🇵🇦Panama 13th Salary Calculator
Panamanian law guarantees one full month's salary per year as the 13th month, split into three equal installments paid on April 15, August 15, and December 15.
13th Month (Cabinet Decree 221 of 1971)USD ($)
Panamanian law guarantees one full month's salary per year as the 13th month, split into three equal installments paid on April 15, August 15, and December 15.
Compensation & Service Period
Subject to a special Social Security contribution of 7.25% (CSS) and income tax withholdings.
Formula: Panamanian 13th Month = $1,200 × (12/12) = $1,200. Paid in 3 equal parts (April 15, August 15, and December 15), subject to CSS (7.25%) and ISR.
Advance payment paid gross without social security or tax withholdings.
Final balance after statutory tax and social security withholdings.
Detailed Payment Breakdown
13th Month (Cabinet Decree 221 of 1971)
Subject to a special Social Security contribution of 7.25% (CSS) and income tax withholdings.
Compare with Other International Jurisdictions
Frequently Asked Questions
How is the 13th salary calculated in Panama?
Panamanian law guarantees one full month's salary per year as the 13th month, split into three equal installments paid on April 15, August 15, and December 15.
How is the 13th salary taxed in Panama?
Subject to a special Social Security contribution of 7.25% (CSS) and income tax withholdings.