Expand your global workforce in Nicaragua
Your guide to the employment landscape, working customs and local labor laws in Nicaragua
Capital
Managua
Currency
Nicaraguan Cordoba (NIO)
Languages
Spanish, English, Indigenous languages
GDP per Capita
$2,119.74
Employer Tax
21.50 / 22.50 %
Payroll Frequency
Weekly, Monthly
Talent overview
Nicaragua is the largest country in the Central American isthmus. The country has an economic freedom score of 54.8 and is the 122nd freest economy. Agriculture and tobacco amount to roughly $500 million of the country’s total export per year. Additionally, tourism, is booming with a 300% increase since 2006.
Major economic hubs:
Managua, Leon
Skills in demand:
Education Professionals, Tourism Professionals, Medical Professionals, ICT Professionals
Nicaragua
Top local universities in Nicaragua
Universidad Centroamericana (Central American University)
Ranking
Local: 1
World: 3525
Universidad Nacional Autónoma de Nicaragua (National Autonomous University of Nicaragua, Managua)
Ranking
Local: 2
World: 3749
INCAE Business School
Ranking
Local: 3
World: 4977
Universidad Nacional Autónoma de Nicaragua (National Autonomous University of Nicaragua, León)
Ranking
Local: 4
World: 5017
Universidad Nacional Agraria (National Agrarian University)
Ranking
Local: 5
World: 5417
Top Local Job Boards:
Ubica Nica, Tecoloco, Jobs Micro
Number of LinkedIn users:
524, 600
Top Recruitment Agencies:
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
Below are average monthly salaries for jobs in Nicaragua:
| Job Title | Average Monthly Salary (NIO) | Average Monthly Salary (USD) |
| Information Technology Manager | 30,700.00 | 848 |
| Network Engineer | 15,600.00 | 431 |
| Developer / Programmer | 18,200.00 | 502 |
| Project Manager | 21,100.00 | 583 |
| Database Administrator | 18,000.00 | 497 |
| Business Analyst | 22,900.00 | 632 |
| Business Development Manager | 29,200.00 | 806 |
Employ in Nicaragua
Employing in Nicaragua
Hiring in Nicaragua requires you to be aware of the local employment laws, benefits, payroll, and taxes. Given below is everything you need to know on how to successfully onboard talents from Nicaragua.
Employee Contract
Contracts in Nicaragua can either be verbal (for certain jobs) or written according to the Labour Code. The contract can be written in any language the two parties agree on however, by law, it must be translated to Spanish to hold under court.
Probation Period
The probationary period for new employees is up to 30 days.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| April 17 | Maundy Thursday | National Holiday |
| April 18 | Good Friday | National Holiday |
| May 1 | Labor Day / May Day | National Holiday |
| May 30 | Mothers’ Day | National Holiday |
| July 19 | The Sandinista Revolution Day | National Holiday |
| August 1 | Santo Domingo Celebrations Start | Local Holiday |
| August 10 | Last Day of Santo Domingo Celebrations | Local Holiday |
| September 14 | Battle of San Jacinto | National Holiday |
| September 15 | Independence Day | National Holiday |
| December 8 | Feast of the Immaculate Conception | National Holiday |
| December 25 | Christmas Day | National Holiday |
Employee Leaves
| Type of leave | Time period | Mandatory |
| Annual leave/Earned Leave | 15 – 30 days | Yes |
| Maternity Leave | 4 – 12 weeks | Yes |
| Sick Leave (Insured employees) | 52 weeks | No |
Leave Compliance
Payroll in Nicaragua
Payroll cycle
Workers are paid on either weekly or monthly basis.
Minimum wage
The minimum wage in Nicaragua depends on the sector are as follows:
Read more
Overtime pay
Overtime in Nicaragua is considered after 48 hours in excess of the regular hours worked. The compensation rate is 200% of the regular salary.
How taxes work
Employer Payroll Tax
| Type of Social Security Scheme | Contribution |
| Individual Saving Account for Pension (IVM) | 13.50%, for employers with 50 or more employees
12.50%, for employers with less than 50 employees |
| Professional Risks | 1.50% |
| War Victims Risk | 1.50% |
| Sickness and Maternity | 6% |
| Optional Comprehensive Insurance | – |
| Optional IVM | – |
Employee Payroll Tax
| Type of Social Security Scheme | Contribution |
| Individual Saving Account for Pension (IVM) | 4.75% |
| Professional Risks | – |
| War Victims Risk | – |
| Sickness and Maternity | 2.25% |
| Optional Comprehensive Insurance | 22.25% |
| Optional IVM | 14% |
Employee Income Tax
| Annual Taxable Income (Nicaraguan Córdobas, NIO) | Tax Rates (%) |
| 0 to 100,000 | 0% |
| 100,000 to 200,000 | 15% |
| 200,000 to 350,000 | 20% |
| 350,000 to 500,000 | 25% |
| Above 500,000 | 30% |
Non-residents, whose income is sourced in Nicaragua, are taxed at a rate of 20%, regardless of whether their domicile is in Nicaragua or not.
VAT
The standard VAT in Nicaragua is 15% while the export of goods and services is 0%.
Bonus
13th Month Pay
The 13th-month pay is mandatory in Nicaragua, called ‘Aguinaldo’ and is usually paid on December 10.
Employee Benefits
Full-time employees in Nicaragua are ensured to have insurance benefits such as
- Pension and disability
- Health Insurance
- Accident Insurance
- War Victim Insurance
- Accident Insurance
- Marriage Grant
- Maternity Benefits
Employee offboarding
Employers in Nicaragua can terminate the employment contract with and without just cause. Employers can provide no justified reasons for termination according to the Labour Code. Employees in maternity or paternity leave cannot be dismissed except for a just cause established by the Ministry of Labour.
The notice period before termination for probationary and regular employees depends on the contract between the two parties. However, the minimum period is 15 days.
Employees dismissed with just cause are not entitled to the severance pay.
For employees dismissed without cause, the severance pay varies according to the employee’s tenure.
For employees with 3 years or less of experience, one month of salary is paid for each year of service. Employees with 4 years of service onwards are entitled to 20 days of pay per year of service with a ceiling of 5 months’ salary.
Visa and
immigration
Business visas for Nicaragua are easy to get especially for people from the US, UK, and Schengen areas. For the previously mentioned areas, Nicaragua doesn’t issue visas and can be applied for upon arrival. For other countries, regular application for Business Visas is required.
Contacting your home country’s Nicaraguan Embassy to book a Visa appointment and submit all the required documents.
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Overtime Pay
Minimum Wage
| Sector | Monthly (NIO, Nicaraguan Cordobas) |
| Agriculture | 5,721.17 |
| Fishing | 8,699.23 |
| Mines and quarries | 10,275.02 |
| Industrial manufacturing | 7,692.75 |
| Industries subject to a special regime | 8,746.46 |
| Micro and small domestic craft and tourism industry | 6,027.72 |
| Electricity and water; trade, restaurants, hotels, transport, storage, and communications | 10,439.79 |
| Construction, financial institutions, and insurance | 12,803.47 |
| Community services, social and personal | 8,020.47 |
| Central and municipal government | 7,134.52 |
Overtime Pay
Visa and Immigration