Panama Severance Calculator (Prima de Antigüedad and Indemnización)
Calculate your liquidación in Panama: prima de antigüedad of one week per year, indemnización of 3.4 weeks per year for unjust dismissal, vacation and décimo.
For indefinite contracts signed after 1995 (Ley 44). The indemnización uses the higher of the last month and the last six months' average; CSS and ISR on the final pay are not included.
What it does
When an indefinite contract ends in Panama for any reason, article 224 of the Labour Code gives a prima de antigüedad of one week of salary for each year worked. If the dismissal is unjustified, article 225 adds an indemnización of 3.4 weeks per year for the first 10 years and one week per year after that. The worker also receives proportional vacation (one month for every 11 months worked), the proportional décimo tercer mes and, if no notice was given, one month of salary.
How to use it
- Type the average salary and the time worked.
- Choose how the job ended and fill in vacation and décimo months.
- Read the total and each item.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How much for an unjustified dismissal after 12 years and 6 months on B/.1,500?
The weekly salary is B/.346.15. Prima: 12.5 weeks (B/.4,326.92); indemnización: 3.4 × 10 + 2.5 = 36.5 weeks (B/.12,634.62); with notice, 5 months of vacation and 2 of décimo: B/.19,393.36.
Do I get anything if I resign?
Yes, the prima de antigüedad: after 4 years on B/.1,500 that is B/.1,384.62, plus vacation and décimo owed.
How much vacation do I earn?
30 days for every 11 months of work, so each month is worth one eleventh of a salary.
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