Friday, April 4, 2025.
The Tipping Point – Generosity, Culture, and Perspective
Recently, someone asked in an expat forum: “How much should you tip in Panama?”
I offered my perspective, something I’ve developed over 35 years of living and working in this country:
“10%–20%. I’ve been fortunate and have worked for tips before, so I know what it’s like to depend on them. I usually leave 15%, and I’ll even tip the kid at PriceSmart who bags my groceries and helps me to my car $20–$40, depending on how much I bought. I want to make their day.”
That response got mixed reactions. Some said they do the same. Others, though, were critical—even accusatory.
I was told I was “hurting the economy,” “disrespecting local culture,” and warned about the “negative ripple effects” of over-tipping. One person insisted I “please stop.”
Let me be clear.
I didn’t just move here. I didn’t retire here. I grew up here. Panama is my home. I arrived when I was 19 and have spent my entire adult life here—raising a family, starting businesses, protecting local institutions, and building relationships across generations. My kids were born here. My best friends are Panamanian. My life is deeply rooted in this country.
So when I tip a kid $20 for helping me with $600 worth of groceries—he’s not just “carrying bags.” He’s working. He’s organizing, packing with care, protecting fragile items, getting boxes, braving the heat, carting my stuff to the car, and helping me get everything inside without breaking a thing.
And here’s something that puts this in perspective: these young workers often earn less than $500 a month—many earning around $455 for full-time hours under Panama’s current minimum wage for retail workers. That’s about $2.37 per hour. Some don’t make a salary, but work for tips only.
Now, consider this: the Basic Family Food Basket in Panama is just over $340 per month. That means more than half of a minimum wage worker’s salary goes just to food—and that’s before rent, transportation, or anything else.
So no—this isn’t about distorting an economy. This is about recognizing that a $20 tip from someone spending $600 on groceries isn’t reckless—it’s a meaningful acknowledgment of hard work, especially when that worker might not see $600 for a full month and a half of labor.
This isn’t about guilt or saviorism. It’s about respect for effort, service, and the value of time.
And to emphasise: I’m not telling anyone else how much to tip. I’m simply saying what I choose to do, as someone who’s lived here for decades, and as someone who believes in recognizing people who take pride in what they do—regardless of the job.
But I’m also open to hearing different views. So I’ll ask you:
🟡 If you’ve lived in another country, do you adjust your tipping based on their norms—or your values?
🟡 Do you think generosity should be restrained in the name of cultural preservation?
🟡 Is it possible that some of us have been here long enough to understand when an act is kind and when it’s disruptive?
Let’s have a respectful conversation—one based on real experience, real numbers, and most importantly, real people.
Until next time,
Brett Mikkelson
TOP NEWS and TIDBITS:
Important Legal Alert for Expats and Tourists in Panama: Drug and Firearm Laws You Must Know
By Carlos Sanad
Below is an “ALERT” for all expats residing in the Republic of Panama, tourists passing through any airport or port in the country, or those coming to spend some quality time in our country. The purpose of this publication is to prevent foreigners from experiencing unpleasant moments due to ignorance of the laws, particularly those pertaining to drugs and firearms.
Drug-related crimes.
These crimes are clearly defined under Chapter V, Articles 312 to 324 of the Panamanian Criminal Code. If you visit any South American country, you will find that, in tourist areas and elsewhere, they sell small bags containing dried coca leaves. These bags are sold over the counter in some South American countries, such as Colombia; however, they are illegal in Panama, and if you are caught in possession of one of these bags, even if it only contains two dried coca leaves, you will be charged with international drug trafficking. If the quantity of leaves is very small, you may be convicted of consumption; under these circumstances there is always a possibility to commute prison term for a fine. That is why we warn foreigners who visit South American countries and then come to visit Panama, not to bring any product containing substances such as marihuana for medical use or dried coca leaves to make tea. Additionally, it is important that when purchasing cosmetic products, such as hair shampoo, you make sure that is hemp-free. Otherwise, drug-sniffing dogs, at port facilities, will perceive the hemp resulting in a false positive for drugs, creating a cumbersome situation for the person who will be detained for 48 hours before going in front of a judge and argue the case and crime lab results.
In that sense, Chapter IX of the Panamanian Criminal Code under the title of Possession and Trafficking of Weapons and Explosives, defines this crime. I will refer to Articles 333 and 335, since these are the most frequently violated in Panama due to foreigners’ ignorance of Panamanian laws.
Article 333 provides as follows: “Anyone who, without legal authorization, possesses or carries a firearm, its elements, or components, even if the firearm is in detachable parts and, when properly assembled, makes it useful, shall be punished with imprisonment of eight to ten years. The imprisonment shall be ten to twelve years in any of the following situations:
1. If the possession is of five weapons or more.
2. If the gun is a weapon of war or of great destructive power.
3. If the weapon is used to support a criminal organization or insurgent groups.
4. If the person authorized to possess or carry a firearm lends the weapon or allows a third party to use it, or directly conveys it to another person, unless this is legally or statutorily permitted.
5. If the weapon is used to provide private security services.
The penalty shall be increased by one-third to one-half if the weapon is lent, or its use is permitted, or if it is given to a minor or a person with a criminal record. that prevent that person from obtaining a license to carry or a certificate to possess firearms.
Article 335 provides as follows: Anyone who, without legal authorization, manufactures, transports, sells, purchases, transfers, introduces, removes, or attempts to remove from the national territory explosives or firearms of any type, model, or class, their components, or ammunition, shall be punished with imprisonment of twelve to fifteen years.
The penalty shall be increased by one-third to one-half if:
1. The agent uses false or altered documents to carry out any of the acts indicated in this article.
2. The transaction is carried out on behalf of the Panamanian State or if it exceeds the terms of the mandate.
3. The transaction involves a war weapon or one of great destructive power.
Based on the above, it is clearly established that no person residing in Panama, whether permanent or temporary, may purchase any firearm components, i.e., magazines, firing pins, etc., outside of Panama (usually via the internet) or in any other way, since this would be a direct violation of the previous criminal articles. These legal provisions also imply the purchase abroad and importation of firearms to Panama. Keep in mind that all crimes involving guns are processed by the Organized Crime District Attorney’s Office. Additionally, the possession of ammunition of calibers other than those listed on the Panamanian firearms permit is also a crime. For example, if you own a 9mm and 38 caliber firearms and you are found in possession of .22 caliber ammunition, you will be accused under the generic charge of illegal possession of weapons and explosives.
Fuel Price Increase Announced in Panama Starting This Friday
The National Energy Secretariat announced that starting Friday, April 4, there will be an increase in fuel prices in Panama. These new prices will remain in effect until Friday, April 18, 2025.
Fuel Price Details in Panama:
• 95-octane gasoline: increases by $0.05 per liter.
• 91-octane gasoline: increases by $0.02 per liter.
• Diesel: increases by $0.01 per liter.
Per gallon, the prices will be as follows:
- 95-octane: B/.3.64
- 91-octane: B/.3.36
- Diesel: B/.3.08
Due to Issues! Executive Could Veto Mandatory Use of Child Restraint Seats
Following the diverse opinions sparked by the approval of Law 52, which mandates the use of child restraint seats in private vehicles, President José Raúl Mulino announced that he is conducting a thorough analysis of the law and does not rule out vetoing it due to concerns.
“I don’t think this law will receive my approval. I have asked the legal team to analyze it carefully because it is very likely to be vetoed due to inconvenience,” he stated.
The legislative proposal has been labeled as “inconsistent” by citizens since it does not apply to school buses, taxis, and commercial transport, where minors also travel and are at risk of traffic accidents.
The president appears to share this viewpoint, noting that it does not make sense to force private vehicles to comply with this regulation while school buses—which transport the most children—are exempt.
Amid the criticism, the bill’s proponent, Congresswoman Yarelis Rodríguez, requested that the Executive not enact Law No. 52. While the project aims to safeguard children’s physical well-being, she acknowledges that the current economic situation may prevent parents from making this investment.
“I want to ask the President of the Republic to please not approve this law mandating the use of child restraint seats,” she emphasized.
The law states that children shorter than 135 cm must travel secured in a child restraint seat placed in the vehicle’s back seat.
Rodríguez based her proposal on a World Health Organization (WHO) report, which indicates that these seats reduce the risk of death and severe injuries by 70%.
Additionally, the law proposed fines of up to $500 and a three-month license suspension for non-compliance.
United States Imposes 10% Tariffs on Products from Panama and 11 Other Latin American Countries
U.S. President Donald Trump announced on Wednesday the implementation of a 10% tariff on products from Panama, Brazil, Colombia, Argentina, Chile, Peru, Costa Rica, the Dominican Republic, Ecuador, Guatemala, Honduras, and El Salvador.
This measure, which is part of a new trade strategy, aims to achieve what Trump called “balance in international trade.” “We cannot allow other countries to take advantage of our economy. These tariffs are necessary to ensure fair conditions,” the president stated from the White House.
The announcement has generated reactions in the affected countries, where business groups and governments are analyzing the impact of the measure on their exports. Panama, in particular, has a significant trade relationship with the U.S., being its main trading partner.
An official response from the affected Latin American governments is still awaited. Meanwhile, analysts warn that the decision could strain economic relations between the U.S. and the region.
Panama Metro: Road Closures on the Pan-American Highway Announced Until April 6th
From Wednesday, April 2, to Sunday, April 6, some lanes on the Pan-American Highway will be temporarily closed, as announced by the Panama Metro on its social media.
This disruption will affect drivers traveling through areas such as Arraiján Cabecera towards the Pan-American Highway, Panamá Pacífico towards Panama City, the Interchange towards Arraiján Cabecera, and Arraiján Cabecera towards La Chorrera.
♦️ Arraiján Cabecera towards the Pan-American Highway
The closure of the Arraiján Cabecera interchange lane that leads from Omar Torrijos Avenue to the Pan-American Highway.
The closures will occur from 9:00 p.m. to 4:00 a.m.
♦️ Panamá Pacífico towards Panamá Centro
Closure of one section of the two lanes on the Pan-American Highway leading towards Panama City, at the Panamá Pacífico station.
The closures will occur from 8:30 p.m. to 7:00 a.m.
♦️ Arraiján Cabecera towards La Chorrera
- Closure of the lanes leading towards La Chorrera, from the new Loma Cová interchange to the Arraiján station, in front of the Xtra Plaza.
- Closure of the access road from Vía Centenario to Arraiján Cabecera.
The closures will occur from 9:00 p.m. to 7:00 a.m.
♦️ Interchange towards Arraiján Cabecera
The closure of the lane at the Arraiján Cabecera interchange that leads from the Pan-American Highway to Omar Torrijos Avenue, at the El Puente Restaurant street in Arraiján Cabecera.
The closures will occur from 10:30 p.m. to 4:00 a.m.
ATTT and ENA: New Fines for Driving Without Balance on the Toll Roads Are Now in Effect
Ten days after the implementation of changes in the fines for driving without balance on the toll roads, the National Highway Company (ENA) reported that the measure aims to reduce delinquency and improve traffic flow.
Starting this week, the new regulations, which modify the Vehicle Traffic Code, came into effect, establishing new conditions for paying fines for this offense.
Changes in the Law for Payments to ENA and Fines to ATTT
Main Changes in the Regulations
• A fine of B/. 10.00 for those driving without balance on the toll roads and highways.
• The offense will directly apply to the vehicle owner.
• The fine cannot be paid at ATTT until the balance with ENA or the corresponding concessionaire is settled.
• The online payment option has been removed, so drivers must pay their debt to ENA before resolving their situation.
These measures, approved through a new Executive Decree, aim to reduce toll evasion and improve road safety. For more details, consult the Official Gazette: www.gacetaoficial.gob.pa
