Amendment To Panama's Social Security System

• Published date: 25 September 2025
• Law Firm: Icaza Gonzalez-Ruiz & Aleman
• Author: Mr Javier José Vallarino and Karen Y. Tejeira

Relevant aspects of Law 462 of 2025, which amends Panama's Social Security System

Increase in the Employer's Contribution

The employer's contribution is increased gradually or staggered by three (3) percentage points, as follows:

• As of April 1^st, 2025, it increases 1%, from 12.25% to 13.25%.
• As of March 1st, 2027, it increases 1%, from 13.25% to 14.25%.
• As of March 1^st, 2029, it increases 1%, from 14.25% to 15.25%.

Employees Contribution

The contribution paid by employees does not increase, it will remain at 9.75%.

Increase in Penalties for Non-Compliance

The amount of penalties or fines that the Social Security Fund ('Caja de Seguro Social') may impose on employers in the event of non-compliance with their employer obligations is increased, as follows:

• False statements, underreporting or omissions: fines of up to US$30,000.00.

• Failure to comply with the obligation to provide information requested by Social Security Fund: fine of up to US$ 50,000.00.

• Simulation of legal acts: Fine of up to...