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%

What Are The Standard Working Hours In Nicaragua?

An employee whose age is 17 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 workday is capped at 8 hours and the standard workweek at 48 hours for adult employees. Night work is limited to 7 hours per day and 42 hours per week, while mixed shifts that include both day and night hours are limited to 7.5 hours per day and 45 hours per week. You must structure schedules so that these statutory limits are not exceeded without triggering overtime.

Collective bargaining agreements or internal policies may set lower daily or weekly limits, and in that case you must comply with the more favorable standard. Any extension of the workday must be exceptional, justified by temporary business needs, and compensated as overtime. You are required to keep accurate time records to demonstrate compliance with daily and weekly limits in the event of an inspection or dispute.

Industry-Specific Exceptions

Companies hiring in sectors like healthcare, transportation, manufacturing, or hospitality may be subject to special scheduling rules. In Nicaragua, these sectors often operate on continuous or shift-based schedules, but the legal daily and weekly limits still apply on average. You may use rotating shifts or compressed schedules only if the total hours respect the statutory caps and overtime is correctly paid.

  • Healthcare professionals may work 12-hour shifts with extended rest periods.
  • Transport workers must comply with EU-aligned rest and driving limits.
  • Manufacturing and security staff often rotate through night or weekend shifts.

Even in these sectors, you must ensure the average weekly limit is respected over a reference period. In Nicaragua, labor authorities may scrutinize long-shift arrangements, so you should document shift patterns, rest periods, and overtime calculations carefully.

Managerial And Exempt Employees

In Nicaragua, senior managers, administrators, and employees who represent the employer’s interests may be partially exempt from strict scheduling rules, but they are not automatically excluded from all working-time protections. The law focuses on whether the employee has real decision-making authority, flexible hours, and higher compensation that already reflects extended availability. You should define these conditions clearly in the employment contract.

Even for exempt or managerial staff, you must avoid schedules that endanger health or safety and respect minimum daily and weekly rest. If you expect managers to work beyond the standard 48-hour week on a regular basis, you should either pay overtime at the statutory rates or provide a clearly quantified salary premium that reasonably compensates for the additional hours. Written policies should explain how working time is tracked and how any additional compensation is determined.

Statutory Full-Time Working Hours In Nicaragua

Statutory full-time work in Nicaragua is generally understood as 8 hours per day and 48 hours per week for daytime schedules. For night work, full-time is 7 hours per day and 42 hours per week, while mixed shifts are full-time at 7.5 hours per day and 45 hours per week. Any hours beyond these thresholds are considered overtime and must be compensated accordingly.

You may agree to part-time arrangements with proportionally reduced hours and pay, provided that part-time employees are not scheduled beyond their agreed limits without overtime pay. Flexible or variable-hour contracts are permitted, but you must still respect maximum daily and weekly limits and ensure that employees receive the same basic protections as full-time staff on a pro rata basis.

Overtime Regulations In Nicaragua

In Nicaragua, you must pay overtime whenever employees work beyond the statutory daily or weekly limits, and you are responsible for tracking those hours accurately. Time records, payroll documentation, and written authorizations for overtime should be maintained to demonstrate compliance in case of inspections or disputes. Failure to comply with overtime rules can lead to back-pay orders, fines, and potential litigation.

What Counts As Overtime In Nicaragua?

Overtime in Nicaragua is generally any time worked beyond 8 daytime hours, 7 night hours, or 7.5 mixed hours in a day, or beyond 48 daytime hours, 42 night hours, or 45 mixed hours in a week. Work performed on the employee’s weekly rest day, typically Sunday, is also treated as overtime and must be paid at the applicable premium rate. Work on official public holidays is considered overtime regardless of weekly totals and attracts a higher statutory rate.

Overtime must be exceptional and not a permanent substitute for proper staffing. You should obtain prior authorization for overtime, communicate expectations clearly to employees, and ensure that overtime is recorded separately from regular hours. Employees cannot validly waive their right to statutory overtime premiums, even by written agreement.

Maximum Overtime In Nicaragua

Under Nicaraguan law, overtime is capped at 3 hours per day and 9 hours per week per employee, meaning total working time should not exceed 11 hours in a single day or 57 hours in a week for daytime schedules. These caps apply across all types of work, and you must organize staffing so that operational needs are met without systematically exceeding these limits. Overtime beyond these caps is prohibited, even if the employee consents.

In exceptional circumstances such as emergencies or force majeure, temporary deviations may be tolerated, but you should seek guidance from the Ministry of Labor and document the justification carefully. You should not rely on emergency exceptions as a routine staffing strategy, and repeated breaches of the 3-hours-per-day or 9-hours-per-week overtime limits can trigger inspections, fines, and orders to adjust schedules. Internal policies should restate these numerical caps so supervisors understand the legal boundaries.

Overtime Payout Rates In Nicaragua

In Nicaragua, regular overtime worked on ordinary working days must be paid at a minimum of 200% of the employee’s regular hourly wage, that is, 2.0x the normal rate. Work performed on the employee’s weekly rest day, typically Sunday, must also be paid at least 200% of the regular rate. You should calculate the overtime rate based on the employee’s full ordinary remuneration, including fixed salary components.

Overtime worked on official public holidays must be paid at a minimum of 250% of the regular hourly wage, or 2.5x the normal rate. If an employee both works overtime and loses their rest day due to a holiday shift, you must apply the higher applicable premium and, where required, grant a substitute rest day. Your payroll system should be configured to distinguish between ordinary overtime at 2.0x and holiday overtime at 2.5x to avoid underpayment.

Rest Periods And Breaks In Nicaragua

In Nicaragua, employees typically work up to 8 hours per day and 48 hours per week in daytime schedules, and rest periods and breaks are designed to protect health within these limits. During longer shifts, workers are entitled to a meal break and must also receive sufficient daily and weekly rest away from work. As an employer, you must integrate these breaks into your scheduling so that total working time and rest entitlements remain compliant.

  • Meal Break: In Nicaragua, employees who work more than 6 consecutive hours must receive at least a 30-minute uninterrupted meal break. This break should be scheduled roughly in the middle of the work period and must not be replaced by additional pay.
  • Daily Rest: Employees are entitled to a minimum daily rest period of 10 to 12 consecutive hours between shifts, depending on whether they work day, night, or mixed schedules. You should avoid back-to-back shifts that reduce this rest window below the statutory minimum.
  • Weekly Rest: Nicaraguan law guarantees at least one full day of rest per week, typically Sunday, which should be 24 consecutive hours. If operational needs require Sunday work, you must provide a substitute rest day and pay the applicable overtime premium.
  • Minors: Workers under 18 in Nicaragua have shorter maximum working hours and must receive adequate rest and breaks tailored to their age. You should avoid scheduling minors for night work or long shifts that could interfere with their education or health.
  • Employer Duty: Employers in Nicaragua are responsible for organizing work so that statutory breaks and rest periods are actually taken, not just written into policy. Timekeeping systems, rosters, and supervisory practices should all support compliance with meal, daily, and weekly rest requirements.

Night Shifts And Weekend Regulations In Nicaragua

Night and weekend work are legal in Nicaragua but subject to additional employer responsibilities and employee protections. You must pay attention to reduced maximum hours for night work, appropriate premiums where applicable, and the preservation of weekly rest. Poorly managed night and weekend schedules can increase health risks and legal exposure.

Night work in Nicaragua is generally defined as work performed between 8:00 p.m. and 6:00 a.m., and employees working predominantly within this window are considered night workers. For these workers, the standard workday is reduced to 7 hours and the workweek to 42 hours, and any excess must be treated as overtime. You should identify roles that regularly fall into this time window and ensure their contracts and schedules reflect night-work rules.

  • Premium Pay: Nicaraguan law does not establish a specific statutory percentage premium solely for night work, but any hours beyond 7 per night or 42 per week must be paid as overtime at 200% of the regular rate, or 2.0x. Many employers also grant a contractual night differential of 10%–25% on top of base pay to attract and retain night-shift staff.
  • Health Monitoring: While there is no detailed statutory schedule for medical checks, Nicaraguan occupational safety rules require you to protect workers whose health may be affected by night work. Regular health assessments, fatigue management policies, and safe transport arrangements are recommended for employees who frequently work between 8:00 p.m. and 6:00 a.m.
  • Workplace Restrictions: Minors under 18 are generally prohibited from night work in Nicaragua, especially in hazardous environments. Pregnant workers should be reassigned away from night shifts where medically indicated, and you must consider reasonable accommodations to avoid health risks.

Weekend work, particularly on Sunday, is treated as work on the weekly rest day in Nicaragua and must be compensated at a minimum of 200% of the regular wage, or 2.0x, plus a substitute rest day. You should plan staffing so that Sunday work is rotational and not imposed on the same employees every week unless they agree and are properly compensated.

How Playroll Simplifies Employer Responsibilities And Compliance

Expanding your workforce across international borders is an exciting step, but it can be challenging to keep up with ever-changing local labor laws and regulations in different countries. That’s the advantage of using an Employer of Record like Playroll.

  • Scale Your Global Team: Legally hire and swiftly onboard new hires in 180+ regions without the red tape by offloading HR administration to Playroll. This helps you explore new markets faster and stay focused on growth.
  • Stay Compliant: Built-in compliance checks and vetted contracts help ensure your agreements meet local legal requirements for working hours, overtime regulations, and more. This reduces risk as rules change across jurisdictions.
  • Pay Your Team Accurately: Pay international employees and global contractors on time, every time, while centralizing your global payroll processes. This supports consistent, reliable payroll operations as you scale.

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 adult employees are 8 hours per day and 48 hours per week for daytime work. For night work, the limit is 7 hours per day and 42 hours per week, and for mixed shifts it is 7.5 hours per day and 45 hours per week. Any hours beyond these thresholds are considered overtime and must be paid at the applicable premium rates.

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

In Nicaragua, overtime is limited to a maximum of 3 hours per day and 9 hours per week per employee. This means that, for daytime schedules, total working time should not exceed 11 hours in a single day or 57 hours in a week. Exceeding these numerical caps is prohibited even with employee consent and can lead to sanctions from the labor authorities.

How is overtime pay calculated in Nicaragua?

Overtime pay in Nicaragua is calculated as a multiple of the employee’s regular hourly wage. Overtime worked on ordinary working days and weekly rest days such as Sunday must be paid at a minimum of 200% of the regular rate, or 2.0x. Overtime worked on official public holidays must be paid at a minimum of 250% of the regular rate, or 2.5x, and you should base these calculations on the employee’s full ordinary remuneration.

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

Employers in Nicaragua who violate working-hour laws may be ordered to pay back wages for unpaid or underpaid overtime, including the correct statutory premiums. The Ministry of Labor can also impose administrative fines, require corrective measures to schedules and timekeeping practices, and in serious or repeated cases may initiate legal proceedings that increase financial and reputational risk. Non-compliance can also affect the validity of dismissals and expose employers to additional claims for damages from affected employees.