The Social Security Fund (CSS) will manage a budget of $8,507 million during 2027.
That figure represented a net increase of $296.3 million (3.6%) as compared with the budget of $8,222 million approved for 2026.
The SSC’s budget and financial projections are key to understanding the sustainability of the pension system and health care as they depend greatly on the evolution of formal employment and conduct of quota income.
The more jobs and more contributors, more will be the contribution that the institution receives.
To finance its operation, CSS projects current revenues amounting to a total of $7,566 million in 2027, representing a significant growth from $6,802.6 million in 2026.
The pillar of these resources come mainly from social security contributions (labour and occupational and insurance premiums), estimated at $5,025 million, an increase from the previous year’s $4,427.1 million.
The expected increase in collection of contributions was, however, not only due to an increased level of contributors.
Indeed, an important part responded to the gradual implementation of the increase in the employer contribution rate established by Act No. 462 of 2025.
The reform provided a step-by-step adjustment to the contribution of employers: the rate remains at 13.25% up to 28 February 2027 and increases to 14.25% from 1 March 2027 to 28 February 2029 and will rise to 15.25% from 1 March 2029.
That increase aims to strengthen retirement system income and contribute to improving its financial sustainability in the medium and long term but at the same time challenges increased spending for employers.
On the other hand, and as planned with the reforms to the CSS law, central government support remains critical.
By 2027, a total of $1,496 million will be transferred to the entity by the State to several CSS programs.
Of this amount, the most important contribution is to the Unified Solidarity Fund amounting to $1,044 million.
That contribution met the 4% annual increase required by law to seek to reduce the deficit in the payment of Panamanian pensions.
Operating or operating expenditure for 2027 has been set at $5,581 million.
The programme breakdown indicates where the highest economic burden is focused.
The Invalidity, Old and Death (IVM) program, which funds retirement and retirement payments, will concentrate most of the expenditure with $3,135.7 million, versus $2,930.9 million budgeted in 2026.
For its part, the Health and Maternity program, charged with financing care and the purchase of inputs, will have $1,862 million, a slight reduction from $1,896.8 million from the previous year, in line with intended adjustments to health spending.
Meanwhile, the program of Professional Risks will have $365.5 million, just under $367.7 million assigned in 2026.
The fund cover care for occupational accidents and illnesses as well as benefits, compensation and pensions from these contingencies.
The total CSS investment for 2027 will be $2,926.5 million, above the $2,782.2 million budgeted for 2026.
Nevertheless, most of that money, $2,584.2 million, will be dedicated to financial investments, that is, resources that are put into markets to generate returns and strengthen the sustainability of the institution’s funds.
In infrastructure and equipment, CSS will invest $342.4 million.
Of that amount, $186.5 million will be for the construction and refurbishment of health care facilities, while $155.8 million will be used to buy medical equipment and machinery.
That investment exceeded the $305.1 million dedicated to those same items in 2026.
