PanamaTimes

Wednesday, Oct 28, 2026

Vice Minister of Labor: Companies hired foreigners to pay them below the minimum wage

Vice Minister of Labor: Companies hired foreigners to pay them below the minimum wage

The Ministry of Labor will continue to carry out the inspections to detect more irregularities in the companies.
The Vice Minister of Labor and Labor Development of Panama, Roger Tejada reported what were the main situations that were found in the inspection operations carried out in the more than 60 companies that were caught hiring foreign labor without a work permit.

"What we have found is that they do not have a work permit and wages are below the average, even of the minimum wage decrees that we have established ... This violates the rights of human beings and beyond those The human rights of the worker, there are the rights of the Panamanian worker or foreign residents with work permits, so we are calling on this," said Deputy Minister Tejada.

The vice minister asks companies to comply with the established labor standards and noted that their practices even prevent foreigners from requesting health services since they do not report them to the Social Security Fund (CSS).

Tejada also explained that on its website there is a platform where you can anonymously report mistreatment and labor abuse.

The businesses that made the most hiring of foreigners without permission, according to the findings of the inspections, are restaurants, retail companies, wholesalers and security agencies.

On the other hand, the deputy minister explained that more than 50 thousand hires have been reactivated in 2021, with less than 20% of foreign labor with permission.

The Mitradel said that 150 companies have been denied requests for suspension of contracts for not meeting requirements (not submitting the request on time, companies without economic impact) and before this they ask the suspended workers to come closer to verify their status.

Tejada said that in the month of October, companies will no longer be able to maintain the figure of suspension of contracts.
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