Employment contracts must be written indicating compensation, benefits and termination requirements thats s


Salaries are paid semi-monthly.

HR & Labor

Working Hours: Full time employment is considered 48 hours a week, and 8 hours a day.
Working Age: An employee must be at least 14 years old to be employed.


In order to work in Nicaragua, employees must apply for a visa to receive resident status to legally work.


Employees are entitled to a Christmas bonus of one months salary

Minimum wage

Minimum wage ranges within the nine economic sectors from 3,187.43 Nicaraguan Cordobas monthly (in the agricultural sector) to 7,133.44 Nicaraguan Cordobas monthly (in the financial sector).

Pension fund

The employer contributes 7% of employees wages.

Employees must contribute 4% of their wages, and voluntary contributions can be either 10% or 18.25%.

Advance notice

Employees must provide 15 days notice.

Termination procedure

To terminate employees, employers must request for termination from the labor inspection department. At the time of dismissal, the employee is entitled to remaining vacation pay and their annual bonus.

Severance Pay

Those employed for up to 3 years are entitled to one months salary for each year employed. From 4-6 years of employment is entitled to 20 days salary for each year. Above 6 years of employment is entitled to 5 months salary.

Sick Days

Work related injury or illness is entitled to one year, non-work related illnesses is entitled to 26 weeks (which is often extended to a year).

Public Holidays

There are 9 public holidays.

Vacation time

Employees are entitled to 15 calendar days for every 6 months employed (it is generally expected to take all at once).


VAT is 15% standard rate.

Payroll Tax

1) Social Security: 19%
2) Instituto Nacional Tecnológico: 2%

1) Social Security: 6.35%