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.
Education Professionals, Tourism Professionals, Medical Professionals, ICT Professionals
The top universities of Nicaragua are as follows:
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|
|Developer / Programmer||18,200.00||502|
|Business Development Manager||29,200.00||806|
Workers are paid on either weekly or monthly basis.
The minimum wage in Nicaragua depends on the employee’s position. For more information, please check here.
Overtime in Nicaragua is considered after 48 hours in excess of the regular hours worked. The compensation rate is 200% of the regular salary.
The 13th-month pay is mandatory in Nicaragua, called ‘Aguinaldo’ and is usually paid on December 10.
Full-time employees in Nicaragua are ensured to have insurance benefits such as
|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%.
|Social Security Rates (%)|
|Pension||Family Health||Labour Healthcare||War victims||Total|
|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|
The standard VAT in Nicaragua is 15% while the export of goods and services is 0%.
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.
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.