Important Updates
Important Updates
May 12, 2026 | MozambiqueMozambique: Proof of Job Vacancy Advertisement Now Required Before Hiring Foreign Nationals
May 13, 2026 | AustriaAustria: New Labor Authority Requirements for Verifying Professional Experience
May 13, 2026 | PortugalPortugal: Issue on System for CPLP Residence Permits
May 13, 2026United States: June 2026 Visa Bulletin – Significant Retrogression for EB-2 India, Moderate Retrogression for EB-1 India, and Modest Advancement for EB-3 India and EB-3 China
May 12, 2026 | Czech RepublicCzech Republic: Registration and Deregistration Process Streamlined
May 12, 2026 | MozambiqueMozambique: Proof of Job Vacancy Advertisement Now Required Before Hiring Foreign Nationals
May 13, 2026 | AustriaAustria: New Labor Authority Requirements for Verifying Professional Experience
May 13, 2026 | PortugalPortugal: Issue on System for CPLP Residence Permits
May 13, 2026United States: June 2026 Visa Bulletin – Significant Retrogression for EB-2 India, Moderate Retrogression for EB-1 India, and Modest Advancement for EB-3 India and EB-3 China
May 12, 2026 | Czech RepublicCzech Republic: Registration and Deregistration Process Streamlined
May 12, 2026 | MozambiqueMozambique: Proof of Job Vacancy Advertisement Now Required Before Hiring Foreign Nationals
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
  • Insights

Panama: Significant Work Permit Reforms Implemented

March 14, 2023

insight-news-default

Country / Territory

  • PanamaPanama

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a Glance

  • The Ministry of Labor has published a decree which restructures Panama’s work permit categories and implements numerous other changes to work permit regulations.
  • Under the decree, there are overall stricter quota requirements for employers in Panama but relaxed quota requirements for short-term technicians; stricter work permit rules for SEM and EMMA visa holders; stricter documentary requirements for certain employers; and new work permit options for self-employed foreign nationals and students, among numerous other changes.
  • Though the decree is effective immediately, the Ministry has granted a grace period until March 31, 2023 so that foreign nationals who already hold a valid work permit in Panama or submit their work permit application on or before that date are unaffected by the changes.

The situation

The Ministry of Labor has published a decree which restructures Panama’s work permit categories and implements numerous other changes to work permit regulations. 

 

A closer look

Notable reforms include:

 

CHANGE DETAILS IMPACT
The decree restructures the work permit system, replacing 18 work permit categories with six categories (each with the corresponding sub-categories).

The new categories are:

  • Work permit equivalent to local workforce (including foreign nationals with 10 or more years of residence in Panama; spouses and parents of Panamanian nationals; diplomats; and residents under the Panama-Italy agreement)
  • Work permit for those hired under a quota requirement (including foreign nationals hired within the allowed 10% quota of a company’s general personnel; those hired as experts or technicians within the allowed 15% quota of a company’s specialized personnel; and those hired by companies with less than 10 workers, previously known as the Marrakesh Work Permit)
  • Work permit under special laws (including Multinational Companies (Sede de Empresas Multinacionales – SEM); Companies Providing Manufacturing Related Services (EMMA); Panama Pacific; and free zone companies)
  • Work permit under humanitarian protection (including refugees and stateless individuals)
  • Work permit under special conditions (including those based on certain bilateral agreements, professionals or students, and self-employed foreign nationals)
  • Temporary work permit (including international and performing artists, and specialized technicians)

Foreign nationals seeking to apply for a work permit in Panama as of April 1, 2023 must be eligible under one of the new six categories.

Foreign nationals with a work permit issued under the old system will not be subject to the new eligibility criteria upon renewal of their work permit or change of status to permanent residence.

A grace period applies until March 31, 2023 under which foreign nationals who submit their work permit application on or before that date are unaffected by the changes.

Notably, the category specifically for Permanent Residents to obtain work permits (originally implemented in 2019) has been eliminated. Instead, Permanent Residents will have to qualify and apply for a work permit under one of the six new categories.

Work Permit requirement for SEM and EMMA visa holders

According to the decree, SEM and EMMA visa holders now require both a visa and a corresponding work permit to legally work in Panama.

 

Under the current system, SEM and EMMA visa holders can work in Panama without an additional work permit (whereas foreign nationals under most visa categories require both a visa and a work permit).

Though it is uncertain why the Ministry of Labor included work permit restrictions for SEM companies in the decree, Fragomen believes the Ministry will clarify (and possibly reverse) its position soon.

 

Until then, affected foreign nationals will need to obtain a work permit, which can add up to 90 additional days to the entry process. Employers and foreign nationals should consult their immigration professional for case-specific advice.
Increased work permit processing times Under the new decree, the Ministry of Labor has increased its standard processing time for a work permit application to 40 business days up from 30 business days.

Employers and foreign nationals should account for longer processing times when planning assignments to Panama.

 

Due to current backlogs delays in processing, in practice the Ministry takes around 90 days to adjudicate work permit applications.  
Stricter documentary requirements for employers with more than 20 employees

Employers with more than 20 employees are now required to submit a notarized payroll certification issued by a certified public accountant in support of a work permit application. Previously, a notarized copy of the company’s payroll sufficed.

 

The payroll certification is prepared by the company (or an authorized third party) and certified by a public accountant and calculates the number of nationals and foreign employees in each immigration category.
This change may add administrative hurdles, costs, and may delay the document-gathering time.
Stricter work permit renewal timeframe Foreign nationals must submit work permit renewal applications at least 60 calendar days before the expiration of their current permit, up from 30 business days in advance of the expiration. Employers and foreign nationals should initiate the work permit renewal process sooner and should gather supporting documents well in advance of the expiration of the current work permit to remain under their current immigration status.
Stricter quota requirements for certain Special Condition applicants; but relaxed quota requirements for short-term foreign technicians and experts

Special Condition work permit applicants are no longer exempt from quota requirements (which means they must be hired within the allowed 10% or 15% quota, as applicable).

Foreign technicians and experts seeking to work in Panama for up to 90 days (renewable for up to 12 months) are no longer subject to quota requirements. Previously, foreign technicians could not comprise more than 15% of the company’s specialized workforce.

More foreign nationals (including those holding visas under specific bilateral agreements such as a Specific Country Visa, Foreign Professional visa, dependents under family reunion visas, and students) may face administrative hurdles to the work authorization process since they may be subject to a quota.

 

In order to comply with quotas, employers must include the company’s payroll documents (which can vary depending on the size of the workforce) showing the list of employees, job titles and enrollment in social security to the Ministry of Labor.

 

This change also means that companies in Panama will benefit from access to a larger talent pool of technicians and experts beyond the local labor market in Panama due to the elimination of quota requirements for these professions.
Work permit option for self-employed foreign nationals The new Special Conditions category allows foreign nationals who are self-employed to apply for a work permit to work in Panama. Previously, self-employed foreign nationals could not obtain work permits in Panama. Self-employed foreign nationals now have an immigration pathway in Panama.
Work permit option for students Student visa holders now have the option to apply for a work permit under the Special Conditions category. Previously, student visa holders were not allowed to work in Panama.   Foreign students will benefit from being able to work in Panama during their studies, making Panama a more attractive destination for students.
Notification requirements for certain short-term visits or work Foreign nationals must now have an attorney file a notification with the Ministry of Labor if they are entering Panama to perform activities at a managerial level for up to 15 days or if they are fulfilling a contract with a supplier and their activities are not remunerated in Panama. The implication of this change is not yet clear. It is expected that the Ministry will clarify details of the change and any implications soon.

The decree implements many other, less impactful changes. Employers and foreign nationals should work with their immigration and labor professionals for case-specific advice.

Background

According to the Ministry of Labor, the reforms aim to modernize the work permit system which had not been updated since 1999, to adapt it to Panama’s current market needs.

Though some of the reforms protect international companies that benefit from special regimes in the country to attract foreign direct investment, the reforms also include restrictions to protect local workers more broadly. 

Looking ahead

Though the new decree is effective immediately, the Ministry of Labor is also expected to publish an accompanying Procedures Manual soon in which details and policy changes would be published.

During the next few months while the Ministry of Labor implements the changes, foreign nationals and employers should expect delays with work permit application processing, increased scrutiny of applications, and discretionary application of the law.

Fragomen will monitor and report on any developments, including clarifications on SEM and EMMA work permit rules.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

Country / Territory

  • PanamaPanama

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Video

Understanding Immigration in Latin America: Residency Options and Citizenship Pathways

Latin America & the Caribbean Managing Partner Leonor Echeverria explores how Latin America’s evolving immigration landscape offers accessible and flexible residence pathways for foreign nationals, highlighting key visa options, regional trends and the growing role of digital modernization across the region.

Learn more

Podcast

Reality Check Pt. 2: Immigration Law in Pop Culture

Senior Associate Stephanie Weaver and Associate Julia Manacher continue their discussion on immigration law in popular culture, examining how television and media portray immigration processes and the realities behind common immigration storylines.

Learn more

Media mentions

Bloomberg: Trump Wants to Make H-1B Workers More Expensive for US Employers

Partner Kevin Miner discusses how proposed H-1B salary threshold increases may raise employer costs and influence hiring strategies for specialized talent across industries.

Learn more

Video

Portugal Extends Citizenship Timeline | #MobilityMinute

In this Mobility Minute, Manager Pierangelo D’Errico discusses Portugal’s newly approved nationality law changes and the potential impact on Golden Visa applicants and other foreign residents.

Learn more

Media mentions

Global Mobility Lawyer: AI Use in UK Immigration Tribunals Prompts Scrutiny Over Decision-Making Process

Partner Rajiv Naik highlights the importance of transparency, clear guidance and human oversight as AI use expands in UK immigration tribunals.

Learn more

Video

Europe’s Entry and Exit System (EES): What Travelers Need to Know

Senior Associate Tuğba Özyakup outlines how Europe’s Entry and Exit System (EES) introduces digital tracking of non-EU short-stay travel across the Schengen Area, requiring more proactive planning, accurate record-keeping and awareness of increased border processing times to avoid delays and overstay risks.

Learn more

Fragomen news

2026年4月 アメリカ移民法ダイジェストLearn more

Media mentions

Silicon Valley Business Journal: Trump’s H-1B Overhaul Favors Deep-Pocketed Bay Area Firms Over Indian Staffing Agencies

Partner Chad Ellsworth discusses recent H-1B lottery changes, including salary-weighted selection and filing restrictions, and how they are influencing employer selection outcomes and hiring approaches for foreign talent.

Learn more

Work authorization

EB-5 I-526E Request For Evidence Trends: Loans and Property Sales

Senior Associate Tracey Kimberly explores the recent increase in RFEs for EB‑5 I‑526E petitions, highlighting heightened USCIS scrutiny of source-of-funds documentation—particularly in cases involving loan-based investments and property sale proceeds.

Learn more

Work authorization

The Nordic Immigration Paradox: Why Digital Efficiency Still Creates Compliance Risk

Director Audrey Morew examines how Nordic immigration systems, while increasingly digital and efficient, can embed compliance risk earlier in the process—placing greater responsibility on employers to ensure data accuracy, internal controls and long‑term compliance from the outset.

Learn more

Work authorization

Canada FIFA World Cup 2026 Visa & Entry Requirements

Partner Rick Lamanna outlines Canada’s entry requirements for the FIFA World Cup 2026, highlighting visa and eTA processes, border expectations and special measures for participants to help travelers prepare for seamless entry during the tournament.

Learn more

Media mentions

The PIE: Relief for Some OPT Applicants in “Immigration Limbo”

Partners Aaron Blumberg and Daniel Pierce discuss how a US pause on processing certain work permit applications including OPT creates uncertainty for international students and employers while early court rulings offer limited case-specific relief.

Learn more

Video

Understanding Immigration in Latin America: Residency Options and Citizenship Pathways

Latin America & the Caribbean Managing Partner Leonor Echeverria explores how Latin America’s evolving immigration landscape offers accessible and flexible residence pathways for foreign nationals, highlighting key visa options, regional trends and the growing role of digital modernization across the region.

Learn more

Podcast

Reality Check Pt. 2: Immigration Law in Pop Culture

Senior Associate Stephanie Weaver and Associate Julia Manacher continue their discussion on immigration law in popular culture, examining how television and media portray immigration processes and the realities behind common immigration storylines.

Learn more

Media mentions

Bloomberg: Trump Wants to Make H-1B Workers More Expensive for US Employers

Partner Kevin Miner discusses how proposed H-1B salary threshold increases may raise employer costs and influence hiring strategies for specialized talent across industries.

Learn more

Video

Portugal Extends Citizenship Timeline | #MobilityMinute

In this Mobility Minute, Manager Pierangelo D’Errico discusses Portugal’s newly approved nationality law changes and the potential impact on Golden Visa applicants and other foreign residents.

Learn more

Media mentions

Global Mobility Lawyer: AI Use in UK Immigration Tribunals Prompts Scrutiny Over Decision-Making Process

Partner Rajiv Naik highlights the importance of transparency, clear guidance and human oversight as AI use expands in UK immigration tribunals.

Learn more

Video

Europe’s Entry and Exit System (EES): What Travelers Need to Know

Senior Associate Tuğba Özyakup outlines how Europe’s Entry and Exit System (EES) introduces digital tracking of non-EU short-stay travel across the Schengen Area, requiring more proactive planning, accurate record-keeping and awareness of increased border processing times to avoid delays and overstay risks.

Learn more

Fragomen news

2026年4月 アメリカ移民法ダイジェストLearn more

Media mentions

Silicon Valley Business Journal: Trump’s H-1B Overhaul Favors Deep-Pocketed Bay Area Firms Over Indian Staffing Agencies

Partner Chad Ellsworth discusses recent H-1B lottery changes, including salary-weighted selection and filing restrictions, and how they are influencing employer selection outcomes and hiring approaches for foreign talent.

Learn more

Work authorization

EB-5 I-526E Request For Evidence Trends: Loans and Property Sales

Senior Associate Tracey Kimberly explores the recent increase in RFEs for EB‑5 I‑526E petitions, highlighting heightened USCIS scrutiny of source-of-funds documentation—particularly in cases involving loan-based investments and property sale proceeds.

Learn more

Work authorization

The Nordic Immigration Paradox: Why Digital Efficiency Still Creates Compliance Risk

Director Audrey Morew examines how Nordic immigration systems, while increasingly digital and efficient, can embed compliance risk earlier in the process—placing greater responsibility on employers to ensure data accuracy, internal controls and long‑term compliance from the outset.

Learn more

Work authorization

Canada FIFA World Cup 2026 Visa & Entry Requirements

Partner Rick Lamanna outlines Canada’s entry requirements for the FIFA World Cup 2026, highlighting visa and eTA processes, border expectations and special measures for participants to help travelers prepare for seamless entry during the tournament.

Learn more

Media mentions

The PIE: Relief for Some OPT Applicants in “Immigration Limbo”

Partners Aaron Blumberg and Daniel Pierce discuss how a US pause on processing certain work permit applications including OPT creates uncertainty for international students and employers while early court rulings offer limited case-specific relief.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.