News
Wednesday 19th March 2025.
March 18, 2025
On Tuesday, March 18 , the President of the Republic, José Raúl Mulino , approved Bill 163, which reforms Organic Law 51 of the Social Security Fund (CSS) .
This is Law 462 of 2025 , which approves reforms to Social Security.
The president signed the law that will govern Panama’s social security system amid calls for protests and strikes from unions, teachers’ associations, and social organizations.
He did so at a sober ceremony at the Palacio de Las Garzas, which included a small group of guests: the Minister of Economy and Finance, Felipe Chapman ; the president of the National Assembly, Dana Castañeda ; the Minister of Health, Fernando Boyd Galindo ; and the director of the Social Security Fund, Dino Mon.
The bill, recently approved by the National Assembly, introduces changes to the administrative and financial structure of the CSS, including modifications to the pension and healthcare systems.
However, some sectors argue that the regulation does not guarantee the sustainability of the system and could result in negative consequences for workers and retirees, a claim that CSS authorities deny.
The bill, recently approved by the National Assembly, introduces changes to the administrative and financial structure of the CSS, including modifications to the pension and healthcare systems.
However, some sectors argue that the regulation does not guarantee the sustainability of the system and could result in negative consequences for workers and retirees, a claim that CSS authorities deny.
The passing of the law marks a new chapter in the debate on the CSS crisis, an issue that has generated controversy in recent years due to the deficit of the Disability, Old Age and Death Program (IVM) and the lack of consensus on possible solutions.
The last three governments, Ricardo Martinelli (2009-2014), Juan Carlos Varela (2014-2019) and Laurentino Cortizo (2019-2024) did not give priority to the issue.
The law maintains the retirement age at 57 for women and 62 for men. However, changes could be made in the future, as three entities contracted by the CSS leadership will conduct an actuarial analysis to determine the feasibility of maintaining or increasing the retirement age.
The regulation establishes the Single Solidarity Capitalization System , which will be supported by a Single Solidarity Fund. This system will have two pension components:
- Non-contributory solidarity component: You may assign a minimum benefit pension of $144 or a solidarity benefit pension, subject to a calculation that includes the contributor’s contributions.
- Solidarity Capitalization Contributory Component: This will provide a Guaranteed Solidarity Pension based on the value of the contributions accumulated in the member’s individual accounts. A rate of return will be applied to this value, subject to the investment policies of the Single Solidarity Fund reserves.
The non-contributory solidarity component of the system provides pensions for different groups of insured persons:
- Fewer than 120 contributions: Individuals who reach age 65 and have contributed fewer than 120 contributions will receive a pension based on the Solidarity Capitalization Contributory Component. If the amount is less than $144, the calculated value will be granted.
- Between 120 and 240 paid contributions: Those who turn 65 and whose pension is calculated to be equal to or less than $144 will receive a minimum pension benefit of $144.
- Less than 240 installments and calculation greater than $144: If the calculated pension is greater than $144.00, but less than or equal to the Guaranteed Solidarity Pension, the amount resulting from the calculation will be granted.
- More than 240 installments: Women aged 57 and men aged 62 whose old-age pension is equal to or greater than $144, but less than the amount that could be granted to them by the Guaranteed Solidarity Pension, will receive a Solidarity Benefit Pension, based on a calculation that includes the contributor’s contributions.
Minister of the Presidency Juan Carlos Orillac warned that teachers who do not attend classes this Friday “will have their salaries docked.”
“Those who don’t work don’t have to get paid,” he said in an interview with Telemetro .
He indicated that teachers have a duty to attend schools and serve students.
The teachers’ unions announced they will go on strike starting this Friday, March 21, in protest of the reforms to the Social Security Fund (CSS) .
“They’ve created an unnecessary message. Teachers’ pensions aren’t affected; that’s false,” the minister asserted.
He pointed out that the students are not to blame and that it’s unfair to disrupt the first week of school. “Let them hold the demonstrations, but outside of school hours, allowing the students to receive a good education,” he added.
The United States has opened a consultation period to determine whether the Panama Canal and six other major shipping routes impose restrictions, practices, or regulations that create unfavorable conditions for international trade, which could eventually lead to sanctions.
The investigation, whose initial purpose is to gather information, is being conducted by the legal office of the Federal Maritime Commission (FMC), whose president, Louis Sola , has fueled President Donald Trump ‘s theory about alleged Chinese control over the operation of the Panama Canal. This theory has been consistently denied by the Panamanian government and the Panama Canal Authority (ACP).
Sola also plans to build a private marina and cruise ship port on Flamenco Island in Amador , right at the Pacific entrance to the Canal. However, President José Raúl Mulino has already warned that he will not allow “someone who attacks us miserably and falsely, as he did,” to do business on state land.
Mulino’s warning doesn’t seem to have discouraged Sola: in January, he was the star witness at a Senate hearing on alleged Chinese influence in the administration of the canal; in February, he proposed the creation of a sovereign wealth fund to finance U.S. investments (like his own) in the canal zone; and now, in March, he is preparing to analyze whether the Canal obstructs international trade.
Last Monday, the FMC called for a public consultation to gather information on restrictive laws and practices in the Panama Canal and six other critical navigation points or “chokepoints”: the Northern Sea Route (in the Arctic, where the Atlantic and Pacific Oceans meet), the English Channel , the Strait of Malacca , the Strait of Singapore , the Strait of Gibraltar , and the Suez Canal .
In its official register notice of the opening of the consultations, the federal commission maintains that it has recent information indicating that these seven routes have developed conditions “that require careful consideration by the FMC in determining its policies and fulfilling its functions.”
Regarding the Panama Canal, the FMC alleges that “political instability or disruptions in its operation could have far-reaching consequences.” It doesn’t specify what these “instabilities” are, but regarding “disruptions,” it mentions congestion due to high demand and restrictions on daily transits due to lack of rain and low lake levels.
“The canal relies on freshwater from nearby lakes to operate its locks, and prolonged droughts, compounded by unpredictable rainfall patterns, can significantly reduce available water levels, impairing its operation and efficiency,” states the register notice , signed by David Eng , secretary of the FMC.
After the consultation period, Hughey will prepare a report with his recommendations. The document will be submitted to Sola and the other two maritime commissioners, who may request further information, initiate a formal investigation, or take corrective measures.
Hong Kong’s local government has joined the criticism of the sale of CK Hutchison Holdings Ltd. ‘s port assets to U.S.-based BlackRock and its partners Global Infrastructure Partners (GIP) and Terminal Investment Limited (TIL) for $22.8 billion.
Hong Kong Chief Executive John Lee Ka-chiu said at a weekly news conference that he opposes “bullying tactics” by foreign governments, when asked about the deal between CK Hutchison Holdings Ltd. and BlackRock involving 43 ports between them in Panama.
Last week, the Chinese government, led by Xi Jinping, strongly criticized the business transaction and urged CK Hutchison to “think twice” before finalizing the sale agreement involving the operations of the Panama ports of Balboa and Cristobal, managed by Panama Port Company.
“Any transaction must comply with legal and regulatory requirements,” Lee said at a press conference with local and international media, according to The New York Times.
John Lee Ka-chiu made it clear that they oppose “the abusive use of coercive or intimidation tactics in international economic and trade relations.”
The negotiations between CK Hutchison Holdings Ltd. and BlackRock have sparked political and economic backlash due to the ongoing trade conflict between China and the Donald Trump administration, over the imposition of tariffs and the U.S. president’s claims about alleged Chinese interference in the management of the Panama Canal, a claim denied by the Panamanian government and the Panama Canal Authority.
Hutchison shares fell 4.9% on Tuesday, March 18, reaching their lowest level since March 4, according to Reuters.
The countdown is on. In just a few days, Executive Decree No. 11, approved on February 20, 2025, by the Ministry of the Interior , will officially take effect.
This reform aims to optimize the collection of fines from drivers traveling on highways and freeways, primarily to combat toll evasion and improve road safety in the country.
Executive Decree No. 11 modifies Executive Decree No. 640 of 2006 and introduces key changes, including:
- Payment of fines : Drivers who are fined must be in good standing with the National Highway Company (ENA) or the corresponding concessionaire before being able to pay the fine to the Land Transit and Transportation Authority (ATTT).
- Elimination of online payment : The online payment option for violations related to corridors and highways has been eliminated. This will force offenders to settle their debt directly with ENA or the concessionaire before regularizing their situation with the ATTT.
- Insufficient balance fines : A $10.00 fine will be imposed for insufficient balance at toll booths along corridors and highways. This primarily affects those who do not have sufficient balance on their payment device.
With the implementation of these new penalties, the responsibility for paying certain violations will fall on the vehicle owner, even if they were not the driver at the time of the violation. This measure aims to ensure that those responsible are held accountable for outstanding debts and improve traffic enforcement.
In addition to the changes to fine collection, Executive Decree No. 11 also provides for the installation of 34 emergency buttons along corridors to improve road safety and ensure immediate assistance in the event of an emergency. The first emergency button is already operational at Costa del Este, and the others are expected to be installed in the coming months.
These new provisions not only aim to increase toll collections, but also reduce toll evasion and ensure safer traffic on the country’s highways and corridors. Authorities assure that the reforms will strengthen regulatory compliance and contribute to improved road safety in the country.
- Executive Decree No. 11 of February 20 will officially take effect 30 days after its publication in the Official Gazette. Therefore, drivers should be prepared to comply with the new provisions and avoid penalties for noncompliance.