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Country hiring guide

Hiring in Nicaragua 🇳🇮

Young workforce; agriculture, textiles/maquila; lower-cost labor market. Employer on-costs run ~21.5-22.5% on top of gross salary. Here is what to know before your first Nicaragua hire.

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OverviewFacts & statsEmployer costsLeaveTermination
Capital cityManagua
CurrencyNicaraguan cordoba (NIO)
LanguagesSpanish (official); English & Miskito on Caribbean coast
Population~7 million
Payroll frequencyMonthly; 13th month (aguinaldo, December)
VAT standard rate15% (IVA)
Employer burden*~21.5-22.5% of gross
TGTC flat EOR fee$699/mo · Tier C
Overview

Employing in Nicaragua

Employment in Nicaragua runs under its national labour code, which sets the floor for wages, working hours, leave, and notice. Here are the essentials before you make an offer.

Minimum wage

  • NIO 5,950-13,316/month by sector (2025)
  • Varies by industry

Payroll cycle & extra pay

  • Monthly pay
  • Aguinaldo (13th) by early December

Public holidays

  • ~11 public holidays
  • Paid days off

Onboarding & probation

  • Probation up to 30 days
  • Indefinite contracts
Employer costs

What you pay on top of salary

Employer on-costs in Nicaragua run ~21.5-22.5% of gross salary. Employer INSS 21.5% (<=50 staff) or 22.5% (>50), plus INATEC 2%.

Employer contribution*Rate
INSS employer (<=50 staff)21.5%*
INSS employer (>50 staff)22.5%*
INATEC (training)2%*

Passed through at cost

These statutory costs are paid at cost on top of TGTC's flat $699/mo fee, so you always see the real employer cost, not a marked-up percentage.

Employee-side taxes

Employees pay their own income tax and social-security share, withheld at source. Under an EOR, TGTC runs that payroll withholding for you.

Types of leave

Statutory leave in Nicaragua

Annual leave

  • 30 days after one year
  • 15 days per 6 months worked

Maternity & parental leave

  • 13 weeks paid (2025)
  • INSS 60%, employer 40%

Sick leave

  • INSS covers after qualifying period*
  • Percentage of salary*

Other leave

  • Paid public holidays
  • Bereavement leave*
Employment termination

Ending employment in Nicaragua

Notice

  • Employee gives 15 days
  • Employer: just-cause process*

Severance

  • 1 month per year worked
  • Minimum 1, maximum 5 months

Probation

  • Up to 30 days
  • Either party may terminate

Contractor risk

  • Misclassification reclassifies as employee
  • Back pay/benefits owed

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Hire in Nicaragua without setting up an entity

TGTC employs your hire in Nicaragua on a compliant local contract, runs payroll and benefits, and passes statutory costs through at cost. One invoice, flat $699 per month.

Get a Nicaragua quote