In addition to labor and social security reforms, another key issue that has garnered attention in Panama is labor migration. In 2023, the Panamanian government issued Executive Decree No. 6, which regulates the categories of work permits for migrants, distinguishing between investors and foreign workers from friendly nations. This legislation aims to provide a clear and controlled framework for the foreign workforce, facilitating the integration of migrants into the formal labor market.
Panama’s approach to labor migration seeks to ensure that migrants can access formal employment, while respecting their rights and contributing to the country’s economic development. At the same time, supervisory and protection mechanisms have been established to prevent labor exploitation and promote the inclusion of migrants in Panamanian society.
General Conclusions
The reforms currently under discussion in the National Assembly, both regarding the Social Security Fund and the Ministry of Labor, are fundamental steps toward ensuring a fairer, more inclusive, and sustainable Panama. By modernizing the labor market, protecting workers’ rights, and improving social security, the country is progressing toward a future where equal opportunities and a better quality of life are accessible to all citizens.
The implementation of these reforms will be key to ensuring Panama’s sustained economic growth and its ability to face future challenges. The success of these initiatives will depend on the commitment of the government, as well as the public and private sectors, to ensure that these changes translate into real improvements for workers and contribute to the creation of a more efficient and accessible social security system for all.
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Article written originally for Andersen Newsletter, by:
Aldemara Jaén Arias
Senior Associate
Panama
