* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Nicaraguan Córdoba (C$)


CST (GMT -6)

Employment Cost


Annual Leave

15 days

In-demand Specialties*
Agricultural Engineering & Agribusiness, Tourism & Hospitality, Healthcare

The Ultimate Guide to Hiring Employees in Nicaragua

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Nicaragua

Employing in Nicaragua requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Nicaragua with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Nicaragua quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Nicaragua, bordered by Honduras, the Caribbean, and Costa Rica, holds a strategic location for businesses aiming at North and South American markets.

With 90% bilingual population and time zone alignment with key American regions, international business operations have surged by 20% in five years.

The robust tourism industry, contributing 6.4% to GDP, reflects Nicaragua's rich folk heritage blending European, Caribbean, and Iberian cultures in music, cuisine, and architecture.

Employers find Nicaragua attractive due to competitive labor costs, approximately 30-50% lower than neighboring countries, offering significant benefits for hiring.


Fundamental Aspects of Employment in Nicaragua

In Nicaragua, contracts can be verbal for specific jobs or written as per the Labour Code. However, for legal validity in court, the contract must be translated into Spanish, even if originally in another language. Typical documents should include:

  • Identification of both parties
  • Commencement date
  • Job responsibilities and duties
  • Employee's compensation and extra benefits

Probationary Period in Nicaragua

In Nicaragua, there's a 30-day probation period during which either party can terminate the employment agreement for any reason.

Working hours in Nicaragua

The regular workweek in Nicaragua consists of 48 hours, with 8 hours per day. However, for night-time work, it is reduced to 45 hours per week, with 7.5 hours per day.

Overtime in Nicaragua

In Nicaragua, overtime is compensated at 200% of the regular salary for work beyond 48 hours a week. Employees are limited to 9 hours of overtime per week and must receive a 24-hour rest period for weekend or holiday work. Overtime should not exceed 3 hours per day or 9 hours per week as per employment contracts or agreements.

Navigating Key Aspects of Payroll in Nicaragua

Nicaragua has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

January 1st - December 31st

Fiscal Year in Nicaragua

January 1st - December 31st is the 12-month accounting period that businesses in Nicaragua use for financial and tax reporting purposes.

Payroll Cycle in Nicaragua

The payroll cycle in Nicaragua is usually Monthly, with employees being paid by the 15th of the month.
5,196.34 NIO p/h

Minimum Wage in Nicaragua

The minimum wage for employees in Nicaragua is typically 5,196.34 NIO per hour, amounting to ~27 NIO per month for a typical 48 hour work week.

Minimum wages and salaries in Nicaragua

The national minimum wage varies by industry. It starts at 5,196.34 NIO per month for agriculture and goes up to 11,628.95 NIO per month for construction, financial institutions, and insurance sectors.

Bonus Payments in Nicaragua

Employers are required to make a 13th-month payment, which involves paying an extra month's salary within the initial 10 days of December.

Comprehensive Overview of Employment Taxes in Nicaragua

Understanding the tax obligations for both employers and employees is crucial when operating in Nicaragua's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Nicaragua.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 24.5% on top of the employee salary in Nicaragua.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Nicaragua, the typical estimation for employee payroll contributions cost is around 7%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

In Nicaragua, income tax follows a 'Pay As You Earn' system with progressive rates ranging from 0% to 30%, depending on an individual's income.

Tax Rate Income Bracket

Pension in Nicaragua

In Nicaragua, the pension system is managed by the Nicaraguan Social Security Institute (INSS). Employees contribute a percentage of their salary to the INSS, and upon retirement, they receive pension benefits based on their contributions and years of service.The standard retirement age for the INSS pension is 60 for men and 55 for women.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Nicaragua tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Nicaragua

When it comes to terminating employment in Nicaragua, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Terminating an employee in Nicaragua depends on the employment and collective agreements, as well as the contract type and reason for termination. Employers need approval from the labour inspection department to dismiss an employee. After termination, the employee receives any outstanding vacation pay and their annual bonus.

Notice Period

In Nicaragua, employees must provide a 15-day notice to employers before termination, except during the probation period when no notice is required. Contracts of indefinite duration may include a trial period of up to 30 days, during which either party can end the employment without obligations. For indefinite contracts, employees can terminate by giving a written 15-day notice to the employer.

Severance Pay

In Nicaragua, unjustly dismissed workers receive severance pay calculated as one month's salary for the initial three years of service, followed by 20 days' wages for each subsequent year. However, according to Nicaraguan law, severance payments cannot exceed five months' wages.

Annual Leave Entitlements and Company Policies in Nicaragua

The annual leave entitlement in Nicaragua is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Nicaragua

Nicaragua has 10 recognised holiday in a year

Holiday Date

Paid Time Off in Nicaragua

Maternity Leave in Nicaragua

Paternity Leave in Nicaragua

Sick Leave in Nicaragua

Parental Leave In Nicaragua

Nicaragua's Benefits Built Into Playroll

Competitive benefits package in Nicaragua

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Nicaragua's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Nicaragua

Make your benefits package in Nicaragua a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Death Benefit
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Nicaragua

Social security contributions in Nicaragua are subject to annual increases. Typical employee benefits include:

  • Pensions
  • Supplementary health insurance
  • Life and disability insurance
  • Discounts at company stores
  • Transportation allowances
  • Meal allowances

Playroll allows you to provide localized benefits for employees in Nicaragua within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Nicaragua create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Nicaragua

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Nicaragua.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!