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LABOR

Index

The legal framework of labor regulations is defined by
  • The Labor Code of the Republic of Nicaragua, Law 185.
  • The Labor Procedural Code, Law 815
  • The Occupational Health and Safety Law, Law 618.
  • The Social Security Law, Decree 974.
  • The General Labor Inspection Law, Law 664.
  • The Minimum Wage Law, Law 625.
Minimum salary

The minimum wage in Nicaragua is established every year, there is no single minimum wage, but rather by sector of economic activity. It is established by keeping a relationship with the behavior of the inflation of the basic basket of goods and with the behavior of each sector of the economy during the preceding year.

MINIMUM WAGE YEAR 2023 PER ECONOMIC ACTIVITY
Sector
Minimum wage
In force for the year 2023
Agricultural
US$ 142.56
Fishing
US$ 216.77
Mining and quarry
US$ 256.03
Manufacturing Industry
US$ 191.69
Micro and small craft industry and national tourism
US$ 150.20
Electricity, gas and water, commerce, restaurant and hotels, transportation, storage and communications
US$ 261.49‎ ‎ ‎
Construction, financial and insurance establishments
US$ 319.04
Community, social and personal services
US$ 199.85
Central and municipal government
US$ 177.79
Free Zone
US$ 222.18
STRUCTURE OF THE LABOR LOAD IN % OVER THE SALARY

The cost of labor is not based solely on the minimum wage but on the calculation of the workload, it means, social benefits and other legal obligations for the employer that are structured based on the basic salary.

Salary
100%
Vacations
8.33%
Thirteenth month
8.33%‎
Compensation
8.33%
INSS Employer(21.50 % - 23 %)
21.50%
INATEC
2%
TOTAL OF WORK LOAD
148.50%
The workload is broken down as follows
  • 1 month of vacation per year
  • The payment of Christmas bonus or thirteenth month
  • 1 month of compensation for seniority per year worked, up to a maximum of 5 salaries in 6 years of work.
Broken down as follows:
Year
Salary
1
1 month salary
2
1 month salary
3
1 month salary
4
20 days of salary
5
20 days of salary
6
20 days of salary
Maximum
5 months of salary
Employer Social Security: 21.5% to 22.50% of the salary earned, depending on whether you have less or more than 50 workers.

National Technological Institute (INATEC): 2% on the earned salary/on the total payroll, monthly.

In the end, the additional workload of a worker represents 48.50% of his basic salary.

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LABOUR:

Our main focus in ACZALAW is to provide the client with preventive legal advice that avoids situations of authority, non-compliance and sanctions, and if it were the case, we have strong capacity to deal with administrative and judicial - labor processes.

We advise our clients on:

  • Preparation of individual employment contracts.
  • Preparation and processing of internal work regulations.
  • Termination of employment relationships.
  • Labor compliance audits in the company to identify contingencies.
  • Training in labor legislation for Human Resources personnel and executives of functional areas, on essential issues for compliance with regulations and the correct management of labor relations with personnel.
  • Negotiation of collective agreements or pacts, advice in situations of labor conflict.
  • Representation and advice in labor processes of an administrative or judicial nature, conciliations before labor authorities, social security or judicial instances.

The go-to law firm to do business in Nicaragua

Links of interest

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    2 blocks south, 1 block east
    Colonial Los Robles, Managua

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