Summary.
The draft bill amends the Social Security Fund’s (Caja de Seguro Social) compulsory enrollment principle to require enrollment of employees and registration of employers in the Republic of Panama (República de Panamá). It requires national and foreign workers who provide services in the country to participate, except for self-employed workers. For employees, compulsory coverage includes Sickness and Maternity, Disability, Old Age and Death, and Occupational Risk. The Social Security Fund must promote and facilitate enrollment. Its Board of Directors (Junta Directiva) would regulate enrollment of occasional, seasonal, and domestic workers, including their contributions and benefits.
Self-employed workers could join the pension system voluntarily, solely through the Solidarity Capitalization Component, and pay their own contributions by methods established by the Social Security Fund. The bill sets 9.36% of contributory income for Disability, Old Age and Death and 8.5% of voluntarily declared income for Sickness and Maternity. It provides for regulatory adjustments to the latter amount, incentives for voluntary participation, and surcharges and interest on overdue contributions.
The reform lists the Social Security Fund’s resources and sets contributions from employees, employers, self-employed workers, pensioners, voluntary insured persons, and other insured persons, as well as contributions on the installments of the Thirteenth Month payment. It phases in increases to the employer contribution through March 2, 2029. It includes state contributions and subsidies, trust income, taxes, investments, fines, cost compensation agreements, and other sources. These include shares linked to water resources, protected areas, telecommunications, ports, electricity concessions, notaries, consulates, assets confiscated by the Ministry of Economy and Finance (Ministerio de Economía y Finanzas), and the National Charity Lottery (Lotería Nacional de Beneficencia). It also provides contributions for special pensions for banana workers and proceeds from bonds posted in litigation over medicines and medical devices decided by the Supreme Court of Justice (Corte Suprema de Justicia). One state contribution to Sickness and Maternity is linked to Cabinet Decree NO.14 of April 22, 2009 (Decreto de Gabinete NO.14 de 22 de abril de 2009).
The bill provides fines for failure to register as an employer, enroll employees, or report cessation of operations or replacement of the employer. It guarantees a minimum replacement rate of 60% for the Old-Age Retirement Pension, based on average monthly earnings during the 10 best contribution years. It specifies when the death of an insured person or pensioner gives rise to survivors’ pensions and excludes recipients of a Universal Basic Pension. It governs a spouse’s or partner’s entitlement to a widowhood pension, proof of the relationship, the pension amount, and its duration. Posthumous certification of a de facto marriage would be issued by the National Civil Registry Directorate of the Electoral Tribunal (Dirección Nacional de Registro Civil del Tribunal Electoral).
For public health care, the bill requires targets for consultations, surgeries, and procedures. It bars doctors employed by the Ministry of Health (Ministerio de Salud) or the Social Security Fund from seeing patients in private clinics during their 8 working hours, with sanctions up to dismissal. It sets maximum waiting periods for consultations, tests, and nonurgent surgery; assigns the Director General to oversee compliance and report annually on performance. It authorizes scholarships and financing for general practitioners to specialize, subject to regulatory selection criteria and exclusive service at the institution for a minimum of five years.
The draft bill amends provisions of Law 462 of March 18, 2025 (Ley 462 del 18 de marzo de 2025) and adds articles to Law 51 of 2005 (Ley 51 del 2005). It directs the National Assembly (Asamblea Nacional) to prepare and publish a consolidated text of Law 462 of March 18, 2025. Its provisions concern the Board of Directors, the named public bodies, workers, employers, pensioners, medical personnel, and sectors including health care, banana production, telecommunications, ports, and energy.
What it proposes.
- Enrollment and contributions under the Social Security Fund system.
- Funding sources for the risks administered by the institution.
- Old-age, survivors’, and widowhood pensions.
- Public health care, specialist training, and sanctions.
Who it would affect.
- Employees, self-employed workers, and their employers.
- Insured persons, pensioners, and survivors’ pension beneficiaries.
- Medical personnel in public health services.
- Entities and sectors required to contribute or covered by the proposed revenue sources.
Key points.
- Requires enrollment of employees and registration of employers; exempts self-employed workers from compulsory enrollment and leaves arrangements for occasional, seasonal, and domestic workers to regulations.Arts. 1-2
- Allows self-employed workers to join the Solidarity Capitalization Component voluntarily and sets their pension and health contributions.Art. 3
- Recasts the Social Security Fund’s revenue sources, including contributions, state funding, and income from various activities and entities.Art. 4
- Provides fines for failures involving employer registration, employee enrollment, and employer notifications.Art. 5
- Guarantees a minimum replacement rate for the old-age pension and governs eligibility for survivors’ pensions and widowhood pensions.Arts. 6-9
- Sets medical care targets, restricts private practice during public working hours, establishes appointment deadlines, and provides specialization scholarships tied to exclusive service.Arts. 10-12
- Identifies the amended and added provisions, directs preparation of a consolidated text, and sets commencement after promulgation.Arts. 13-15