Celia douglas
The President of the Republic, Laurentino Cortizo Cohen, signed the Executive Decree through which the minimum wage is adjusted in those activities that have presented some level of recovery in 2021 compared to 2019.
The new minimum wages will be applied in activities such as agriculture, fishing and livestock; activities of social, financial and private health services and domestic service, among others.
The Minister of Labor and Labor Development, Doris Zapata Acevedo, said that for the adjustment of the minimum wage, economic activities that have presented some level of recovery in 2021 compared to 2019 were considered. Gross by economic activity; suppressing 2020, which was an atypical year, which cannot be taken as a reference to the economic situation that occurs worldwide.
This decision meets criteria of social justice, adjusted to the reality of the country, considering the arguments presented by workers and employers, in order to preserve jobs and continue with the economic reactivation in the midst of the health crisis.
It is worth mentioning that Panama, unlike other countries, maintains the negotiation and validity of collective agreements and conventions that allow reaching solutions, commitments and benefits between the parties.
This new decree complies with the agreement agreed on December 31, 2019 between the Union of Workers of the Banana, Agricultural and Related Companies Industry (SITRAIBANA), the Industrial Union of Workers of Independent Banana Producers (SITRAPBI) and the National government; that establishes a 13% increase in the salary of banana workers.
From the Ministry of Labor and Labor Development, we will continue to strengthen the dialogue scenarios that lead us to a consensus in view of the next revision of the minimum wage that will be carried out in 2023.
The new minimum wage adjustment will take effect on January 16, 2022.
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