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In Panama, employees receive three times a year the payment of the Thirteenth Month, which is a special mandatory bonus that corresponds to every worker as an additional right and must be paid by every employer, as established by Cabinet Decree No. 221, of November 18th, 1971.
The Thirteenth Month must be paid in three installments on the following dates: April 15th, August 15th and December 15th every year. The amount to be paid shall be calculated in the ratio of 1 day’s salary for every 11 days or fraction of actual or effective work, whether continuous or not, also considering as days worked those in which the worker was absent due to illness, occupational accident, maternity leave and vacations, duly verified. Additionally, 7.25% of social security and income tax will be deducted, where applicable.
Despite being a recurring payment, there are many doubts related to this issue. For this reason, the Laboremia team decided to create the guides "All about the Thirteenth Month", both for the worker and the employer. The main content of these didactic documents is:
- Definition of Thirteenth Month
- 5 steps to calculate it
- Calculation examples
- Frequently asked questions
Additionally, readers will also receive a calculator that we designed in order to have the possibility of including their data and obtain not only the calculation of the payment corresponding to the thirteenth month but also a detailed breakdown of the deductions corresponding to social security and income tax.
If you wish to download for free the guides "All about the Thirteenth Month" for both the employer or the worker and the calculator, just click here: https://blog.laboremia.com/guia-calculadora-decimo/descargar
