Labor Severance Calculator

Calculate how much you are entitled to when ending a labor relationship in Panama

Gross Monthly Salary ($)

Unpaid Worked Days

Start Date

End Date

Vacation Days Taken

Reason for Termination

Was there notice?

Pending Salary: $0.00

Proportional Vacations: $0.00

Proportional 13th Month: $0.00

Seniority Premium: $0.00

Indemnity (Art. 225): $0.00

Notice (One month): $0.00

Total Net to Receive: $0.00

How does severance work in Panama?

Severance (liquidación) is the payment an employee receives upon contract termination. Components vary based on the reason for cessation.

You are entitled to 30 days for every 11 months worked (or 1 day for every 11 worked).

Calculated based on earnings since the last installment was paid.

Mandatory for permanent contracts: one week of salary for each year worked.

Applies in unjustified dismissals according to the Art. 225 Wage Table of the Labor Code.

Am I entitled to seniority premium if I resign?

Yes, in Panama, seniority premium is a vested right in permanent contracts, regardless of the reason for termination.

What is the time limit to pay severance?

The law does not set an exact time, but administratively it is usually paid within 10-15 business days.

How is notice calculated?

If dismissal is unjustified and no 30-day notice is given, the employer must pay one additional month of salary.