The Greek giants have made part payment of the monies owed the Ghanaian midfielder.
Essien joined Panathinaikos in early 2016 from Chelsea, but he failed to live up the expectation of the club and his contract was terminated in September, 2016.
The Greek side were ordered to settle the €418,975 unpaid salary arrears of Michael Essien from February to March 2016 when he was with the club.
Panathinaikos who have since refused to make the payment were instructed by an Athens court to settle it within five days or suffer three points deduction.
Panathinaikos have quickly paid €53, 000 to Michael Essien to avoid adding salt to their wounds.
The former Greek champions placed 11th on the league log with 32 points to finish three places above the relegation zone.