Nicaragua
Capital: Managua
Currency: - NIO
Nicaragua Labor Law and Employment Policy Overview
Employment Law Overview
- Key Legislation:
- Labor Code
- Social Security Law
- Trade Union Law
- Legal Characteristics:
- Aims to protect employee rights and promote social justice
- Sets standards for minimum wage, working hours, vacations, and severance pay
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts
- Indefinite-term contracts
- Contractual Provisions:
- Must include details on job description, compensation, working hours, vacations, and termination conditions
- Language and Currency:
- Contracts must be written in Spanish
- Currency is the Nicaraguan córdoba (NIO)
Working Time Regulations
- Standard Working Hours:
- 48 hours per week
- Rest Days and Breaks:
- Minimum of 24 hours of rest per week
- 30-minute break after 4 hours of work per day
Vacation Policy
- Annual Leave:
- 15 days of paid annual leave for every 6 months of service
- Public Holidays:
- 10 statutory public holidays
- Special Leave:
- Sick leave: Up to 26 weeks
- Maternity leave: 12 weeks
- Paternity leave: 5 days
Employee Severance and Contract Termination
- Notice Period:
- Employer: 15 days
- Employee: 15 days
- Severance Pay:
- Minimum of 1 month's salary, up to 5 months' salary based on years of service
- Unfair Dismissal Protection:
- Employer must prove just cause for dismissal, or employee is entitled to compensation
Tax Laws
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Personal Income Tax:
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Salary Range (NIO) Tax Rate 0 - 100,000 0% 100,000 - 200,000 15% 200,000 - 350,000 20% 350,000 - 500,000 25% 500,000 and above 30%
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Social Security Contributions:
- Employer: 18.5%
- Employee: 6.35%
Health Insurance
- Insurance Policy:
- Employers are required to provide health insurance for employees
- Coverage:
- Basic medical services, medication, and hospitalization
Compensation and Benefits
- Minimum Wage:
- 4,286.33 NIO/month
- Salary Structure:
- Base salary, bonuses, allowances
Work Permits and Visas
- Permit Requirement:
- Foreigners require a work permit to work in Nicaragua
- Application Process:
- Submit an application to the Nicaraguan Immigration Office
- Provide documents such as passport, employment contract, and health certificate
Confidentiality and Non-Compete Clauses
- Enforceability:
- Confidentiality and non-compete clauses are enforceable in Nicaragua
- Common Provisions:
- Prohibit employees from disclosing confidential information after leaving employment
- Restrict employees from working for competitors after leaving employment
Training and Development
- Legal Requirements:
- Employers must provide safety training and skills development for employees
- Government Support:
- Government provides training subsidies and programs
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on race, gender, religion, or other protected characteristics
- Enforcement Measures:
- Employers must develop and implement anti-discrimination policies
Remote Work Policy
- Legal Framework:
- No specific legal framework for remote work in Nicaragua
- Tax and Insurance Implications:
- Remote work may impact tax and social security obligations