Nicaragua Employment Guide

Nicaragua Employment Guide

Nicaragua, the largest country in Central America, has a population of about 6.8 million. Its economy is primarily based on agriculture, textiles, mining, and tourism, with increasing investment in manufacturing and services. Employment is regulated by the Nicaraguan Labor Code, which establishes rules for contracts, minimum wage (set by industry and reviewed regularly), working hours (generally 48 per week), paid leave, social security contributions, and termination procedures. Employers are required to register workers with the Nicaraguan Social Security Institute and ensure compliance with health and safety standards.

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Currency

Nicaraguan córdoba (NIO)

Capital

Managua

Official language

Spanish

Salary Cycle

Monthly

Our Employment Guide in Nicaragua

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Paid Time Off (PTO) Policy

Full-time employees at SailGlobal are entitled to 22 working days of paid time off annually. This PTO accrues at a rate of 2.5 days per month. Eligibility for annual leave begins after six consecutive months of employment.

Part-time employees receive pro-rated PTO based on their working hours, ensuring equitable treatment across different employment arrangements.

National and Regional Holidays

Nicaragua observes nine mandatory national holidays, while employees in Managua benefit from two additional regional holidays. Staff in other municipalities are entitled to one local municipal holiday.

The national public holidays include:

  1. New Year's Day (January 1)
  2. Maundy Thursday
  3. Good Friday
  4. Labor Day (May 1)
  5. Sandinista Revolution Anniversary (July 19)
  6. Battle of San Jacinto Anniversary (September 14)
  7. Nicaraguan Independence Day (September 15)
  8. Immaculate Conception Day (December 8)
  9. Christmas Day (December 25)

Practical Implementation Considerations

International HR managers should note that Nicaraguan holiday observance often includes bridge days when holidays fall on weekends. For example, when Independence Day occurs on a Sunday, many businesses grant Monday as a compensatory day off.

Case Study: A multinational manufacturing company operating in León initially struggled with holiday coordination until implementing SailGlobal's centralized leave management system, resulting in 30% fewer scheduling conflicts.

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