The plenary of the National Assembly of Panama approved this morning the draft Law No. 524 amending an article of Law 23 of 2017 and Law 9 of 1994 on the recognition of the payment of the seniority premium of public servants.

Among the statement of reasons that the law set forth during its support, it establishes that "the right to pay the seniority premium is recognized to the permanent or transitory or contingent public servant or Administrative Career and other public careers and special laws, in application of the Article 5 of the Sole Text of Law 9 of June 20, 1994."

In its article 3, this initiative states that the right to the seniority bonus does not include the following public servants:

Public servants who were chosen by popular election;
Ministers and Vice Ministers of State;
Directors and Deputy Directors of Autonomous and Semiautonomous Entities;
Managers and Deputy Managers of public limited companies in which the State has a majority stake in the share capital;
Administrators and Deputy Administrators of State entities;
Those who retired after being appointed for fixed periods established by the Constitution or the Law;
The general or executive secretaries of each State Institution;
The secretarial and service personnel immediately assigned to public servants such as Ministers and Vice Ministers of State, Directors and Deputy Directors of Autonomous Entities, Managers and Deputy Managers of public limited companies in which the State has a majority participation in the share capital;
The personnel that was appointed by consulting under the protection of the law of public contracting and of the general budget of the State;
In general, all those public servants who are freely appointed and removed, in accordance with article 307 of the Political Constitution.

It also indicates that "the seniority premium that public servants receive will not be subject to any precautionary measures, nor to judicial seizure, nor will they be subject to social security deductions."

The regulations establish that the right to pay the seniority premium is not exclusive of any other right or benefit that public servants receive due to the separation or definitive termination of their employment relationship with the public administration described in special regulations or ladders.

Article 6 states that the heirs or beneficiaries of deceased public servants may process the payment of the seniority premium through the procedures described in Law 10 of January 22, 1998.

And it concludes by stating that it will be the responsibility of the Ministry of Economy and Finance together with all the institutions of the public sector to implement the recognition of the Seniority Premium for Public Servants.

Now the project will go to the Executive Branch to be sanctioned and become the law of the Republic.