Find your employer of record in Nicaragua

In essence, Visa-exempt nationals (Category A nationals) and visa nationals (Category B and C nationals) can enter Nicaragua for work. Indeed, the first can enter the country without an entry visa, stay for 90 days, and apply for an additional 90 days extension.

On the other hand, Category B nationals must apply for a visa at their Nicaraguan port of entry. Last, Category C nationals will require a Consulted Visa with authorization from the Immigration Department of Nicaragua. Therefore, their application process is often more extensive in time.

Furthermore, every foreign citizen in Nicaragua can perform work for less than one year using a Work Permit. Indeed, its length of validity depends on the time of his work activities in Nicaragua.

On the contrary, you will need a Temporary Residence is your work involves staying in Nicaragua as a foreign national for more than one year.

Finally, it is worth mentioning that you can renew your Temporary Residence in Nicaragua three times. After working for three years in Nicaragua, you can apply for permanent residence. Above all, it will allow you to stay in Nicaragua for up to five years.

In Nicaragua, the standard VAT rate is 15.00%.

Termination Process

Indeed, no employment laws in Nicaragua dictate how the termination process should be. Instead, it depends on employment agreements and collective agreements. Moreover, the reason for termination and the type of contract can also modify the termination process in Nicaragua.

Finally, your Nicaraguan employer can dismiss you only with permission from the labor inspection department. If it happens, he must pay your remaining vacation and annual bonus. 

Notice Period

In essence, it is mandatory for employees in Nicaragua to provide their employers with 15 days’ notice.

Severance Pay

Above all, employees in Nicaragua can receive severance pay of between one and five months of their wages.

Probation Period

Indeed, a payroll outsourcing company in Nicaragua uses a probationary period of 30 days. Furthermore, the employer and the employee can terminate the employment agreement for any reason during the probation period.

Paid Time Offs

In short, according to employment laws in Nicaragua, employees deserve paid time off depending on employee’s seniority:

• Fifteen days of paid leave for employees in Nicaragua with six consecutive months of employment.
• Thirty days of paid leave for workers from Nicaragua with between six months and one year of service.
• Fifteen additional days of paid leave for every six months of Nicaraguan employees in service.

Public Holidays

There are 10 national holidays throughout the year.

Vacation Holidays

There are 30 vacation holidays throughout the year.

Sick Days

In essence, employees in Nicaragua working for Employer of Record companies can get 26 weeks of paid sick leave.

Besides, workers from Nicaragua receive a sick day’s compensation of 60.00% of their regular wages from the fourth day of sickness. In other words, unless the employment contract stipulates it, they will not receive payment for the first three days of sick leave.

Last, payroll outsourcing companies in Nicaragua indicate that employers must pay sick leave’s first three days if the employee has a work-related illness or is in a Hospital.