Economy

Workers see wage variations

The minimum wage increase will mean different things for different workers, depending on where they live and what they do.

When the government raised the minimum wage earlier this month, it was widely reported that workers would be paid either $310 or $325 per month depending on the size of the company they work for.

But the truth is that the actual wage also depends on where one lives and the nature of one's work.

Only workers in Panama City, Colón and San Miguelito receive the highest minimum wage of $325 per month, and they must work for a company that has more than 10 employees.

Nilka Urriola, head of the Departamento de Productividad y Salarios of the Ministerio de Trabajo, said that a worker´s wages depend on the industry that he or she works in. There are four categories – trade, industry, agriculture and other.

The country is also divided into different regions. Region 1 is Panama, San Miguelito and Colón. Region 2 consists of Chitré, Natá, Las Tablas, Aguadulce, Penonomé, Santiago, Bugaba, Barú, David, Changuinola, Capira, Arraiján, La Chorrera, Chepo and Taboga, while region 3 includes the rest of the country.

The difference isn´t great, as wages in region 2 are 13 cents more an hour than in region 3, a difference of $27 a month. But there is a big difference between regions 2 and 3 and region 1, as the minimum wage in more rural areas can be as low as $218 a month.

The government announced an increase in the minimum wage last week. The increase was approved by representatives from both labor unions and business organizations.

Yet the agreement has also been criticized by both sides. Some employers say the increase will mean that they will have to lay off employees, while some labor leaders are saying the increase is not enough to offset rising costs.

The government raised the minimum wage to offset rising prices of consumer goods. Inflation is becoming a problem, as this year the Consumer Price Index saw its largest increase in 14 years.

Inflation is expected to reach 6 percent this year.

That increase is mostly due to rising prices for fuel and food, both of which have increased dramatically.