The economic analysis of the adjustment to the minimum wage in Panama includes a historical journey from 1959 to 2021, for this, the information generated by the National Institute of Statistics and Census was used, integrating those of the Ministry of Labor and Development. Labor and the International Labor Organization.
The analysis from the economic point of view used indicators that allow us to know the reality and lead to the conclusion that the biannual adjustments to the salary do not improve the level of well-being of the population and do not increase the consumption or purchasing power of the workers. For the study period, 16 executive decrees and two laws that set the minimum wage were established, which evolved since 1959, for qualified labor of B/.0.50 per hour and B/.103.99 per month; until reaching 2021, from B/. 2.76 per hour and B/.574.93 per month.
A valuable source of information was the 2018 Income and Expenditure Survey, which establishes that Panamanian households allocate 17.7% of their expenses to food and 82.30% to satisfy the rest of their needs for housing, clothing, health, transportation, education, recreation, among others. Using the Engel Coefficient, which observes the existence of a close relationship between spending and the level of household income; It is concluded that the adjustment of the Minimum Wage must be 20.76%, to cover the needs of households that amount to B/.1,388.72 per month.
