Working Hours and Overtime in Nicaragua

In Nicaragua, it’s important to adhere to employment laws surrounding working hours and overtime regulations to remain compliant and boost employee satisfaction. Learn more about standard working hours, overtime regulations and employer responsibilities in Nicaragua.

Iconic landmark in Nicaragua

Capital City

Managua

Currency

Nicaraguan Córdoba

(

C$

)

Timezone

CST

(

GMT -6

)

Payroll

Monthly

Employment Cost

11.05%

In Nicaragua, your company must comply with working hour and overtime laws – including daily limits, overtime thresholds, and rest requirements – to stay compliant and build a strong employee experience.

Looking ahead to 2026, enforcement of working-time rules in Nicaragua is expected to focus increasingly on accurate timekeeping, transparent overtime practices, and the protection of vulnerable groups such as minors and night workers. Employers should ensure that contracts, internal policies, and payroll systems are aligned with statutory limits, that managers are trained on scheduling rules, and that any flexible or remote work arrangements still respect maximum hours and rest entitlements. Proactive compliance will reduce the risk of inspections, fines, and disputes, while supporting employee well-being and retention.

  • Standard Working Hours
  • Overtime Thresholds
  • Overtime Pay Rates
  • Daily And Weekly Rest Requirements
  • Night Work Restrictions
  • Penalties For Non-Compliance

What Are The Standard Working Hours In Nicaragua?

An employee whose age is 16 or younger has a maximum of 6 hours per day and 30 hours per week. An employee whose age is 18 or older is allowed to work 48 hours per week. A minimum meal interval of 30 minutes must be observed by employees who work more than 6 hours in a day. In typical working hours, Monday through Friday, the hours are 8:00 to 17:00.

Maximum Working Hours In Nicaragua

Under Nicaraguan labor law, the standard daytime workweek is capped at 48 hours, typically spread over six days at 8 hours per day. Daytime work is generally defined as work performed between approximately 6:00 and 20:00, while night work – performed during designated night hours – is subject to a reduced weekly limit, commonly 42 hours per week, due to the additional strain associated with night shifts. Mixed shifts that include both day and night hours are usually limited to 45 hours per week. You should structure schedules so that employees do not exceed these statutory limits, except where clearly permitted as overtime and properly compensated.

For minors, stricter limits apply. Employees aged 16 or 17 are generally limited to 6 hours per day and 30–36 hours per week, and they are prohibited from night work and hazardous activities. You must verify age documentation and ensure that scheduling systems flag any attempt to assign minors to hours that exceed these thresholds.

Industry-Specific Exceptions

  • Continuous Process Manufacturing And Industrial Operations
  • Hospital, Health Care, And Emergency Services
  • Hospitality, Tourism, And Restaurant Services
  • Agriculture, Livestock, And Seasonal Harvest Work
  • Transportation, Ports, And Logistics Services
  • Security, Surveillance, And Guard Services

Managerial And Exempt Employees

Senior managers, directors, and employees who exercise broad decision-making authority may be treated differently for scheduling purposes, but they are not automatically exempt from all working time protections. Nicaraguan law generally expects that even managerial staff should not be subjected to excessive hours that endanger health and safety. In practice, managers may have more flexible schedules and may not receive overtime in the same way as hourly workers, provided their higher salary and responsibilities are clearly documented in the employment contract.

To reduce risk, you should clearly classify employees as managerial or non-managerial based on their actual duties – not just job titles – and specify in writing whether their compensation is intended to cover reasonable additional hours. Where there is doubt, it is safer to apply standard working-hour limits and overtime rules, and to maintain accurate time records even for managers.

Statutory Full-Time Working Hours In Nicaragua

Full-time employment in Nicaragua is generally understood as the standard 48-hour daytime workweek. Employees who regularly work this schedule are considered full-time and are entitled to the full range of statutory benefits, including paid annual leave, social security contributions, and public holiday entitlements. Part-time employees work fewer hours than the statutory full-time threshold, and their benefits are usually prorated according to hours worked.

When designing roles, you should define the normal weekly hours in the employment contract, indicate whether the role is daytime, night, or mixed shift, and specify any flexibility in scheduling. If you intend to operate compressed workweeks or rotating shifts, ensure that the average hours over the relevant reference period do not exceed the statutory limits and that employees still receive the required daily and weekly rest.

Overtime Regulations In Nicaragua

What Counts As Overtime In Nicaragua?

Overtime in Nicaragua generally refers to any working time performed beyond the statutory limits for the relevant type of schedule – typically more than 8 hours per day or 48 hours per week for daytime workers, more than the reduced weekly limit for night workers, or beyond the cap for mixed shifts. Work performed on weekly rest days or public holidays is also treated as overtime or as specially compensated work, even if the employee has not exceeded the weekly limit.

Overtime must be exceptional, justified by business necessity, and agreed to by the employee, except in genuine emergencies. You should obtain written or electronic consent where possible, define overtime procedures in internal policies, and ensure that supervisors do not informally pressure employees to work beyond their scheduled hours without proper authorization and recording.

Maximum Overtime In Nicaragua

Nicaraguan labor law places strict limits on the amount of overtime that can be required. As a general rule, employees should not work more than 3 hours of overtime per day and no more than 9 hours of overtime per week, and total daily working time – regular hours plus overtime – should not exceed 11 hours. These limits are designed to protect employee health and safety and to prevent chronic overwork.

In exceptional circumstances, such as force majeure, accidents, or urgent repairs, temporary deviations may be allowed, but you must be able to demonstrate the necessity and document the reasons. You should implement approval workflows for overtime, monitor weekly totals, and ensure that employees who regularly approach the maximum overtime limits are reviewed for workload and staffing adjustments.

Overtime Payout Rates In Nicaragua

Overtime hours in Nicaragua must be paid at a premium rate over the employee’s regular hourly wage. Daytime overtime is typically paid at 150% of the normal rate (time-and-a-half). Night overtime, overtime on weekly rest days, and work on public holidays may attract higher premiums – often 200% of the normal rate or more – depending on the circumstances and any applicable collective bargaining agreements.

To calculate overtime pay, you should first determine the employee’s regular hourly rate by dividing the monthly salary by the legal divisor used in Nicaragua for full-time work. Then apply the appropriate multiplier to each overtime hour according to when it was worked (day, night, rest day, or holiday). Clearly itemize overtime hours and rates on payslips, retain supporting time records, and ensure that any alternative arrangements – such as time off in lieu – are expressly permitted by law and documented in writing.

Rest Periods And Breaks In Nicaragua

Employees in Nicaragua typically work up to 8 hours per day and 48 hours per week, and the law links rest periods and breaks directly to these limits to protect health and safety. During the working day, employees who work more than a set number of consecutive hours must receive a meal break, and between working days they are entitled to a minimum daily rest period. In addition, employees must receive a full weekly rest day, usually on Sunday, and special protections apply to minors and night workers. As an employer, you must design schedules, shift rotations, and overtime practices so that these daily and weekly rest entitlements are always respected.

  • Meal Break Requirements
  • Daily Rest
  • Weekly Rest
  • Minors
  • Employer Duties

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jaime Watkins

Jaime is a content specialist at Playroll, specializing in global HR trends and compliance. With a strong background in languages and writing, she turns complex employment issues into clear insights to help employers stay ahead of the curve in an ever-changing global workforce.

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FAQs About Working Hours in Nicaragua

What are the legal working hours in Nicaragua?

In Nicaragua, the standard legal working hours for daytime work are generally up to 8 hours per day and 48 hours per week, usually spread over six days. Night work and mixed shifts are subject to lower weekly limits because of the additional strain associated with those schedules. Minors face stricter limits, typically no more than 6 hours per day and a reduced weekly total, and they are barred from night work and hazardous tasks. Employers must define normal working hours in the employment contract, respect the statutory caps, and provide the required daily and weekly rest periods.

What is the maximum number of overtime hours allowed in Nicaragua?

In Nicaragua, overtime is intended to be exceptional and is capped. As a general guideline, employees should not work more than 3 hours of overtime per day and no more than 9 hours of overtime per week, and total daily working time should not exceed 11 hours. These limits apply in addition to the standard weekly working-hour caps for daytime, night, and mixed shifts. Any overtime should be justified by business necessity, agreed with the employee, properly authorized, and accurately recorded. Exceeding these limits can expose employers to sanctions and claims for unpaid wages or damages.

How is overtime pay calculated in Nicaragua?

Overtime pay in Nicaragua is calculated by first determining the employee’s regular hourly rate, usually by dividing the monthly salary by the legal number of hours in a full-time workweek. Daytime overtime is typically paid at 150 percent of the regular hourly rate (time-and-a-half). Overtime worked at night, on weekly rest days, or on public holidays is usually paid at higher premium rates, often around 200 percent of the regular rate, subject to specific legal rules and any applicable collective agreements. Employers must track overtime hours by type (day, night, rest day, holiday), apply the correct multiplier to each category, and itemize overtime payments clearly on payslips.

What are the penalties for employers who violate working-hour laws in Nicaragua?

Employers in Nicaragua who violate working-hour laws can face a range of consequences, including orders from the labor inspectorate to correct unlawful schedules, pay outstanding wages and overtime premiums, and adjust internal policies. Financial penalties and administrative fines may be imposed for serious or repeated breaches, particularly where excessive hours or lack of rest endanger employee health and safety. Employees may also bring claims for unpaid overtime, damages, or termination with cause if violations are severe. In extreme cases, persistent non-compliance can lead to reputational damage, increased scrutiny from authorities, and potential suspension of operations until corrective measures are implemented.