8.5% hike in minimum wage approved

AN 8.5 PERCENT  increase in the minimum wage for most sectors in Panama   will kick in January 1,  says Minister of Labor Luis Ernesto Carles.

The increase does not include employees of small businesses, banana farms and domestic service. Those employees will have their increase set by the Executive Branch.

The increase will take effect Jan. 1.

It was approved by a negotiating committee consisting of representatives of workers and employers.

The wage only applies to private businesses, however, the National Minimum Wage Commission recommended to the Executive Branch to implement a $500 monthly minimum wage for employees of municipalities, governments and community boards.

The current minimum wage is $488 for rural workers and $624 for workers in urban areas.