What are the eligibility rules for sick leave in Panama?

In Panama, the eligibility rules for sick leave are as follows:

• From the beginning of the employment agreement, the worker begins to accumulate a disability leave fund.
• This fund is created at a rate of 12 hours for each month worked, totaling 144 hours per year, which is equivalent to 18 days per year.
• The fund can be used in full or partially, with full salary paid by the employer, in the event of a proven non-professional illness or accident.
• The leave may be accumulated for up to 2 consecutive years and can be used in whole or in part during the third year of service.
• The maximum number of days of sick leave to accumulate is 36 days.

If the worker exhausts their disability fund:

• The worker must complete the procedure to obtain a direct subsidy from the Social Security Fund, provided the company is up-to-date with payments to the Social Security Fund.
• If the company is behind on Social Security Fund payments, the company must cover the worker's subsidy.
• When the worker is not entitled to the subsidy from the Social Security Fund and has exhausted the disability fund, the worker has the right to extend sick leave by deducting it from pending vacations.

How is sick leave payment calculated in Panama?

In Panama, sick leave payment is calculated based on several conditions:

• For the first 3 days of sick leave, payment is the responsibility of the employer.

• From the 4th day onward, the Social Security Fund (CSS) provides support by paying 70% of the average base salary of the last 12 months of contributions.

Additionally, if a supported employee has exhausted their disability fund and the company is current with Social Security Fund payments, the employee should apply for a direct subsidy from the Social Security Fund. If the company is in arrears and the supported employee cannot access the Social Security Fund subsidy, the company must cover the employee's subsidy. Lastly, if the supported employee is not eligible for the subsidy and has used up their disability fund, they can extend their sick leave by deducting from their pending vacation days.

What is the process for applying for sick leave in Panama?

To apply for sick leave in Panama, a supported employee must submit a sick leave document issued by qualified professionals, such as doctors or dentists. This document must be validated by the Social Security CSS and certify that the employee is not in good health to perform their duties. Every medical certificate of disability must include the following details in a clearly legible manner:

• The date and time when the disability begins and ends.
• The registration number granted to the physician by the General Directorate of Health.
• The full name of the doctor.
• The address of the hospital or clinic.
• The telephone number of the hospital or clinic.
• The name of the public institution (Social Security Fund or Ministry of Health) or the private clinic where the doctor works.

The doctor may issue the certificate in either printed or electronic form, with continuous and successive numbering. Additionally, the doctor is required to keep a copy of each certificate, including the diagnosis or reason for the disability, in the supported employee's medical file.