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Cabinet adds the occupational safety contribution to the earthquake exemptions

Cabinet Resolution No. 126 adds the Ministry of Labor to the entities that must process exemptions for repair works after the October 9 earthquake.

Ministry of Labor and Workforce Development headquarters with its name on the facade; in the foreground, a white hard hat and an orange safety vest on a concrete bench and a black cat by a planter.
Illustrative image generated with AI.
By Redacción Nexo Capital · Mesa Editorial · October 31, 2026, 10:49

The Cabinet Council approved Cabinet Resolution No. 126 on October 20, 2026, published in Official Gazette No. 30646 of October 30, 2026. The measure amends article 1 of Cabinet Resolution No. 109 of October 13, 2026, which instructed several entities to process fee exemptions for repair and reconstruction works affected by the October 9 earthquake, as a complement to the state of emergency declared through Cabinet Resolution No. 108.

Its article 1 adds the Ministry of Labor and Workforce Development (MITRADEL) to the list of instructed institutions, alongside the Fire Department, the National Institute of Aqueducts and Sewers (IDAAN), the Ministry of Environment and the Ministry of Health, and broadens the scope of the exemption to "fees, contributions or any other charge." The recitals explain the reason: article 11 of Law 67 of 2015 creates the Occupational Safety, Health and Hygiene at Work Fund in the construction industry, financed by a contribution from the developer or main contractor, calculated on the value of the work and paid before it begins.

Article 2 orders MITRADEL to assign the occupational safety officers those works require, in order to prevent workplace accidents. Exempting the contribution therefore does not remove safety oversight: the State takes on the assignment of those officers, which article 10 of Law 67 requires for works whose investment exceeds one million balboas.

For developers, contractors and owners repairing homes, buildings, infrastructure or roads damaged by the earthquake, the measure could reduce the start-up cost of the works, because the contribution to the fund is paid before they begin. The benefit only covers works directly affected by the seismic event, and the resolution does not set the procedure or the documents that will prove that condition.

Implementation depends on MITRADEL, within its powers, carrying out the corresponding procedures and defining how the exemption will be requested. The resolution takes effect upon promulgation, under its article 4. Nexo Capital will follow the procedures the Ministry of Labor adopts to put the measure into effect.

Research assisted by Sentinel, with editorial verification of official sources. Discover Legislat.ai

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