COUNTRIES, North America
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HRsolution » COUNTRIES » Nicaragua

  1. Population

    Nicaragua has approximately 6.85 million inhabitants (as of 2023). The population is primarily composed of Mestizos (a mix of indigenous and European ancestry), with smaller groups of indigenous peoples, Afro-Nicaraguans, and descendants of Europeans.

  2. Capital

    The capital of Nicaragua is Managua. With around 1.2 million residents, it is the political, economic, and cultural center of the country.

  3. Economic Power

    Nicaragua is one of the poorest economies in Central America, although it has experienced steady economic growth. The main economic sectors include:

  • Agriculture (coffee, bananas, sugarcane, tobacco)
  • Tourism, which is gradually gaining importance
  • Textile production and assembly plants, particularly in free trade zones

The GDP per capita is about 2,200 USD. However, the economy faces challenges such as political instability, poverty, and unequal income distribution.

  1. Culture

    Nicaragua’s culture is a blend of indigenous, Spanish, and African influences. Spanish is the official language, while indigenous and Creole languages are spoken in certain regions. Music, dance, and literature are important parts of cultural life. The Fiestas Patronales, religious festivals in honor of the patron saints of towns, are central to Nicaraguan culture.

  2. Currency

    The official currency of Nicaragua is the Córdoba (NIO). 1 US dollar is approximately 36 NIO (as of 2023).

  3. Health Insurance and Social Security System

    Nicaragua has a public social security system (INSS), funded by contributions from employers and employees. It provides benefits for sickness, disability, maternity, work accidents, pensions, and disability. The healthcare system is public but often inadequately equipped, leading many Nicaraguans to rely on private healthcare services.

  4. Employer Costs

    Employers must contribute about 19% of the gross salary for employees’ social security, in addition to other possible levies and taxes. These costs cover health and pension insurance, as well as benefits for unemployment and maternity.

  5. Salary and Bonuses

    The minimum wage varies by sector and ranges between 7,000 and 10,000 NIO per month. Nicaragua has a system where employees are entitled to a 13th-month salary, known as the “Aguinaldo,” which is paid at Christmas.

  6. Payroll

    The payroll usually includes the gross salary, deductions for social security and taxes, as well as bonuses and other benefits. Employees in Nicaragua are required to contribute to INSS (social security), and there is a progressive income tax (IR) that is directly deducted from the salary.

  7. Public Holidays

    Public holidays in Nicaragua include:

  • New Year’s Day (January 1)
  • Good Friday (variable)
  • Labor Day (May 1)
  • Independence Day (September 15)
  • Battle of San Jacinto (September 14)
  • Christmas Day (December 25)

Additionally, there are religious holidays and local festivities in certain regions.

  1. Working Hours

    The legal working hours in Nicaragua are 48 hours per week. Overtime must be compensated with a surcharge, usually 50% of the normal hourly wage. Night work and work on holidays are also paid at higher rates.

  2. Vacation

    Employees are entitled to 15 days of paid vacation after one year of employment. There is also special leave for personal events such as weddings or the death of close relatives.

  3. Sick Leave

    In the event of incapacity for work, employees receive support from the social security system. Sickness benefits are paid by the INSS after a certain period and generally cover about 60% of the regular salary, depending on the duration of the illness and contributions made.

  4. Termination/Severance

    In the event of termination, employees in Nicaragua are entitled to severance pay, which depends on the length of service. The severance pay typically includes one month’s salary for each year of employment, and the notice period usually ranges from 15 days to one month.

In summary, Nicaragua offers a structured social security system, but wages are low compared to other Latin American countries. The country faces economic challenges, but efforts are being made to improve conditions for the workforce.

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