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.
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.
Under Nicaragua's law, all employees are entitled to 15 days of vacation for every 6 months of uninterrupted work with the same employer. Annual leave is paid at the standard wage rate of the employee.
Persons who work for the State and its institutions have the right to enjoy holidays with full salary from Saturday Ramos through Easter Sunday, from December 24 through January 1, and 16 more days during the year.
Employers are obligated to prepare the vacation schedule and share it with their employees. The employee has the right to choose which holidays to take following the above schedule.
In the case of the labor contract termination, the employee has the right to be paid wages for the unused annual leave in proportion to the time worked.
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.
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 Nicaraguan Institute of Social Security. The maternity allowance is equal to 60% of the average weekly remuneration. The benefit is payable for a total of 13 weeks, consisting of 4 weeks of prenatal leave and 9 weeks of postnatal leave.
The minimum wage is determined by the National Minimum Wage Commission and currently ranges from NIO 6,188.02 to 13,848.23 (Nicaraguan córdobas) per month, depending on the industry, as of March 1, 2026. All employees are entitled to a minimum wage.
Nicaragua's Labor Code does not specify pay frequency but requires it to be in the contract of employment, and employers must provide payslips detailing gross and net salaries, deductions, and any overtime pay to employees.
The special-regime rate is set to rise to NIO 10,656.46 (Nicaraguan cordoba oro) per month on January 1, 2027.
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