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Nicaragua Employment Guide

Your quick guide on talent and labor compliance norms in Nicaragua




Nicaraguan Cordoba (NIO)


Spanish, English, Indigenous languages

Payroll Frequency

Weekly, Monthly

GDP per Capita


Employer Tax

21.50 / 22.50 %

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 in 2022. 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 Map

Local Universities

The top local universities in Nicaragua are as follows:

Nicaragua Uni1

Universidad Centroamericana (Central American University)


Local: 1

World: 3525

Nicaragua Uni2

Universidad Nacional Autónoma de Nicaragua (National Autonomous University of Nicaragua, Managua)


Local: 2

World: 3749


INCAE Business School


Local: 3

World: 4977


Universidad Nacional Autónoma de Nicaragua (National Autonomous University of Nicaragua, León)


Local: 4

World: 5017


Universidad Nacional Agraria (National Agrarian University)


Local: 5

World: 5417

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
Nicaragua Talentsource

Talent Sourcing Tips

Top Local Job Boards:

Ubica Nica, Tecoloco, Jobs Micro

Number of LinkedIn users:

524, 600

Top Recruitment Agencies:


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 2023

Date Name
January 1 New Year’s Day
March 28 Maundy Thursday
March 29 Good Friday
May 1 Labor Day / May Day
May 30 Mothers’ Day
July 19 The Sandinista Revolution Day
September 14 Battle of San Jacinto
September 15 Independence Day
December 8 Feast of the Immaculate Conception
December 25 Christmas Day

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 for  No


Payroll 1

Payroll Cycle

Workers are paid on either weekly or monthly basis.

Payroll 2

Minimum Wage

The minimum wage in Nicaragua depends on the employee’s position. For more information, please check here.

Payroll 3

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.


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


Employer Payroll Tax

Social Security Rates (%)
Pension* Family Health Labour Healthcare War victims Total
Employer 12.50 / 13.50 6.00 1.50 1.50 21.50 / 22.50

*Employers with less than 50 employees contribute 12.50%. Employers with more than 50 employees, contribute 13.50%.

Employee Payroll Tax

Social Security Rates (%)
Pension Family Health Labour Healthcare War victims Total
Employee 4.75 2.25 0 0 7.00

Employee Income Tax

Taxable Income Range (NIO) Minimum Tax Charge (NIO) Tax on excess (%)
0 – 100,000 0 0
100,000 – 200,000 0 15
200,000 – 350,000 15,000 20
350,000 – 500,000 45,000 25
>500,000 82,500 30


The standard VAT in Nicaragua is 15% while the export of goods and services is 0%.

Offboarding & Termination

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.

Nicaragua Visa
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Minimum Wage

Overtime Pay

Visa & Immigration