Overview

Capital
Currency
Nicaraguan córdoba

Taxes

Employer
19% - Social Security
2% - INATEC
Employee
6.35% - Social Security
0-100,000 NC - 0%
100,001 NC - 200,000 - 15% above 100,000
200,001 NC - 250,000 NC - 20% above 200,000
350,001 NC - 500,000 NC - 25% above 350,000
500,001 NC + - 30% above 500,000

Minimum Wage

General

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).

Payroll

Payroll Tax
1) Social Security: 21.50% for < 50 employees 22.50% for > 50 employees
2) Instituto Nacional Tecnológico: 2%
1) Social Security: 7.00%

Payroll Contributions

Pension Fund
Employee: must contribute 4% of their wages, and voluntary contributions can be either 10% or 18.25%.

Leave

Public Holidays

There are 9 public holidays.

Termination

Termination Process

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.

Notice Period

Employees must provide 15 days notice.

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.

VAT

General

VAT is 15% standard rate.