Panama’s Massive University March for National Sovereignty

Law No. 462 of March 18, 2025 – Key Reforms to the Social Security Fund (CSS) of Panama explained at the ending of this news story.

Thousands of students, professors, and administrators from the University of Panama marched this Tuesday, May 6, for “university autonomy and national sovereignty.” Dressed in white and carrying protest banners, they walked from the Faculty of Humanities along the Transístmica highway to Avenida de los Mártires. The atmosphere was festive, with music students playing their instruments as if it were a carnival, and popular songs like Colonia Americana… No, Patria, and drums blaring from loudspeakers. The chants ranged from the traditional “no fight, no victory,” to the homophobic “gringo faggots,” to a catchy “Hey, Mulino, take a picture. So you don’t say we’re just a bunch of punks.”

In March, President José Raúl Mulino attempted to minimize opposition to mining in Panama by stating during one of his weekly press conferences that “only four cats” were opposed. Since then, the phrase has inspired slogans, memes, banners, and chants. Panamanians, taking to the streets to protest, remind their president that the cat has already given birth, and there are more than four of them.  For university students, it’s a matter of respect. They’re tired of feeling the sting of tear gas as they leave their classrooms, scared of seeing riot squads surrounding their university, exhausted by what they consider repression, and offended by hearing the president speak about them on television.  “We’re tired of being called a haven for terrorists,” declared Yariuska, a student at the University of Panama, during the demonstration. “And we’re against the Social Security law. It’s not fair to work so hard to retire with so little.”

Student movements are a fundamental part of our nation’s history. In 1958, a group of university students planted 75 flags at different points in the Canal Zone, then a U.S. territory within Panama.  “The university is a space for debate, a space where all ideological and political currents have always coexisted. We have had repressive governments and states, and we have known how to confront them. Like in this moment we are living through, our worst, where the president of the Republic calls us a den of criminals, terrorists, and delinquents,” noted Professor Gilberto Marulanda, who serves as Student Ombudsman. “Historically, there have been demonstrations at the University of Panama. All politicians applaud when they are in opposition. When they are in government, they repress,” he lamented.

The university community, from the cafeteria workers to the administrators, were present and raised their voices. As they walked through the streets of Perejil toward Plaza 5 de Mayo, Esther, a local hairstylist, watched from the doorway of her barbershop with a smile on her face, her tanned skin resting against a wall, her clear gaze fixed on the white shirts and Panamanian flags parading in front of her. “When I finish cooking lunch, I’m going to join in,” she said. “Mulino has to do something to increase employment.”  Everyone had their own reason for being present. Teachers reminded their students of the generational struggles for national sovereignty and questioned the recently signed agreements between Panama and the United States, which allow for the presence of military troops on the isthmus and the construction of defense sites on sites where military bases were located. Among the young people, one of the common threads was the categorical rejection of the mining project, which President Mulino proposed reviving without going through the National Assembly.

The Social Security law was also present, but there were uncertainties and confusing information on the subject. The student advocate preferred not to comment on the issue; a humanities professor described it as complex and questioned why the retirement age is being raised, even though the law doesn’t. No one interviewed could pinpoint the exact harmful aspects of the law compared to the previous one, but the general feeling was that it ultimately resulted in meager pensions for many.  The university students’ demonstration reflects one of many choruses of voices protesting across the country. The protest is against the Social Security Law, yes, but it’s also the voice of a people who feel ignored, disrespected, and who want to make it clear that they will not be silenced or repressed.  The root of the discontent hasn’t been addressed. And the cat keeps giving birth.

We’re tired of the president calling us terrorists and criminals. And we’re against the CSS Law. It’s not fair to work so hard to retire with so little.”

Suntracs and teachers are keeping up the pressure.  Protests against Social Security Law 462 continue.  Nationwide demonstrations and protests against Law 462, the reopening of the mine, and the agreements with the United States continued on Tuesday, May 6. Protests are underway in the province of Chiriquí, and there were clashes with riot police. Teachers began the national strike on April 23, the Single Union of Construction and Similar Workers (Suntracs) strike began on April 28, and several medical unions began on May 5. Labor Minister Jackeline Muñoz has stated that the construction workers’ strike is illegitimate because the consultation process was not followed. “Every strike is legitimate; it is protected by law, it is protected by the Constitution,” countered Saúl Méndez, secretary general of Suntracs. “That minister is a savage. She has violated the Constitution, the law, and international conventions. Not only that, she has committed a crime, because she has attempted to direct Suntracs funds to the Ministry of Labor, violating the Constitution, the law, and ILO Conventions 87 and 98. That is why we demand her dismissal or resignation.”  Education Minister Lucy Molinar called on teachers to return to the classroom. “Today we’re telling teachers, come back, and nothing more will be said,” she insisted.  She said that the teachers’ demands are not a matter for the Ministry of Education.

Law No. 462 of March 18, 2025 – Key Reforms to the Social Security Fund (CSS) of Panama

Law No. 462 of March 18, 2025, introduces several significant reforms to Panama’s Social Security Fund (CSS). These reforms aim to rescue the system from insolvency, ensure the sustainability of the Disability, Old Age, and Death Regime, and improve the quality of healthcare service management.

From this extensive new law, the following key points can be highlighted:

No Increase in Retirement Age: This reform does not include the previously proposed increase in the retirement age. However, a review is scheduled within six years. Until then, the retirement age remains 57 years for women and 62 years for men.

Unified Solidarity Capitalization System: The law establishes a system financed through a Unified Solidarity Fund, structured into two components:

• Non-Contributory Solidarity Component: Grants a minimum pension of B/. 144.00 to individuals who were unable to make sufficient contributions during their working life or a solidarity benefit pension, the amount of which depends on the insured’s contributions.
• Contributory Solidarity Capitalization Component: Provides a Guaranteed Solidarity Pension, based on the accumulated contributions in the individual accounts of affiliates, according to their contributions.

Increase in Employer Contributions: A gradual increase in employer contributions is established as follows:

• 13.25% upon the law’s entry into force until February 28, 2027.
• 14.25% from March 1, 2027, until February 28, 2029.
• 15.25% from March 1, 2029, onwards.

Elimination of Old Age Compensation: As of 2036, the Social Security Fund will no longer grant old-age compensation. Instead, it will calculate a retirement pension based on the Unified Capitalization System with Solidarity Guarantee.

Increase in Fines for Non-Compliance:

It is important to note that the initial increase of 13.25% must be applied as of the effective date of the law,  which has already taken place on March 18, 2025. However, in a statement issued on March 21st, the Social Security Fund indicated that this first increase will apply starting in April, corresponding to the payroll to be paid in May. This is subject to the implementation of the update in the Economic Benefit System (SIPE), so that companies can see the increase in the employers contribution rate when processing payroll payments. 

Other additional key provisions to take note of:

• Extension of Joint and Several Liability for Employer Substitution: The liability of the substituted employer in cases of employer substitution is extended to two years.
• Mandatory CSS Affiliation for Independent Professionals: Independent professionals are now required to register with CSS, with a contribution rate of 9.36% of taxable income to cover Disability, Old Age, and Death (IVM) benefits. Additionally, an 8.5% contribution is established for health and maternity risks (the latter is voluntary).
• Automatic Enrollment through Links with the Ministry of Labor: This system must be implemented within 24 months following the law’s entry into force.

For more information, please contact our Labor & Employment Law team: usl.laboral@morimor.com

Anahí Quintero: Repeal of Law 462, which Violates Access to a Decent Retirement, in Panama.  Auto Dubbed into English