Talent Wiki - Nicaragua
Your quick guide on talent and labor compliance norms in Nicaragua
Capital
Managua
Currency
Nicaraguan Cordoba (NIO)
Languages
Spanish, English, Indigenous languages
Payroll Frequency
Weekly, Monthly
GDP per Capita
$2,375
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
Local Universities
The top universities of Nicaragua are as follows:
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
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 |
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 | Type |
| 1 Jan | New Year’s Day | National holiday |
| 6 Apr | Maundy Thursday | National holiday, Christian |
| 7 Apr | Good Friday | National holiday, Christian |
| 1 May | Labor Day / May Day | National holiday |
| 30 May | Mothers’ Day | National holiday |
| 19 Jul | The Sandinista Revolution Day | National holiday |
| 14 Sep | Battle of San Jacinto | National holiday |
| 15 Sep | Independence Day | National holiday |
| 8 Dec | Feast of the Immaculate Conception | National holiday |
| 25 Dec | Christmas Day | National holiday, Christian |
Employee Leaves
| Type of leave | Time period | Mandatory |
| Annual leave/Earned Leave | 15 – 30 days | Yes |
| Maternity Leave | 4 – 12 weeks | Yes |
| Sick Leave | 26 weeks | Yes |
Payroll
Payroll Cycle
Workers are paid on either weekly or monthly basis.
Minimum Wage
The minimum wage in Nicaragua depends on the employee’s position. For more information, please check here.
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.
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
Taxes
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 |
VAT
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.
