Important Updates
Important Updates
May 21, 2025 | South AfricaSouth Africa: Extended Duration of Stay for Nationals of Lesotho
May 22, 2025 | United KingdomConstruction Management: Immigration White Paper: What it Means for UK Construction
May 22, 2025 | 🌐Minimum Salary Changes Announced
May 21, 2025 | United KingdomLBC: Youth Mobility is a Good Start - But Britain’s Immigration System Still Needs a Business Reset
May 21, 2025 | United StatesNegocios Now Names Associate Ana Gabriela Urizar to NYC-TriState Latinos 40 Under 40 Class of 2025
May 21, 2025 | South AfricaSouth Africa: Extended Duration of Stay for Nationals of Lesotho
May 22, 2025 | United KingdomConstruction Management: Immigration White Paper: What it Means for UK Construction
May 22, 2025 | 🌐Minimum Salary Changes Announced
May 21, 2025 | United KingdomLBC: Youth Mobility is a Good Start - But Britain’s Immigration System Still Needs a Business Reset
May 21, 2025 | United StatesNegocios Now Names Associate Ana Gabriela Urizar to NYC-TriState Latinos 40 Under 40 Class of 2025
May 21, 2025 | South AfricaSouth Africa: Extended Duration of Stay for Nationals of Lesotho
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcastsVideos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationHumanitarian and Evolving Legal Pathways (HELP)Vietnamese ImmigrationImmigration Matters: Your U.S. Compliance RoadmapFragomen Consulting EuropeAustralian Immigration: New Skills in Demand Visa
  • 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
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts
  • Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Humanitarian and Evolving Legal Pathways (HELP)
  • Vietnamese Immigration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Fragomen Consulting Europe
  • Australian Immigration: New Skills in Demand Visa

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
ContactCareersMedia
  • 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

Media mentions

Construction Management: Immigration White Paper: What it Means for UK Construction

Manager Kirsty Moore and Trainee Solicitor Christina Azntaridou discuss the UK government's immigration white paper's potential impact on construction hiring.

Learn more

Media mentions

LBC: Youth Mobility is a Good Start - But Britain’s Immigration System Still Needs a Business Reset

UK Managing Partner Nadine Goldfoot reflects on how the UK’s immigration system might adapt to better support business and short-term mobility.

Learn more

Awards

Negocios Now Names Associate Ana Gabriela Urizar to NYC-TriState Latinos 40 Under 40 Class of 2025

Negocios Now names Associate Ana Gabriela Urizar to its NYC-TriState Latinos 40 Under 40 Class of 2025 list.

Learn more

Video

Digital Nomad Visas Explained: How to Travel and Work Remotely

Learn the key requirements for digital nomad visas and find out which countries you can apply to as a remote worker or freelancer. 

Learn more

Media mentions

Financial Times Adviser: Relocating to the UK: An Immigration Lawyer’s Guide for US clients

Practice Leader Olga Nechita provides practical guidance on navigating UK immigration routes, settlement options and key considerations for applicants.

Learn more

Video

New DOLE Rules for Employing Foreign Nationals | #MobilityMinute

Senior Business Immigration Consultant Missy Mae Makil discusses the new DOLE rules for employing foreign nationals in the Philippines.

Learn more

Media mentions

Research Professional News: Immigration White Paper Offers Employers Costs without Clarity

UK Government Affairs Strategy Director Shuyeb Muquit examines how the UK’s new Immigration White Paper could affect talent mobility and growth in the life sciences sector.

Learn more

Media mentions

An Interview with Partner Abeer Al Husseini (الاقتصادية)

Partner Abeer Al Husseini discusses recent changes in Saudi Arabia's commercial regulations, their impact on international businesses and how they support Vision 2030.

Learn more

Awards

Fragomen and Talent Beyond Boundaries Win "Partnership with an International Charity" at Better Society 2025 Awards

Fragomen and Talent Beyond Boundaries received the “Partnership with an International Charity” award at the 10th Annual Better Society Awards.

Learn more

Blog post

Freelance Licence in the UAE: What You Need to Know in 2025

Corporate Services Director Elena Caron outlines essential information and updates regarding obtaining a freelance licence in the UAE, highlighting key requirements and benefits for freelancers.

Learn more

Media mentions

Global Mobility Lawyer: Immigration White Paper Sends Message That the UK is “Closed for Business”

Partner Rajiv Naik discussed how UK employers can prepare for immigration reforms by reviewing policies and aligning mobility with workforce planning.

Learn more

Blog post

A System Reset Presents Challenges and Opportunities: The UK’s Immigration White Paper in Focus

UK Government Affairs Strategy Director Shuyeb Muquit discusses how the UK’s Immigration White Paper presents both challenges and opportunities, highlighting the need for a system reset to address immigration issues effectively.

Learn more

Media mentions

Construction Management: Immigration White Paper: What it Means for UK Construction

Manager Kirsty Moore and Trainee Solicitor Christina Azntaridou discuss the UK government's immigration white paper's potential impact on construction hiring.

Learn more

Media mentions

LBC: Youth Mobility is a Good Start - But Britain’s Immigration System Still Needs a Business Reset

UK Managing Partner Nadine Goldfoot reflects on how the UK’s immigration system might adapt to better support business and short-term mobility.

Learn more

Awards

Negocios Now Names Associate Ana Gabriela Urizar to NYC-TriState Latinos 40 Under 40 Class of 2025

Negocios Now names Associate Ana Gabriela Urizar to its NYC-TriState Latinos 40 Under 40 Class of 2025 list.

Learn more

Video

Digital Nomad Visas Explained: How to Travel and Work Remotely

Learn the key requirements for digital nomad visas and find out which countries you can apply to as a remote worker or freelancer. 

Learn more

Media mentions

Financial Times Adviser: Relocating to the UK: An Immigration Lawyer’s Guide for US clients

Practice Leader Olga Nechita provides practical guidance on navigating UK immigration routes, settlement options and key considerations for applicants.

Learn more

Video

New DOLE Rules for Employing Foreign Nationals | #MobilityMinute

Senior Business Immigration Consultant Missy Mae Makil discusses the new DOLE rules for employing foreign nationals in the Philippines.

Learn more

Media mentions

Research Professional News: Immigration White Paper Offers Employers Costs without Clarity

UK Government Affairs Strategy Director Shuyeb Muquit examines how the UK’s new Immigration White Paper could affect talent mobility and growth in the life sciences sector.

Learn more

Media mentions

An Interview with Partner Abeer Al Husseini (الاقتصادية)

Partner Abeer Al Husseini discusses recent changes in Saudi Arabia's commercial regulations, their impact on international businesses and how they support Vision 2030.

Learn more

Awards

Fragomen and Talent Beyond Boundaries Win "Partnership with an International Charity" at Better Society 2025 Awards

Fragomen and Talent Beyond Boundaries received the “Partnership with an International Charity” award at the 10th Annual Better Society Awards.

Learn more

Blog post

Freelance Licence in the UAE: What You Need to Know in 2025

Corporate Services Director Elena Caron outlines essential information and updates regarding obtaining a freelance licence in the UAE, highlighting key requirements and benefits for freelancers.

Learn more

Media mentions

Global Mobility Lawyer: Immigration White Paper Sends Message That the UK is “Closed for Business”

Partner Rajiv Naik discussed how UK employers can prepare for immigration reforms by reviewing policies and aligning mobility with workforce planning.

Learn more

Blog post

A System Reset Presents Challenges and Opportunities: The UK’s Immigration White Paper in Focus

UK Government Affairs Strategy Director Shuyeb Muquit discusses how the UK’s Immigration White Paper presents both challenges and opportunities, highlighting the need for a system reset to address immigration issues effectively.

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
  • UK Regulatory Requirements

Our firm

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

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

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

© 2025 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.