panama would range anywhere between 1,880 PAB and 2,850 PAB.
Gross Salary (before tax) and Net Salary (after tax)
All salary and compensation figures displayed here are gross salary figures, that is the salary before tax deductions. Because taxes may differ across sectors and locations, it is difficult to accurately calculate the net salary after tax for every career.
Base / Basic Salary
The base salary in Panama ranges from 1,360 PAB to 2,850 PAB. The base salary depends on many factors including profession, experience, and education. It is not easy to provide a figure with very little information, so take this range with a grain of salt.
What is the difference between the median and the average salary?
Both are indicators. If your salary is higher than both the average and the median then you are doing very well. If your salary is lower than both, then many people earn more than you and there is plenty of room for improvement. If your wage is between the average and the median, then things can be a bit complicated. We wrote a guide to explain all about the different scenarios. How to compare your salary
Browse SalariesSalary Increase LettersBest Paying Jobs
