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 muddling through these areas alone, remember that Globalization Partners is here to help with Nicaragua compensation and benefits outsourcing. We can use our Nicaragua PEO to add your employees to our compliant payroll and benefits plan — all in a matter of a day or two. We’ll also take on all risk of compliance as the Employer of Record, 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 nine economic sectors. For example, as of March 1st, 2022, workers in the agricultural sector must make at least 4,723.25 Nicaraguan córdobas per month, while individuals in the financial sector have to earn at least NIO 10,571.78 per month.
Guaranteed Benefits in Nicaragua
We recommend starting your Nicaragua benefits management plan with statutory benefits for all employees. Nicaragua celebrates nine public holidays, and employees should get those days off with pay. Employees should also receive 15 calendar days of paid vacation every six months. Usually, this leave must be taken all at once unless the employee makes a different arrangement.
Female employees are entitled to four weeks of maternity leave before giving birth and eight 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 should disperse them along with statutory benefits as part of your Nicaragua benefits management plan.
Some common options include:
- 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, Globalization Partners can make your expansion easier by allowing you to use our existing subsidiary in Nicaragua. You won’t have to establish your own entity, and you can start working in a day or two. Paired with Nicaragua compensation and benefits outsourcing, you can run your company without worry about compliance.
Choose Globalization Partners Today
The team members at Globalization Partners are experts in global compliance that you can trust. Contact us today for more information about Nicaragua benefits and compensation outsourcing and our other expansion services.