Figuring out the right level of compensation and benefits to provide employees can be a challenging task, even in your native country. Trying to put together a Nicaragua benefits management plan and meet the country’s compensation laws is even more difficult when you’re not familiar with the various taxation, labor, and employment compliance laws.
Instead of navigating these areas alone, G-P is here to help with Nicaragua compensation and benefits administration. Our Employer of Record (EOR) solutions assure compliant benefits administration, so you can run your company without any additional stress.
Nicaragua compensation laws
Nicaragua does not have a national minimum wage. Instead, the country’s compensation laws dictate a minimum wage that ranges across the country’s 9 economic sectors.
Guaranteed benefits in Nicaragua
Nicaragua celebrates 9 public holidays, and employees should get those days off with pay. Employees should also receive 15 calendar days of paid vacation every 6 months. Usually, this leave must be taken all at once unless the employee makes a different arrangement.
Female employees are entitled to 4 weeks of maternity leave before giving birth and 8 weeks after. As the employer, you pay 40% of this leave, and the Social Security Institute covers the other 60%. If the employee isn’t eligible for social security, you’re responsible for paying for the full leave.
Nicaragua benefits management
One of the best ways to encourage greater retention rates and keep employees happy is by providing additional benefits. While these supplemental benefits are not required by law, you may want to consider dispersing them along with statutory benefits as part of your Nicaragua benefits management plan.
Some common options include:
- Pensions.
- Additional health insurance.
- Life and disability insurance.
- Discounts to company stores.
- Transportation allowances.
- Meal allowances.
Restrictions for benefits and compensation
You can’t provide benefits and compensation — or even hire employees — until you establish a subsidiary in Nicaragua. However, the incorporation process can take up to a few months and delay your operations for up to a year if you’re not completely compliant.
Fortunately, G-P can make your expansion easier by eliminating the need to establish your own entity. That means you can begin operations in the new country quickly and run your company confidently and compliantly.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading global employment platform is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.