NICARAGUA PEO & EOR
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DID YOU KNOW
- Known as the ‘home of lakes and volcanoes’, one of the world’s most active volcanoes, the San Cristobal Volcano, can be found in Nicaragua.
- Nicaragua is the largest country in Central America and is slightly larger than the state of New York.
- Nicaragua has two coasts which both border different oceans. The Caribbean Sea can be found to Nicaragua’s east, and the Pacific Ocean to its west.
Nicaragua PEO Services
Home to some of the world’s most jaw-dropping landscapes
Working in Nicaragua
As of 2020, Nicaragua’s GDP stood at around $12.62bn. The nation’s primary industries include agriculture (bananas, sugar, coffee, beef, tobacco), tourism, banking, mining, fisheries and more.
Nicaragua has a population of around 6.5 million people, with its workforce composed of 3.2 million.
- Workers in Nicaragua may work either day or night shifts, a usual day shift is 8 hours over 48 hours in a week. Night shifts are usually 7 hours over 42 hours per week.
- Most employment contracts in Nicaragua are indefinite contracts, unless both parties agree on an alternative solution. If fixed term contracts expire, but employees continue working, then contracts are considered as indefinite.
- Total fringe benefits amount to 52% for companies with over 50 employees (social security of 22.5%), and 51% for companies with less than 50 employees (social security of 21.5%).
- All employees in Nicaragua must be registered in the Nicaraguan Social Security Institute (INSS), within 3 days of beginning their employment term.
- Some employers may choose to reimburse employees for unspent holidays however this is not mandatory. Employees are expected to use their allocated holiday days.
- All workers have the right to take 15 days holiday with full pay, for every six months of continuous service with the same employer. These days may be taken consecutively if the employee wishes.
- For each year of completed service, workers are entitled to a 13th month of salary.
- In Nicaragua, employers can terminate an employee’s contract without cause, however a severance payment must be paid (according to Article 45 of the Labor Code).
- Female employees are entitled to a maternity leave of a prenatal four weeks (depending on the expected birth date), and a postnatal eight weeks.
Nicaragua has a variety of public holidays in which employees are not required to work. Employees will still receive full salary benefits on these days.
Nicaragua’s public holidays include:
- January 1st (New Year)
- Maundy Thursday (Easter week)
- Good Friday (Easter week)
- May 1st (International Worker’s Day)
- July 19th (Commemoration of the Triumph of the Sandinista Revolution)
- September 14th (San Jacinto Battle)
- September 15th (Central America Independence Day)
- December 8th (Feast of the Immaculate Conception of Mary)
- December 25th (Christmas Day)
- Patron Festivities (2 days for Managua and 1 day for other cities)
Nicaragua is a pleasant place for foreign investors and expats to explore and set up home. It offers a high-quality lifestyle with an affordable cost of living. People in Nicaragua are generally very friendly and welcoming towards visitors, and around 73% of the population follow Roman Catholic faith.
As a previous Spanish colony, Nicaragua’s primary language is Spanish, and its general culture is very influenced by Spain. Iberian culture and Amerindian sounds and flavours are key elements of the Nicaraguan culture, and its capital city of Managua is home to a wealth of rich cultural experiences.
Nicaragua gained independence from Spain and joined the Central American Federation in 1821, alongside the other states of Costa Rica, El Salvador, Guatemala, and Honduras.