The Panama schedule, also called the Panama shift or Panama plan, is designed for 24-hour operations, often used in industries with round-the-clock staffing needs. Originating from the Panama Canal, it’s now widely used to boost productivity while ensuring employees get adequate rest. By rotating shifts, organizations maintain continuous operations and promote work-life balance. Using free employee shift scheduling apps makes it easier to implement and manage this system.
This article covers the benefits, challenges, and strategies for implementing the Panama shift schedule in modern workplaces.
What is the Panama Schedule?
The Panama work schedule is a unique shift pattern commonly used in industries that require 24/7 operations, such as manufacturing, healthcare, and public safety. This schedule ensures continuous coverage while providing employees with a balanced work-life structure.
The Panama schedule operates on a two-week cycle, where employees work 12-hour shifts, with a specific pattern of workdays and days off.

Here’s a breakdown of the Panama schedule:
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Week 1:
- Work on Monday and Tuesday
- Off on Wednesday and Thursday
- Work on Friday, Saturday, and Sunday
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Week 2:
- Off on Monday and Tuesday
- Work on Wednesday and Thursday
- Off on Friday, Saturday, and Sunday
This Panama shift pattern repeats every two weeks, allowing employees to enjoy a mix of on and off-duty days within the cycle. Over a two-week period, employees typically work 7 out of 14 days, which translates to 84 hours of work.
How Does the Panama Schedule Work?
The Panama Schedule operates on a bi-weekly cycle with 12-hour shifts, designed to provide continuous coverage while giving employees adequate time off. Let’s break down how this works with Panama schedule examples:
Example: Manufacturing plant
In a manufacturing plant that runs 24/7, the Panama schedule ensures that all shifts are covered without interruption. Here’s a detailed look at how the schedule works over two weeks:
Week 1:
Monday: Employee A works a 12-hour shift (7 AM – 7 PM)
Tuesday: Employee A works a 12-hour shift (7 AM – 7 PM)
Wednesday: Employee A is off
Thursday: Employee A is off
Friday: Employee A works a 12-hour shift (7 AM – 7 PM)
Saturday: Employee A works a 12-hour shift (7 AM – 7 PM)
Sunday: Employee A works a 12-hour shift (7 AM – 7 PM)
Week 2:
Monday: Employee A is off
Tuesday: Employee A is off
Wednesday: Employee A works a 12-hour shift (7 AM – 7 PM)
Thursday: Employee A works a 12-hour shift (7 AM – 7 PM)
Friday: Employee A is off
Saturday: Employee A is off
Sunday: Employee A is off
What Industries Use the Panama Shift More Often?
The Panama shift schedule is widely adopted across various industries where continuous operations are critical. Its structure of 12-hour shifts over a 14-day cycle with a mix of workdays and off days makes it particularly suitable for environments that require 24/7 coverage. Here are some industries where the Panama shift is commonly used:
Industry | Description |
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💉 Healthcare |
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🏭 Manufacturing and production |
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👮♀️ Public safety |
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👷♂️ Utilities and energy |
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🚌 Transportation and logistics |
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📞 Customer support and call centers |
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Panama Schedule Advantages & Disadvantages
The Panama shift schedule offers a unique balance of work and rest days, making it a popular choice for many industries that require continuous operations. However, like any scheduling system, it comes with its own set of advantages and disadvantages. Here are Panama schedule pros and cons in more detail:
✅ Advantages
Benefit | Description |
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1. Continuous coverage |
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2. Improved work-life balance |
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3. Enhanced productivity and morale |
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4. Reduced overtime costs |
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5. Predictable schedule |
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❌ Disadvantages
Drawback | Description |
---|---|
1. Long work hours |
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2. Disrupted sleep patterns |
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3. Social isolation |
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4. Increased risk of burnout |
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5. Health concerns |
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How to Implement the Panama Schedule
Implementing the Panama schedule effectively requires careful planning and clear communication. Here’s a step-by-step guide to help your organization transition smoothly to this shift system.
1️⃣ Assess feasibility
Evaluate operational needs
- Action: Determine if your operations require continuous 24/7 coverage, as the Panama schedule is best suited for such environments.
- Example: A hospital evaluates whether this schedule maintains patient care standards around the clock.
Analyze workforce impact
- Action: Consider how 12-hour shifts will affect employee well-being and productivity.
- Example: A manufacturing plant surveys staff to identify concerns and potential support needs.
2️⃣ Plan the transition
Develop a transition plan
- Action: Outline key steps, timelines, and pilot phases for the schedule rollout.
- Example: A logistics company starts with a small team before expanding the schedule organization-wide.
Communicate with employees
- Action: Share the “why,” explain the benefits, and open channels for feedback.
- Example: A call center holds Q&A sessions and provides detailed transition materials.
3️⃣ Design the schedule
Create the shift patterns
- Action: Build fair, balanced rotations that give all teams equal work and rest time.
- Example: A utility company assigns Team A to work Mon–Tue, off Wed–Thu, work Fri–Sun, and rotates accordingly.
Ensure compliance with labor laws
- Action: Review local labor laws related to overtime, breaks, and work-hour limits.
- Example: A security firm adjusts its schedule to comply with national employment regulations.
4️⃣ Train and support employees
Provide training
- Action: Educate employees on managing long shifts, sleep hygiene, and work-life balance.
- Example: A healthcare facility runs workshops on stress management and energy conservation.
Set up support systems
- Action: Provide resources like wellness programs, counseling, and flexible time-off options.
- Example: A customer service center introduces a mental health initiative to support staff.
5️⃣ Monitor and adjust
Collect feedback
- Action: Regularly collect feedback from employees and managers to identify any issues and areas for improvement.
- Example: A retail company might use anonymous surveys and regular check-ins to gather employee feedback on the new schedule.
Make necessary adjustments
- Action: Stay flexible—adjust shift rotations or support structures as needed.
- Example: An IT firm tweaks start times after feedback indicates early shifts are too demanding.
6️⃣ Evaluate outcomes
Measure performance
- Action: Measure impact on productivity, satisfaction, absenteeism, and operational efficiency.
- Example: A transportation company monitors delivery times and turnover rates.
Continuous improvement
- Action: Reassess regularly and make data-driven changes.
- Example: A chemical plant holds quarterly reviews to fine-tune shift assignments and resources.
Implementing the Panama schedule can deliver real benefits—but only if you plan strategically and support your people. Follow these steps to make the transition a success.
Overtime Pay with the Panama Schedule
Implementing the Panama schedule brings unique challenges, particularly concerning overtime pay. Here’s how overtime works within this scheduling framework:
❓ Understanding overtime pay
- Standard work hours: Typically, the standard workweek is 40 hours. Any hours worked beyond this are considered overtime, often paid at 1.5 times the regular hourly rate.
- Example: An employee earning $20 per hour would earn $30 per hour for overtime work.
❗ Overtime in the Panama schedule
- 12-hour shifts: The Panama schedule involves 12-hour shifts, meaning employees can frequently exceed the standard 40-hour workweek. Employees work three or four 12-hour shifts per week, totaling 36 to 48 hours.
- Weekly overtime: In weeks where employees work 48 hours, the 8 hours exceeding the standard 40 hours should be considered overtime.
- Daily overtime: In jurisdictions with daily overtime thresholds, such as 8 hours, employees on 12-hour shifts earn 4 hours of daily overtime pay.
Managing overtime pay
- Accurate tracking: Implementing accurate time tracking tools is essential. A time tracker like Everhour can track hours precisely, ensuring fair compensation for overtime.
- Scheduling adjustments: Balancing workloads and minimizing excessive overtime can help manage costs and reduce employee fatigue. Rotating schedules to ensure no one consistently works over 40 hours weekly helps distribute overtime more evenly.
Frequently Asked Questions (FAQ)
What is the Panama schedule?
It’s a 2-2-3 shift pattern with 12-hour shifts. Employees work 2 days, rest 2 days, then work 3 days—then the pattern flips.
Why use the Panama schedule?
It gives employees more full days off and helps employers ensure 24/7 coverage with fewer shift handovers.
Who uses the Panama schedule?
Common in industries like healthcare, manufacturing, emergency services, and utilities—anywhere 24/7 coverage is needed.
What are the pros of the Panama schedule?
- More days off
- Predictable shifts
- Balanced coverage for round-the-clock operations
What are the cons?
- Long 12-hour shifts can cause fatigue
- Rotating day/night shifts can disrupt sleep and routines
How is overtime handled?
Usually, hours over 40 per week are paid as overtime. Some regions also require overtime after a set number of daily hours.
How do I switch to the Panama schedule?
Start with a clear plan, communicate early, train staff, and use software to manage shifts and stay compliant with labor laws.
Can software help?
Yes. Tools like Everhour simplify scheduling, track hours, and handle overtime accurately.
Is the Panama schedule right for every business?
No. It’s ideal for 24/7 operations, but you should evaluate staff needs and legal constraints first.
If you’re looking for a seamless way to improve shift planning, Shifts by Everhour is the perfect solution.
Panama Schedule: Takeaway
The Panama schedule offers a structured yet flexible approach to managing continuous operations, making it an ideal choice for many industries requiring round-the-clock coverage. By providing extended periods of time off, this schedule can significantly improve work-life balance for employees while ensuring consistent productivity for employers.
When adopting the Panama schedule, leveraging the right tools can make a significant difference. Shifts by Everhour, for instance, can help streamline time tracking, manage shift rotations, and ensure accurate overtime calculations, making the transition smoother and more efficient.