Through Law 121 of December 30, 2019, the creation of the “Learning by Doing” Project was approved, which aims to encourage the offer of the first job to young people who choose their first work experience in private companies.

The project seeks to contribute to the reduction of the unemployment rate of young Panamanians with academic training from secondary, university, vocational or technical education of the Specialized Higher Technical Institute, aged between 17 to 24 years, through paid work internships.

The Ministry of Labor and Labor Development will be the entity in charge of implementing and executing said project through the Employment Directorate, keeping an official record of the data of the people who request to participate in the project and who meet the requirements.

The work internship will be for a period of three (3) months during which the Ministry of Labor and Labor Development will transfer to each young person the sum of three hundred dollars (USD$300.00) per month as a contribution for the payment of the minimum wage corresponding to the work performed by this. The difference between the Ministry's contribution and the amount of the minimum wage for each specific case will be paid to the apprentice by the company participating in the project.

The private company and the young person have the power to: (i) terminate the cooperation agreement before three (3) months or (ii) once the work internship has ended, enter into a contractual relationship that gives the young person the status of “Worker.” since during the internship the latter and the company do not have a contractual or employment relationship.

Young apprentices must pass an evaluation that will take into account their socioeconomic situation, academic performance, work skills and labor market demand.

The “Learning by Doing” project will consist of three selection phases which are assured to be managed equitably and celebrated for effective execution with the help of other entities such as the Ministry of Education, the Ministry of Culture, the Specialized Higher Technical Institute , the official state universities, the Institute for the Training and Use of Human Resources, among others.

The private company that wishes to participate in the “Learning by Doing” project will enjoy a tax incentive equivalent to double the minimum monthly salary according to the region, economic activity, size of the company and functions of the worker for a period of three equivalent months. to the fourth, fifth and sixth month of contracting, which will be applicable to the income tax return for the fiscal period corresponding to the year of participation in the project.