Nicaragua Public Holiday Regulations
In Nicaragua, most national public holidays are treated as paid rest days, with additional premium pay if employees work. A few holidays are regional or municipal, and substitute days may be declared by the government when holidays fall on weekends, so you should always confirm the official calendar for 2026; there are typically around 10–12 national holidays in a year, but the exact number and observed days can vary.
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List of Public Holidays in Nicaragua (2026)
Nicaragua’s official public holiday calendar is set by national law and government decrees, and some dates can shift slightly each year. The table below lists the main national holidays that are typically observed in Nicaragua; always confirm against the official government calendar for 2026, especially for movable religious holidays and any additional decreed days off.
Do Employers Have to Provide Paid Leave on Public Holidays?
Yes, Nicaraguan labor law generally requires employers to treat official public holidays as paid rest days for employees, provided the day is a normal working day for the employee. Employees who do not work on a public holiday are typically entitled to their regular daily wage without any reduction. Where a holiday falls on a non‑working day, there is usually no additional paid day off unless the government specifically decrees a substitute day, which can happen around major holidays or for tourism purposes, so you should always review the official 2026 decrees.
If your employees must work on a public holiday, Nicaraguan law typically requires premium pay in addition to the normal salary. The common practice is to pay at least double pay for hours worked on a mandatory public holiday, but you should confirm the exact rate and any sector‑specific rules with local counsel or the latest regulations. Part‑time and full‑time employees are usually treated proportionally: if the holiday falls on a day they would normally work, they should receive paid time off or the applicable premium if they work.
Some holidays, such as the Fiesta of Santo Domingo, are municipal holidays that apply mainly in Managua. For employees based outside Managua, those days may be treated as regular working days unless a local ordinance or company policy states otherwise. For distributed teams, you should align each employee’s public holiday entitlement with the location of their employment contract and workplace, not just your head office calendar.
Legal Penalties for Not Providing Paid Holiday Leave
Failure to respect public holiday rights in Nicaragua can expose your company to labor inspections, administrative fines, and back‑pay obligations. The Ministry of Labor (Ministerio del Trabajo, MITRAB) is the main enforcement authority and can investigate complaints, review payroll records, and order corrective measures if it finds that employees were underpaid or denied their holiday rest.
Typical consequences include payment of any unpaid holiday wages, premium pay for hours worked on holidays, and potential surcharges or penalties set by labor regulations. In more serious or repeated cases, authorities may impose higher fines or additional sanctions, and disputes can escalate to labor courts, increasing legal costs and reputational risk for your company.
Common employer mistakes include treating national holidays as unpaid leave, failing to apply premium pay when staff work on holidays, not distinguishing between national and municipal holidays, and applying a single global holiday calendar to Nicaraguan employees. To reduce risk, keep clear written policies, maintain accurate time and attendance records, and regularly compare your practices with current MITRAB guidance.
How Do Holidays Affect Overtime Thresholds?
In Nicaragua, public holidays interact with overtime rules mainly through premium pay and daily or weekly hour limits. Hours worked on an official public holiday are generally compensated at a higher rate than ordinary hours, and they may also count toward weekly overtime thresholds. If an employee exceeds the standard maximum working hours in a week because they worked on a holiday, those excess hours can trigger both overtime and holiday premiums, depending on the circumstances.
In practice, many employers treat holiday work as a separate category with its own premium rate, and then assess whether any additional overtime premium is due on top of that. Because the exact calculation method and percentages can vary by sector, collective agreement, or updated regulation, you should confirm with local legal counsel or a trusted payroll provider how to structure pay for hours that are both overtime and holiday work.
For compliance, your company should clearly flag holiday hours in your time‑tracking system, distinguish them from regular overtime, and ensure your payroll rules reflect the correct multipliers. This is especially important for shift‑based operations, hospitality, retail, and essential services, where holiday work is common.
Stay 100% Compliant with Leave Regulations Using Playroll
Managing Nicaraguan public holidays alongside multiple other country calendars can quickly become complex, especially when you factor in municipal holidays, changing government decrees, and premium pay rules. Playroll helps you simplify this by combining local expertise with automated, compliant payroll and leave management.
When you hire in Nicaragua through Playroll, our in‑country specialists track official public holidays, monitor changes announced by the government, and configure your employees’ entitlements accordingly. Your team sees the correct local holidays in their calendars, and your payroll automatically reflects paid rest days, holiday work premiums, and any applicable overtime, without you having to interpret local regulations yourself.
Playroll also supports mixed teams across multiple Nicaraguan locations and other countries, so each employee’s holiday schedule is aligned with their work location and contract, not a one‑size‑fits‑all global calendar. You keep full visibility and control through a single platform, while we handle the complexity of local labor rules, statutory benefits, and payroll calculations.
If you are planning to hire or expand in Nicaragua, Playroll can help you:
• Hire employees compliantly without setting up a local entity
• Apply the correct Nicaraguan public holidays and leave rules automatically
• Calculate holiday and overtime premiums in line with local practice
• Reduce the risk of fines, back‑pay claims, and disputes with employees
• Give your finance and HR teams clear, consolidated reporting across countries
By partnering with Playroll, you can focus on building your Nicaraguan team while we keep you aligned with local holiday and leave regulations, now and as they evolve.

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