Nicaragua

< View all countries

Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Nicaragua. See a sample of popular sections below.

Termination of Employment

In Nicaragua, the law does not oblige employers to observe a notification period for termination. However, termination pay shall be given to employees dismissed without just cause. The amount of this benefit depends on their tenure and is paid as 1 month's salary for each year of service for the first 3 years and 20 days of salary for each year of service from the fourth year of service. The termination benefit amount cannot be less than a month's pay or exceed 5 months' salary.

Employees with indefinite term contracts must give a notice period of 15 days to their employer when they decide to terminate their employment agreement.

Work Permits

Migrant workers are classified as non-resident foreigners. They are given authorization by the General Directorate of Migration and Immigration of Nicaragua, which allows them to remain and work in the country for up to a year. To obtain such authorization, foreign nationals need to submit their employment contract, proof of economic solvency, and written commitment from the employer. 

Paid Annual Leave

Under Nicaragua's law, female employees are entitled to 4 weeks of rest before and 8 weeks after the delivery of their child (10 weeks in the case of multiple births). If delivery occurs before the date indicated by the doctor, the unused leave is added to the postnatal rest period. 

Employees who have paid at least 16 weekly contributions towards social security within 39 weeks preceding the presumed delivery date are entitled to maternity allowance from the National Unified Health System. The maternity allowance is equal to 60% of the average weekly remuneration. The employer is obligated to pay the remaining 40% of the employee's average weekly remuneration. If the employee is not insured by the state social insurance system, the employer is obligated to pay the employee's entire average weekly remuneration during maternity leave.

Working Hours

According to the Labor Code of Nicaragua, ordinary working hours must not exceed eight hours per day or 48 hours per week. Night work is limited to 7 hours a day or 42 hours in a week. The ordinary workday of mixed work (day and night) is limited to 7.5 hours a day or 45 hours per week. In unhealthy or dangerous workplaces, regular working hours must exceed 6 per day. Employees under 18 years of age may not work more than 6 hours a day or 30 hours a week.

Employees and employers can extend working hours by a maximum of 2 hours a day by providing extra time off. 

Maternity Leave

Under Nicaragua's law, female employees are entitled to 4 weeks of rest before and 8 weeks after the delivery of their child (10 weeks in the case of multiple births). If delivery occurs before the date indicated by the doctor, the unused leave is added to the postnatal rest period. 

Employees who have paid at least 16 weekly contributions towards social security within 39 weeks preceding the presumed delivery date are entitled to maternity allowance from the National Unified Health System. The maternity allowance is equal to 60% of the average weekly remuneration. The employer is obligated to pay the remaining 40% of the employee's average weekly remuneration. If the employee is not insured by the state social insurance system, the employer is obligated to pay the employee's entire average weekly remuneration during maternity leave.

Minimum Wage

The minimum wage is determined by the National Minimum Wage Commission and currently ranges from NIO 5,721.17 to 11,803.47 (Nicaraguan córdobas) per month, depending on the industry. All employees are entitled to minimum wage.

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Nicaragua.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

 Country Snapshot

Get the full Country Snapshot with 25 sections of information about labor law in Nicaragua.