2019 Holidays - Panama

Public Holiday Observance Rules in Panama

1. Entitlement to Public Holidays

- Employee Rights: Employees in Panama are entitled to time off with pay on public holidays as mandated by labor laws.

- Work on Public Holidays: If employees are required to work on a public holiday, they are entitled to either additional pay (typically 150% of their regular salary) or an alternative day off, depending on the agreement with the employer.

- Sector-Specific Practices: Government offices and most private businesses are closed on public holidays, though certain sectors such as hospitality and retail may remain operational. Source

2. Holidays Falling on Weekends

- Weekend Adjustment Rule: According to Article 47 of Panama’s Labor Code, when a public holiday falls on a Sunday, it is moved to the following Monday as the official day off. This ensures employees receive a weekday rest day for the holiday.

- Private Sector Flexibility: In some cases, private employers may negotiate different arrangements, such as observing the holiday on the original date or providing an alternative day off during the week. Source

3. Alcohol Restrictions

- Prohibition During Certain Holidays: On specific holidays, such as All Souls’ Day or during Holy Week, the sale of alcohol is prohibited from noon the day before until noon the day after the holiday. Businesses in the hospitality industry must plan accordingly to comply with these restrictions. Source

4. Adjustments for Special Circumstances

- Government Announcements: The Panamanian government has the authority to declare or move public holidays to create long weekends or for national events. These changes are communicated through official announcements and are binding for all sectors.

- Holiday Observance in Different Sectors: Public sector entities strictly adhere to the official holiday calendar, while private businesses may have flexibility in how holidays are observed based on operational needs. Source