Nicaragua is located in Central America. It is famous for its landscape of lakes, volcanoes, and beaches. It has a population of over six million people and a mix of indigenous and Spanish cultures, resulting in a diverse range of music, food, language, and religion. Spanish is the most widely spoken language in the state. Managua, Nicaragua’s capital and largest city, has a population of over one million people. Trade, textiles, and agriculture account for nearly half of Nicaragua’s exports. Nicaragua’s top three export commodities are beef, coffee, and gold.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Nicaragua.

Capitale :
Managua
Devise :
Nicaraguan Córdoba (C$, NIO)
Langues parlées :
Spanish
Nombre d'habitants :
6.7 million (2021 est.)
Salaire minimum :
Varies across industries
Index du coût de la vie :
$$ (84 out of 139)
Payroll Frequency :
Established in The Contract
Taux normal de la TVA :
15%
Croissance réelle du PIB :
10.3% (2021 est.)

Statutory Holidays

The holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
January 1
New Year’s Day
April 14
Holy Thursday
Movable
April 15
Good Friday
Movable
April 17
Easter
Movable
May 1
Labor Day
July 19
Sandinista Revolution Day
September 14
Battle of San Jacinto
September 15
Independence Day
December 8
Feast of the Immaculate Conception
December 25
Christmas Day

Contract Sharing Time


The approximate time for sharing the contract with an employee in Nicaragua is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know


  • The national minimum wage in Nicaragua is dependent on the employee industry.
  • When the employer, without just reasons, does not provide the homeworker with the necessary or agreed materials to earn the established salary, the worker may terminate the employment contract or relationship, retaining the right to benefits.

Labor Conditions


Working Hours

 

The calendar day for work purposes is between six in the morning and eight at night. The ordinary day of effective daytime work must not exceed eight hours a day or exceed a total of 48 hours a week.

Overtime

 

Work performed outside of normal working hours is considered extraordinary hours, but work performed to correct errors attributable to the worker is not. The number of overtime hours may not exceed three hours per day or nine hours per week. Overtime is paid 100% more than what is stipulated for the respective normal day.

 

Probation Period

In contracts for an indefinite period, the parties may agree on a trial period of no more than 30 days during which any of them may terminate the employment relationship without any liability for them.

Termination Notice Period

In contracts for an indefinite period, the parties may agree on a trial period of no more than 30 days during which any of them may terminate the employment relationship without any liability to them. 

When the contract is for an indefinite period, the worker may terminate it by notifying the employer in writing 15 days in advance.

Leave / Time Off

Annual Leave

Every worker has the right to enjoy 15 days of continuous and paid rest as vacations, for every six months of uninterrupted work at the service of the same employer. Vacations are paid by calculating them based on the last ordinary salary earned by the worker.

Sick Leave

If an employee becomes ill or injured at work, they have up to a year to recover while receiving a Social Security Institute pension.

If an employee suffers from a non-work-related illness or injury, they are entitled to 26 weeks of leave paid by social security.

Parental Leave

There are no provisions in the law regarding parental leave.

Maternity Leave

Pregnant workers have the right to rest during the four weeks before delivery and the eight weeks after, or 10 in the case of multiple births, with the last or best salary. The period of rest is computed as effective work for purposes of the rights for seniority, vacations, and the 13th month. 

The worker, when she is breastfeeding, has 15 minutes at the workplace every three hours during the working day, to feed her child. That time must be computed as effective work. 

60% of the insured’s average weekly earnings in the last eight weeks before childbirth is paid by social security for four weeks before and eight weeks after the expected date of childbirth.

Paternity Leave

After the child is born, the father is entitled to five business days of paid paternity leave.

Other Types of Paid Leave

Workers have the right to leave or leave with pay in the following cases: 

  • Due to the death of the father, mother, children, or spouse, a partner in a stable de facto union according to the law, up to three consecutive business days;
  • For marriage, up to five consecutive business days;
  • Workers who have a seriously disabled person under their care may request the employer a reduction in the working day with proportional salary, by agreement between the parties, for the necessary time.

Unpaid Leave

There is no statutory provision for unpaid leave.

Statutory Benefits

​​Social security contributions are levied on salaries at a rate of 21.5% for employers and 7% for employees. These rates are increased annually.

Common employee benefits include:

  • Pensions
  • Supplementary health insurance
  • Life and disability insurance
  • Discounts to company stores
  • Transportation allowances
  • Meal allowances
BenefitsEmployer ContributionsEmployee Contributions
Pension and Disability12.5% (up to 50 employees) or 13.5% (more than 50 employees)4.75%
Health Insurance6%2.25%
Accident Insurance1.5%
War Victims1.5%
Total21.5% or 22.5%7%

Health Insurance

Employers contribute 6% to health insurance, while employees contribute 2.25%.

Nicaragua has a public/private healthcare system.  Benefits include general and specialist care, hospitalization, laboratory services, and maternity care.

Other Insurances

Accident Insurance

Employers contribute 1.5% of covered payroll (+1.5% of covered payroll for war victims’ pensions). The employee must be assessed with a work injury or an occupational disease. Accidents that occur while commuting to and from work are also covered.

 

Unemployment Insurance

There is no mandatory unemployment insurance in Nicaragua.

Public Pension

Employers contribute 12.5% to the pension if there are up to 50 employees, or 13.5% if there are more than 50 employees, while employees contribute 4.75%.

To be eligible, employees must be 60 years old and have contributed for at least 750 weeks. 

The pension can be deferred until the age of 70. A working pensioner must make contributions. The pensioner’s salary cannot exceed the amount of their pension. The pension is not payable outside of the country.

Other Statutory Benefits

Marriage Grant

The grant is supposed to help with marriage expenses. The employee must have at least three years of contributions. A lump sum of one month of the insured’s monthly earnings is paid. The benefit is paid for only one marriage

 

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

 

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