Décimo Tercer Mes Payments
The mandatory 13th-month payment equals one month's salary and is paid in three equal instalments each year.
Finn tracks your Panama deadlines
AccountsOS handles tax, filing deadlines and invoicing for Panama businesses, in plain English. Ask Finn about yours, no signup needed.
Who this applies to
- All employers with employees in Panama
- Companies planning their first hire
- Businesses with seasonal or part-year staff
What to file
No filing is set out in Finn's rules. The employer pays each instalment to the employee on the due date.
How to file
Through payroll. The instalments are a statutory payment and not a discretionary Christmas bonus.
Payment due
One third of a month's salary per instalment, on 15 April (covering mid-December to mid-April), 15 August (covering mid-April to mid-August) and 15 December (covering mid-August to mid-December).
Penalties for missing this deadline
Finn's Panama rules do not hold a penalty figure. The payment is a statutory entitlement, so non-payment is a labour-law issue. Confirm the position with the Ministry of Labour (MITRADEL) or an adviser.
Filing checklist
- Put the three dates in the cash-flow forecast
- Accrue the cost each month
- Calculate each instalment from salary records
- Pay on the due date
- Keep payment records
Documents you'll need
- Payroll records
- Employment contracts
- Salary history for the period
- Payment evidence
Common mistakes to avoid
- Treating the payment as optional
- Paying once at Christmas instead of three times a year
- Not budgeting for April and August
- Confusing it with a discretionary bonus
Never miss a Panama deadline
AccountsOS tracks every Dirección General de Ingresos (DGI), Ministry of Economy and Finance (MEF) and Registro Público de Panamá deadline and reminds you weeks ahead.
Try Free