Relevant Aspects Of Law 462 Of 2025, Which Amends Panama's Social Security System

• Published date: 22 September 2025
• Law Firm: Icaza Gonzalez-Ruiz & Aleman
• Author: Mr Javier José Vallarino and Karen Y. Tejeira

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 US$.50,000.00.

• Penalties for other violations of the Organic Law and...