Employer of Record & Payroll Services

Employing in Nicaragua

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

The Nicaraguan Constitution of 1987
The Labour 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.

Minimum wage

Effective January 1st, 2025, Nicaragua sets its minimum wage at 10,913.54 COR per month or 130,962.48 COR per year.

9 Public holidays

2025-01-01
2025-04-17
2025-04-18
2025-05-01
2025-07-19
2025-09-14
2025-09-15
2025-12-08
2025-12-25

New Year's Day (Año Nuevo)
Holy Thursday (Jueves Santo)
Good Friday (Viernes Santo)
Labor Day (Día del Trabajador)
Sandinista Revolution Day (Día de la Revolución Sandinista)
Battle of San Jacinto (Batalla de San Jacinto)
Independence Day (Día de la Independencia)
Feast of the Immaculate Conception (Inmaculada Concepción)
Christmas Day (Navidad)

Competitive benefits package in Nicaragua

Health Insurance

Vision Insurance

Mental health support

Pension or 401(K)

Life and Disability Insurance

Dental Insurance

Facts & Stats

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.

Capital City

Managua

Currency

Nicaraguan córdoba

Languages

Spanish , English

Population size

6,486,201

Ease of doing business

Medium

VAT - standard rate

15%

Grow your team in Nicaragua with Remote

Want to employ workers in Nicaragua? Companies hiring in Nicaragua are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.

Remote can employ team members in Nicaragua and keep you compliant. Remote can hire, onboard, and pay your Nicaragua team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Nicaragua. Sign up now to get started or talk to an expert for more details.

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.

Payroll

47

per employee/month

Powerful, transparent international payroll
Simple self-service platform
Personalised support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated payroll, expense management, and HRIS solution

Contractor Management

48

per contractor/month

Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localised contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility

Employer of Record

1155 989