What Happened
On March 20, 2026 President José Raúl Mulino signed Law 513, creating a national paid internship program aimed at promoting formal employment for young Panamanians. The law—formally titled “Que crea el Programa de Pasantía para incentivar el trabajo formal de jóvenes en el sector privado”—establishes rules for remunerated internships offered by private companies and non-profit entities operating in Panama.
Key provisions
The program targets young people in training or with academic preparation from secondary, university, vocational or technical education. Eligible participants are aged 18 to 25, and minors who already hold a secondary diploma. Each internship may last up to one year with a maximum workweek of 40 hours.
Interns will receive a monthly benefit of B/.450.00. The law specifies that this payment is a subsidy and not a salary, so it will not be subject to tax or social security deductions. Internships do not create a labor relationship or entitle participants to formal labor benefits, but participating employers must obtain insurance coverage for professional risks affecting interns.
Eligibility, company limits and hiring rules
All national and international companies and non-profit entities established in Panama may join the program. To prevent substitution of formal jobs with interns, the law sets limits on the number of interns firms may take on: companies with up to 50 employees may hire up to two interns; those with 50–100 employees up to four; 100–200 employees up to six; and companies with more than 200 employees may incorporate interns up to 3% of their workforce.
Firms that replace formal positions with interns or that exceed the statutory caps face fines between B/.250.00 and B/.500.00. Companies wishing to exceed the limits to provide additional practical learning opportunities must request formal authorization from the Ministry of Labor and Workforce Development (Mitradel).
Oversight and duration
Mitradel will enable accessible, confidential channels—presential, virtual or by phone—for interns to report abuses, harassment, discrimination, non-compliance or other violations of the program. If an employer chooses to hire an intern at the end of the placement, the employment must be formalized with an individual contract under the provisions of the Labor Code; hiring minors requires parental or legal guardian consent.
The internship program is established for an initial three-year period from its entry into force and may be extended once by executive decree for an additional three years.
What this means
The government presents the law as a step to expand opportunities for young people to gain skills and work experience and to reduce unemployment. Minister of Labor Jackeline Muñoz, who signed the law alongside President Mulino, said the measure demonstrates the state’s commitment to generate real pathways into formal employment and to recognize compensated work experience for interns.