Remote’s guide to employing in

Nicaragua
nicaragua flag

With localized contracts, easy invoice management, and best-in-class compliance, you can grow your team in Nicaragua with confidence. Currently, you can hire and manage contractors in Nicaragua through Remote, but our EOR services are not yet live.

  • Capital City

    Managua

  • Currency

    Nicaraguan córdoba (C$, NIO)

  • Languages

    Spanish and English

  • Population size

    6,486,201

Services available in this country:
Contractor Management
An aerial view of a church near the ocean.

Facts & Stats

Nicaragua Map Illustration
  • Capital City

    Managua

  • Currency

    Nicaraguan córdoba (C$, NIO)

  • Languages

    Spanish and English

  • Population size

    6,486,201

  • Ease of doing business

    Medium

  • Cost of living index

    N/A

  • Payroll frequency

    N/A

  • VAT - standard rate

    15%

  • GDP - real growth rate

    10.3% (2021)

Nicaragua is a Central American republic bordered by Honduras to the northwest, the Caribbean to the east, and Costa Rica to the south. It’s affectionately known as the land of volcanoes and lakes.

Outside a sizable tourism industry (roughly 6.4% of GDP) the local economy depends on agriculture, services, and remittances from Nicaraguans based in the United States, Costa Rica, and across Central America and the Carribbeans.

Nicaragua has a strong folk heritage, with music, cuisine, and architecture influenced by European, Caribbean, and Iberian culture.

Grow your team in Nicaragua with Remote

You can pay contractors now in Nicaragua with Remote in some currencies (talk to an expert now for full details).

Note that we are busy building our own entity in Nicaragua to provide you with the best possible employment solutions for your employees, but our employer of record service is not yet live in this country.

To employ in Nicaragua, companies must own a local legal entity in the country or work with a global employment solution. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like Nicaragua can get complicated fast, especially without localized expertise.

If you're looking to start hiring in a country like this, partnering with a global employment solution like Remote makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation.

In the countries where we do offer our EOR services, Remote takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks of misclassification

Nicaragua, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Nicaragua may lead to fines and penalties for the offending company.

Employing in Nicaragua

Workers’ rights in Nicaragua are spelled out in several laws, such as:

  • The Nicaraguan Constitution of 1987

  • The Labor Code of 1996

  • The 1904 Civil Code of the Republic of Nicaragua

  • The Law of Equal Rights and Opportunities (i.e. Law 648)

— all of which guarantee equal pay for equal work, safe working environements, job stability, unemployment compensation, regular vacations and protections against discrimination based on age, gender, disability, religion, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off.

10 Public holidays

Jan
Monday, January 1, 20241New Year's Day (Año Nuevo)
Mar
Thursday, March 28, 20242Holy Thursday (Jueves Santo)
Friday, March 29, 20243Good Friday (Viernes Santo)
Sunday, March 31, 20244Easter (Pascua)
May
Wednesday, May 1, 20245Labor Day (Día del Trabajador)
Jul
Friday, July 19, 20246Sandinista Revolution Day (Día de la Revolución Sandinista)
Sep
Saturday, September 14, 20247Battle of San Jacinto (Batalla de San Jacinto)
Sunday, September 15, 20248Independence Day (Día de la Independencia)
Dec
Sunday, December 8, 20249Feast of the Immaculate Conception (Inmaculada Concepción)
Wednesday, December 25, 202410Christmas Day (Navidad)

Want to see and manage all holidays? Sign up for our free HRIS!

Effortless HR in Nicaragua: Take the Tour

Seamlessly Manage Your Workforce, from First Hire to Final Paycheck

Competitive benefits package in Nicaragua

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity”, which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

We are still busy building our own entity in Nicaragua, but our benefits packages for all countries are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

  • Dental Insurance

Taxes in Nicaragua

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Nicaragua.

  • 12.5% - 13.5%%

    Old Age, Disability & Survivors contributions

  • 1.5%

    Work Injury Contribution (plus 1.5% for war victims' pensions)

  • 6%

    Sickness & Maternity

Types of leave

Nicaraguan employees are entitled to 30 calendar days of paid leave after an entire year of employment. Workers who have been employed for up to six months but less than a year are entitled to 15 days off.

Employment termination

Termination process

Any decision to dismiss an employee must be approved by the Nicaraguan labor inspection authorities & the worker in question must be paid any accrued vacation and annual bonuses.

Notice period

Workers should be notified 15 days in advance before they’re dismissed.

Severance pay

Employees who’re dismissed without just cause are entitled to severance benefits calculated as one month’s salary for the first three years, plus 20 days wages for each following year.

Under Nicaraguan law, severance payments are capped at five months’ wages.

Probation periods

Nicaraguan law limits probations to 30 days and either party can end the employment agreement without notice.

Fair Pricing in Nicaragua

Contractor Management

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  • Create, edit, and sign tailored, localized contracts

  • Approve contractor invoices with one click or auto-pay

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  • Reduce costs by centralizing payroll management

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  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labor authority reporting handled for you

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Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app