Are Wages In Panama Fair?
Do Panamanians Earn Enough Money To Survive?
Panama’s minimum wage is much lower than in first world countries. The argument used to be that the cost of living is much cheaper in Panama than in North American and European countries. Though that still holds true in some instances, prices are skyrocketing in Panama. Should Panamanians be earning more money?
Panama’s minimum wage depends on the area of the country. In the countryside of Panama, some people earn just $250 per month. In Panama City, the minimum is a bit higher. Even if a Panamanian is earning $400 a month, there is a good chance they are supporting a family on that small amount of money.
Panamanians must pay for school uniforms for their children, feed the family, pay the ever increasing price of electricity and gas. Thanks to the real estate boom in Panama, some Panamanians are no longer able to afford a nice, middle class home because they are now priced out of the market. A gallon of gas costs the same amount of money as it does in the US or Canada, but who in North America would work for just $400 per month?
Some Panamanians in Panama’s interior provinces earn just $45 per week. $45 does not go very far in the grocery store alone. Add to that transportation costs, electricity, housing, etc. There certainly isn’t much (if anything) left over at the end of the month. Costs are rising in Panama, should the wages be increasing as well?
Low wages in Panama are not exclusive to untrained workers. Panamanian doctors and dentists start out their careers earning about $1200 per month. These are some of the best trained professionals in the world, yet earn the amount of money in one month that a doctor in the US would make in a couple of days.
Many foreigners in Panama complain that it is difficult to hire good help. It seems only reasonable that a well trained, well educated Panamanian would leave Panama and move to a country where they are paid what they are worth.
Agree? Disagree?
| Written by Rebecca Tyre |  |
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Filed under: Culture, News on October 14th, 2008
You are correct. And wages will not increase. The minimum wage in Panama is not enforced by the law either. Go to a place like Decapolis, a high class hotel in the city. Ask a waiter how much money he makes. They make $150 a month, which would be illegal. But the argument is, if you take the job, it’s your problem. Imagine if americans let corporations shrink their wages, don’t you think they would do so? In Panama bussiness owner will NEVER pay so much for hired help. Besides, the panamanian labor force is very incompetent. That is the reason that no matter what happens, the standard of living for most panamanians will only go south from here on.
I have to disagree Rebecca. Panamanians are generally not as materialistic as those of us from Norte Americana and even if it was easy for them to leave; they are too loyal to country and family for that to be an option. Their value system I often find different and quite possibly better than what we are used to seeing in the states. So while they probably should get paid more; it cannot be denied that many have job opportunities that they did not have before the foreigners came to invest here. Like most progress it is a double edged sword. If watching the havoc in the US lately doesn’t make us appreciate being here and force us to re-evaluate our priorities I don’t know what will. The Panamanians don’t want to give up their frequent holidays and time off for family as needed and for that they trade off some measure of wealth as we know it. But who is really rich and who is poor? I see Mothers and Grandmothers home raising children and families who take care of their elders, Dads who come home from work to a wife, a meal and children who have been helped with their homework already; even in the less affluent neighborhoods. I have always been a career woman and as a single Mom it was a high price to pay and many family sacrifices made chasing the almighty dollar.
All minimum wage laws do is outlaw certain jobs. A business owner can’t magically make higher wages appear just because someone legislates it. If businesses can’t hire people at the price they can pay, they go out of business and then there’s no job at all.
If an employee wants to be paid more, he needs to find a way to make himself more valuable to the company. Then the company will be able to create more value for their customers and have more money to pay the employee. If the company isn’t willing to pay more, the now valuable employee can find another company, another city, or another country to match his abilities.
I agree with Lyn in that many more people are recognizing real wealth is being surrounded by people who love you and having the time to spend it with them. You can’t put a price on that.
You also can’t put a price on being free. That’s why so much of the world’s wealth is finding its way into Panamanian banks.