Panama offers compelling opportunities for international employers, with an economy that grew 7.3 percent in 2023 and a services sector accounting for nearly 80 percent of GDP. The country's labor force of 2,094,238 workers includes high demand for specialized roles, particularly as wholesale and retail trade employs 19.2 percent of the workforce and shortages persist in technology, logistics, and English-language sectors.
An Employer of Record (EOR) service acts as the legal employer for your Panama-based team, handling payroll, benefits, and tax compliance without requiring you to establish a local entity. Panama's regulatory environment demands precise adherence to the Labor Code's mandatory 30 days of vacation per eleven months of work, 13th month salary payments distributed across three annual installments, and employer social security contributions of 12.25 percent. Companies must also navigate foreign workforce restrictions limiting non-Panamanian employees to 10 percent of total staff under standard rules. This guide compares 10 EOR providers that manage these obligations while enabling rapid market entry.
Why Use an Employer of Record in Panama?
Panama attracts substantial foreign investment, with FDI inflows reaching $2.9 billion in 2022, concentrated in logistics and infrastructure sectors. The country maintains investment-grade credit ratings with a Baa3 stable outlook, reflecting economic stability. Panama's talent pool includes a tertiary education enrollment rate of 48 percent, and the Ciudad del Saber innovation district hosts over 200 organizations, creating a concentration of technical professionals. Strategic trade frameworks including the US-Panama Trade Promotion Agreement and EU-Central America Association Agreement position Panama as a regional commercial hub. An EOR allows companies to access this workforce without navigating entity registration, work permit quotas, or the mandatory 1.50 percent educational insurance contributions independently.
Our Picks for the 10 Best EOR Companies in Panama
Borderless AI
Borderless AI is an AI-powered Employer of Record platform that enables companies to hire, onboard, and manage employees in Panama and 170+ other countries without establishing a local entity. The platform combines advanced automation technology with comprehensive compliance expertise to streamline global hiring operations. Borderless AI owns legal entities in Panama, ensuring direct control over employment processes and regulatory adherence.
Why Use Borderless AI for EOR in Panama
Borderless AI delivers exceptional value for companies hiring in Panama through its AI-powered contract generation that adapts to Panama's specific labour regulations and its industry-leading 1-2 day onboarding speed. The platform's direct entity ownership in Panama ensures full compliance with local employment laws while eliminating the delays typical of third-party provider models.
Key Benefits and Features
- 5-day global payroll processing with multi-currency support in 90+ currencies
- Real-time compliance monitoring across Panama's labour laws and tax regulations
- Mobile app for employee self-service including expense management and paystub access
- Direct entity ownership ensuring complete control over employment processes
- Price match guarantee providing competitive pricing assurance
Price: $579/employee/month
Country Coverage: 170+ countries
G2 Rating: 4.9/5
Free Trial: Demo
Legal & Compliance: Borderless AI operates with a full entity-ownership model globally, providing comprehensive coverage of Panama local laws. The platform ensures complete adherence to Panamanian labour codes, tax requirements, and social security obligations through direct legal presence.
Onboarding Speed: 1-2 days
Platform Experience: Borderless AI offers a robust SaaS platform with an intuitive interface, mobile application for iOS and Android, and extensive self-service capabilities. The platform features AI-powered tools including HRGPT for instant HR support and automated contract generation tailored to local requirements.
Customer Support: 24/7 in-house support team based in North America with dedicated account managers for every client. Support includes compliance professionals and payments experts who serve as an extension of your team.
ProsCons
Skuad
Skuad provides comprehensive EOR services in Panama, covering the full employment lifecycle from recruitment and visa processing to payroll and tax administration. The platform offers a tech-enriched HR solution designed to simplify international workforce management. Skuad positions itself as a cost-effective option for companies seeking to establish a presence in Panama.
Why Use Skuad for EOR in Panama
Skuad offers particularly strong value for Panama hiring with its competitive $199 per employee monthly rate and comprehensive local expertise covering Panamanian labour contracts, payroll taxation, and regulatory compliance. The platform's recruitment support helps companies identify and onboard qualified Panamanian talent efficiently while managing visa requirements for foreign workers.
Key Benefits and Features
- Full EOR coverage in Panama including recruitment assistance
- Visa processing and work permit management
- Comprehensive payroll and tax administration
- Tech-enriched HR platform with global dashboard
Price: $199/employee/month
Country Coverage: 160+ countries
G2 Rating: 4.6/5
Free Trial: Demo only
Legal & Compliance: Skuad covers local labour contracts, payroll processing, and taxation requirements specific to Panama. The platform ensures compliance with Panamanian employment regulations and statutory obligations.
Onboarding Speed: 2-3 days
Platform Experience: Skuad operates a platform-led model featuring a global dashboard for managing international teams. The technology enables centralized oversight of payroll, compliance, and HR functions across multiple jurisdictions.
Customer Support: Skuad provides access to local country specialists through their provider network, offering expertise on Panama-specific employment matters and regional HR practices.
ProsCons
Multiplier
Multiplier delivers end-to-end EOR services for Panama, encompassing contract generation, benefits administration, payroll processing, and taxation management. The platform emphasizes regulatory expertise and offers a centralized dashboard for managing global HR and payroll operations. Multiplier provides comprehensive support for companies expanding into the Panamanian market.
Why Use Multiplier for EOR in Panama
Multiplier excels in Panama operations through its specialized focus on local labour law, tax regulations, and social contribution requirements. The platform's rapid 1-3 day onboarding combined with deep regulatory expertise makes it particularly suitable for companies requiring strong compliance assurance in Panama's employment landscape.
Key Benefits and Features
- End-to-end EOR services including contract generation
- Comprehensive benefits administration for Panama
- Integrated payroll and taxation management
- Central dashboard for global HR operations
Price: $400/employee/month
Country Coverage: 150+ countries
G2 Rating: 4.7/5
Free Trial: Demo
Legal & Compliance: Multiplier emphasizes strong regulatory expertise for Panama, covering local labour law compliance, tax administration, and social contribution management. The platform maintains current knowledge of Panama's employment regulations.
Onboarding Speed: 1-3 days
Platform Experience: Multiplier offers a comprehensive platform for global HR and payroll management featuring a central dashboard that provides visibility across all employment jurisdictions and streamlined workflows for international team management.
Customer Support: Multiplier provides support through a global team supplemented with local country insights, ensuring access to both broad international expertise and Panama-specific employment knowledge.
ProsCons
Safeguard Global
Safeguard Global offers combined EOR and PEO solutions enabling companies to hire in Panama without entity setup. The platform provides detailed country guides on Panama employment regulations and emphasizes service-focused delivery with platform support. Safeguard Global brings extensive experience to managing Panama employment relationships.
Why Use Safeguard Global for EOR in Panama
Safeguard Global provides exceptional Panama-specific knowledge including detailed guidance on the Panama labour code, contract requirements, overtime regulations, and mandatory 13th month bonus payments. The platform's combination of HR experts and Panama local specialists ensures comprehensive support for navigating the country's unique employment landscape.
Key Benefits and Features
- Combined EOR and PEO solution flexibility
- Comprehensive Panama country employment guide
- Entity-free hiring capabilities
- Extensive coverage in 170+ countries
Price: From $499/employee/month
Country Coverage: 170+
G2 Rating: 4.3/5
Free Trial: Demo
Legal & Compliance: Safeguard Global provides comprehensive coverage of the Panama labour code, contract drafting, overtime regulations, and statutory bonus payments including the mandatory 13th month payment. The platform maintains expertise in Panama's employment framework.
Onboarding Speed: 1-2 weeks
Platform Experience: Safeguard Global operates a service-focused model supported by platform technology, emphasizing hands-on assistance and expert guidance complemented by digital tools for workflow management.
Customer Support: Safeguard Global provides access to HR experts and Panama local specialists who offer in-depth knowledge of regional employment practices, regulatory requirements, and cultural considerations.
ProsCons
Globalization Partners (G-P)
Why Use Globalization Partners for EOR in Panama
Globalization Partners provides full EOR services for Panama including contract drafting, payroll management, benefits administration, and termination support. The platform operates an enterprise-grade model combining technology with comprehensive service delivery. G-P offers one of the largest global footprints with coverage in 185+ countries.
Key Benefits and Features
- Full EOR services including contract drafting
- Comprehensive payroll and benefits management
- Termination support and offboarding assistance
- Extensive global coverage in 185+ countries
Price: $699/employee/month
Country Coverage: 185+ countries
G2 Rating: 4.5/5
Free Trial: Demo
Legal & Compliance: G-P provides Panama employment contract templates and comprehensive labour law guidance, ensuring compliance with local employment regulations and statutory requirements throughout the employment relationship.
Onboarding Speed: 3-5 days
Platform Experience: Globalization Partners operates a hybrid platform and enterprise service model, combining technology infrastructure with high-touch service delivery designed for organizations requiring comprehensive support and enterprise-grade solutions.
Customer Support: G-P delivers enterprise-grade customer support with global coverage, providing dedicated resources and expert guidance for organizations managing complex international workforces across multiple jurisdictions.
ProsCons
Acvian
Why Use Acvian for EOR in Panama
Acvian provides EOR and payroll services with a distinctive cost-calculator tool for Panama payroll and employer taxes. The platform enables companies to estimate employment costs accurately before committing to hiring. Acvian offers coverage across 180+ countries with a focus on transparency in employment cost structures.
Key Benefits and Features
- Cost-calculator tool for Panama payroll estimation
- Employer tax and social security administration
- EOR and payroll service integration
- Coverage across 180+ countries
Price: Custom pricing
Country Coverage: 180+ countries
G2 Rating: 4.8/5
Free Trial: No
Legal & Compliance: Acvian handles employer taxes, social security contributions, and local regulatory requirements for Panama, ensuring statutory compliance with Panamanian employment obligations and tax regulations.
Onboarding Speed: 1-2 weeks
Platform Experience: Acvian's platform includes a payroll estimator tool with moderate user experience, providing functionality for cost calculation and employment management with practical but less polished interface design.
Customer Support: Acvian provides support contact via specialists with less detailed public information available regarding support structure, response times, and service level agreements.
ProsCons
Bradford Jacobs
Why Use Bradford Jacobs for EOR in Panama
Bradford Jacobs offers global PEO and EOR services enabling entity-free hiring in Panama. The platform provides comprehensive employment services including contract management, payroll processing, tax administration, and regulatory compliance. Bradford Jacobs operates a service-led model with a global multi-country HR network.
Key Benefits and Features
- Global PEO and EOR service flexibility
- Entity-free hiring in Panama
- Complete payroll and tax administration
- Social security registration and management
Price: Custom
Country Coverage: 120+
G2 Rating: Not listed
Free Trial: Demo
Legal & Compliance: Bradford Jacobs operates as the outsourced employer, handling registration requirements, social security administration, and payroll compliance for Panama employment relationships in accordance with local regulations.
Onboarding Speed: 1-2 weeks
Platform Experience: Bradford Jacobs follows a service-led model with limited public information about platform user experience, emphasizing hands-on service delivery over technology-driven self-service capabilities.
Customer Support: Bradford Jacobs provides support through a global multi-country HR network offering Panama coverage with access to regional employment expertise and international human resources knowledge.
ProsCons
NNRoad
Why Use NNRoad for EOR in Panama
NNRoad enables companies to scale hiring in Panama without establishing a local entity through comprehensive compliance and administrative outsourcing. The platform manages Panama labour regulations and employer obligations, providing service-oriented support. NNRoad operates across 160+ countries with a global network of local specialists.
Key Benefits and Features
- Scale hiring in Panama without entity establishment
- Comprehensive compliance and administrative outsourcing
- Global network with local specialists
- Coverage across 160+ countries
Price: Custom - typically charges a percentage of the total labor cost, specifically 10%
Country Coverage: 160+ countries
G2 Rating: Not listed
Free Trial: No
Legal & Compliance: NNRoad manages Panama labour regulations and employer obligations, ensuring compliance with local employment laws and statutory requirements throughout the employment relationship.
Onboarding Speed: Up to a week
Platform Experience: NNRoad operates a service outward model with less technology focus in public-facing materials, emphasizing personal service delivery over platform-driven self-service capabilities.
Customer Support: NNRoad provides support through a global network with access to local specialists offering regional expertise and knowledge of Panama-specific employment practices and regulations.
ProsCons
Serviap Group
Why Use Serviap Group for EOR in Panama
Serviap Group provides EOR services covering recruitment, payroll, benefits, and compliance in Panama. The platform specializes in Latin American markets including Panama and operates a service-centered model. Serviap Group offers regional expertise with deep knowledge of Latin American employment landscapes and cultural nuances.
Key Benefits and Features
- EOR model covering recruitment through compliance
- Specialized Latin America regional focus
- Full local obligations management for Panama
- Service-centered delivery approach
Price: From $399/employee/month
Country Coverage: Primarily Latin America, including El Salvador
G2 Rating: Not listed
Free Trial: Demo available
Legal & Compliance: Serviap Group manages full local obligations including payroll processing, benefits administration, and contract term compliance in Panama, ensuring adherence to Panamanian employment regulations and statutory requirements.
Onboarding Speed: 1-2 weeks
Platform Experience: Serviap Group operates a service-centered model with less emphasis on platform technology, focusing on personal service delivery and regional expertise over self-service digital capabilities.
Customer Support: Serviap Group provides local Latin American specialist service with deep regional knowledge, cultural understanding, and expertise in Panama-specific employment practices and business customs.
ProsCons
Playroll
Why Use Playroll for EOR in Panama
Playroll offers combined EOR and payroll services for Panama with clear guidance on cost structures and employment expenses. The platform manages payroll taxes, contract compliance, and staff hiring and management. Playroll provides a mix of platform technology and service support with tools including a cost estimator for planning purposes.
Key Benefits and Features
- EOR and payroll service integration
- Clear cost structure guidance for Panama
- Payroll tax and contract compliance management
- Cost estimator tool for planning
Price: $399/employee/month
Country Coverage: 180+
G2 Rating: 4.7/5
Free Trial: Demo
Legal & Compliance: Playroll covers Panama labour law requirements, contract compliance, and employer tax obligations including the approximately 12.25% employer tax rate, ensuring adherence to statutory employment regulations.
Onboarding Speed: 2-4 days
Platform Experience: Playroll operates a platform and service mix model featuring a cost estimator tool and technology infrastructure complemented by service support, though with less detailed public information about user experience.
Customer Support: Playroll provides platform plus support with limited publicly detailed information regarding support structure, availability, and service level commitments.
ProsCons
Selection Criteria and Methodology
Our evaluation of employer of record services in Panama follows a rigorous, data-driven methodology designed to provide HR leaders and global teams with objective insights for decision-making. The assessment framework incorporates eight critical dimensions that directly impact operational efficiency, compliance assurance, and employee experience.
- Price: We analyzed the cost structure of each provider, evaluating monthly per-employee fees ranging from $199 to $699, as well as custom pricing models including percentage-based options. Price evaluation considered not only the absolute cost but also the value delivered relative to features, support quality, and compliance coverage.
- Country Coverage: Global reach was assessed by examining each provider's operational footprint, which spans from 120+ to 185+ countries. Providers with broader coverage offer greater flexibility for multi-country expansion strategies, though regional specialists like Serviap Group provide deeper expertise in specific markets.
- Key Features: We evaluated the breadth and sophistication of capabilities including AI-powered contract generation, multi-currency payroll, visa processing, benefits administration, and cost calculator tools. Features were assessed based on their relevance to Panama's specific employment landscape and their contribution to operational efficiency.
- G2 Rating: User reviews provide authentic insights into platform performance and service quality. Ratings ranged from 4.3/5 to 4.9/5 among providers with public reviews, with several providers lacking G2 presence. Higher ratings correlate with superior platform experience and customer satisfaction.
- Legal & Compliance: We examined each provider's approach to Panama labour law, tax regulations, social security obligations, and statutory requirements including the 13th month bonus. Providers with direct entity ownership or specialized regional expertise demonstrated stronger compliance capabilities.
- Onboarding Speed: Time-to-productivity varies significantly from industry-leading 1-2 days to 1-2 weeks. Faster onboarding reduces time-to-value and enables rapid market entry, making it a critical differentiator for companies requiring speed in their Panama expansion.
- Platform Experience: We assessed user interface quality, self-service capabilities, mobile applications, automation features, and overall user experience. Providers ranged from service-led models with limited platform details to sophisticated SaaS solutions with advanced AI capabilities.
- Customer Support: Support quality was evaluated based on availability (24/7 vs. business hours), support team location and expertise, access to local specialists, dedicated account management, and publicly available service level commitments. Superior support structures include in-house teams with Panama-specific knowledge.
This methodology ensures that organizations can identify providers aligned with their specific requirements, whether prioritizing cost efficiency, speed, compliance depth, or technological sophistication for their Panama hiring initiatives.
Expert Tips for Hiring in Panama
- Verify Compliance with 13th Month Bonus Requirements: Panama mandates a 13th month bonus payment, a statutory obligation that must be calculated and paid correctly. Ensure your EOR provider explicitly handles this requirement and incorporates it into payroll calculations and financial planning.
- Evaluate Entity Ownership Models: Providers with direct entity ownership in Panama offer greater control, faster processing, and more reliable compliance compared to those using third-party local partners. Direct ownership typically translates to reduced onboarding times and fewer operational complications.
- Consider Onboarding Speed for Competitive Hiring: Panama's talent market can be competitive for skilled professionals. Providers offering 1-3 day onboarding enable you to secure candidates quickly before they accept competing offers, while 1-2 week timelines may result in lost opportunities.
- Assess Platform Technology for Scale: If planning to build a substantial Panama team, prioritize providers with robust platform capabilities including employee self-service, mobile applications, and automated workflows. These features reduce administrative burden and improve employee experience as your team grows.
- Request Panama-Specific Cost Estimates: Employer tax rates in Panama approximate 12.25%, but total employment costs include social security, benefits, and other statutory obligations. Use provider cost calculators or request detailed estimates to understand your complete financial commitment before hiring.
How to Choose the Best EOR Company
- Define Your Core Requirements: Clarify your priorities among cost efficiency, onboarding speed, platform sophistication, compliance expertise, and support quality. Organizations with tight budgets may prioritize lower-cost options like Skuad ($199/month), while those requiring rapid deployment should focus on providers offering 1-2 day onboarding like Borderless AI or Multiplier.
- Evaluate Compliance Capabilities: Review each provider's approach to Panama labour law, tax administration, and statutory obligations. Providers with direct entity ownership or deep regional expertise like Serviap Group typically offer stronger compliance assurance for Panama-specific requirements including the 13th month bonus and local social security obligations.
- Compare Total Cost of Ownership: Look beyond monthly fees to assess total employment costs including employer taxes, benefits, and any hidden fees. Use cost calculators where available (Acvian, Playroll) and request detailed breakdowns. Consider whether custom pricing or percentage-based models (NNRoad at 10%) provide better value for your salary ranges.
- Assess Technology and User Experience: If managing multiple international employees, platform quality significantly impacts efficiency. Review user interfaces, mobile capabilities, self-service features, and automation tools. Providers like Borderless AI with AI-powered capabilities or Multiplier with centralized dashboards offer superior user experiences.
- Verify Support Structure: Evaluate support availability (24/7 vs. business hours), team location, access to Panama specialists, and account management models. Organizations requiring high-touch support should prioritize providers like Borderless AI offering dedicated account managers or Safeguard Global with local specialists.
- Review User Feedback: Examine G2 ratings and reviews for providers with public feedback. Ratings between 4.6-4.9 indicate strong customer satisfaction. Be cautious with providers lacking reviews (Bradford Jacobs, NNRoad, Serviap Group) as this limits your ability to assess real-world performance.
- Consider Growth Plans: If expansion beyond Panama is anticipated, prioritize providers with extensive country coverage (G-P with 185+, Acvian with 180+, Playroll with 180+) to enable seamless multi-country management through a single platform rather than managing multiple provider relationships.
- Request Demonstrations: Most providers offer demos—use these to evaluate platform usability, assess feature relevance to your needs, and gauge responsiveness and expertise of the sales and support teams. This hands-on evaluation provides insights that specifications alone cannot convey.
Why Choose Borderless AI in Panama as an EOR Provider
- Industry-Leading Speed: Borderless AI achieves 1-2 day onboarding and 5-day payroll processing, enabling companies to secure top Panama talent quickly and ensure employees receive timely, accurate compensation. This operational velocity reduces time-to-productivity and competitive hiring risks.
- Exceptional User Satisfaction: With a 4.9/5 G2 rating, Borderless AI ranks highest among reviewed providers, reflecting superior customer satisfaction with platform usability, service quality, and overall experience across all aspects of the employment relationship.
- AI-Powered Automation: The platform's AI capabilities including automated contract generation, HRGPT for instant HR support, and real-time compliance monitoring reduce administrative burden while ensuring accuracy. These features enable lean HR teams to manage Panama operations efficiently without sacrificing compliance quality.
- Direct Entity Ownership: Borderless AI owns legal entities in Panama and 170+ countries, providing complete control over employment processes, faster processing, and more reliable compliance compared to providers relying on third-party local partners.
- Comprehensive Compliance Coverage: The platform's full entity-ownership model ensures adherence to all Panama local laws including labour codes, tax obligations, social security requirements, and statutory benefits like the 13th month bonus, with real-time monitoring of regulatory changes.
- Superior Support Structure: Borderless AI provides 24/7 in-house support with dedicated account managers for every client, ensuring immediate access to compliance professionals and payments experts who serve as an extension of your team rather than a transactional vendor.
- Transparent Pricing with Value Protection: At $579/employee/month with a price match guarantee, Borderless AI offers competitive mid-tier pricing combined with premium features and service quality, providing exceptional value for organizations requiring sophisticated capabilities without enterprise-level costs.
Final Thoughts
Selecting the right employer of record service for Panama operations represents a strategic decision with lasting implications for compliance, operational efficiency, and employee satisfaction. The providers evaluated offer diverse approaches spanning cost optimization, regional expertise, technological sophistication, and service models. Organizations must align provider capabilities with their specific requirements considering factors including onboarding speed, platform experience, compliance depth, support quality, and total cost of ownership. Data-driven evaluation using objective criteria ensures informed decisions that support successful Panama market entry and sustainable growth. The comparison reveals that no single provider suits all scenarios—budget-conscious startups may prioritize Skuad's affordability, regional specialists may prefer Serviap Group's Latin America focus, while organizations requiring maximum speed and technology should consider AI-powered solutions.
Ready to streamline your Panama hiring process? Book a demo to see how the right EOR partner can accelerate your growth.
