Building a successful benefits plan requires meeting critical employee needs, legal regulations, and market standards. When you’re establishing your company in Panama, you’ll want to strategically address each of these considerations to ensure you have a long-term, sustainable program.
Panama employee benefits plan
Your program offerings can be an asset for your company as you build a new team. Investing in competitive benefits will help your business stand out and attract more applications for your open positions.
A strong benefits program also supports an enhanced workplace environment for everyone. You can deepen employee engagement and encourage team members across departments to contribute their best work. And as you increase engagement and retention, you can cut down on recruiting and training costs.
To build a successful support system for your employees, consider including perks such as these in your plan:
- Performance bonuses
- Education allowance
- Childcare assistance allowance
- Transportation allowance
- Healthcare allowance
- Teleworking allowance
- Telephone allowance
Mandatory benefits in Panama
Alongside your supplemental benefits, you are legally obligated as an employer to provide the following:
- Public holiday leave
- Sick leave
- Maternity leave
- Annual leave
- Paternity leave
Designing Panama employee benefits plans
You can expect some elements of your benefits plan to vary based on your business region. Still, you can use a consistent approach to ensure your plan is competitive and compliant anywhere.
1. Examine your finances
You’ll need to finance your offerings sustainably, so consider the program scope and team size you can support. Examine your company’s available resources and set a budget that fits your current revenue and objectives.
2. Research the market
To develop a competitive program, you’ll want to understand what other businesses in the area are offering. See what other companies’ benefits schemes look like and determine whether you can match those offerings. You’ll also want to pay attention to any common offerings that might indicate a market standard.
3. Choose your offerings
Begin selecting benefits based on your research and budget. You can plan for the mandatory benefits first and then build in popular supplemental provisions as your budget allows. As you calculate costs, remember to factor in employee contributions and any administration or outsourcing fees you may have.
Average cost of benefits
Benefits costs can vary drastically between companies, depending on their specific goals and industry, so an average price might not reflect what you can expect to spend. The best way to develop your company’s benefits package is to focus on your unique requirements and employees’ needs.
You can develop a sustainable program by budgeting a set percentage of yearly income for funding. With this approach, you can easily scale your budget to current revenue and growth.
How to calculate employee benefits
Follow the labor laws when calculating expenses for the required benefits. Ensure you meet or exceed the legal standards.
As for fringe benefits, you can make calculations based on your market research. Set rates that will attract more candidates and best support your employees’ needs.
How are employee benefits taxed in Panama?
Monetary benefits typically fall under the taxable income category in the country.
Employee health benefits
The state-sponsored healthcare system provides basic coverage for all citizens of Panama.
How Globalization Partners can help scale your team in Panama
Globalization Partners’ global employment platform helps you build and scale an international team quickly and easily, ensuring all benefits offered to candidates are compliant and in line with local regulations. Learn more about our platform and request a proposal today.