Hire and pay employees in Nicaragua compliantly from day one

Easily hire employees in Nicaragua with Deel. Deel's best-in-class Employer of Record setup allows us to handle local laws, tax and benefits, and international payroll on your behalf in 150+ countries including Nicaragua.

Backed by local experts and built-in compliance protection, your next hire could start in as little as 5 days with Deel.

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Onboard, pay and manage employees in Nicaragua with Deel

Usually, to hire in Nicaragua, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, and licensing, can take months.

Now you can hire employees in Nicaragua quickly, easily and compliantly. Automate tax document collection, payroll, benefits, and more. And once your new hire is onboarded, Deel HR keeps their time off and documents in one place, so managing your team in Nicaragua doesn't mean a separate system.

Already have an entity in Nicaragua? Our PEO services can run payroll and compliance for your direct employees.

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Currency
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Capital
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Official language
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Payroll cycle Monthly

All the necessary benefits for Nicaragua built right in

Deel allows you to provide localised benefits for employees in Nicaragua within minutes. All from one manageable online dashboard in a single HR platform.

  • Pension
  • Public healthcare
  • Disability

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Our quick-start guide to hiring in Nicaragua

Navigate the tabs below to learn everything you need to know about hiring an employee in Nicaragua

Minimum Wage Requirements

The minimum wage in Nicaragua ranges from NIO 5,950.02 to NIO 13,315.61 per month depending on the economic sector.

Individual Income Tax

The individual income tax ranges from 0% to a maximum of 30%, based on net salary after Nicaraguan Institute of Social Security (INSS) deductions. Income tax is calculated according to progressive rates.

Gross Annual Income Applicable tax rate
Up to 100,000 NIC 0%
Up to 200,000 NIC 15% (when exceeding 100,000 NIC)
Up to 350,000 NIC 20% (when exceeding 200,000 NIC)
Up to 500,000 NIC 25% (when exceeding 350,000 NIC)
Over 500,000 NIC 30%

 

Payroll Cost

The employer cost is generally estimated at 25.10% of the employee's salary.

  • Nicaraguan Social Security Institute (INSS) - 22.50%

  • National Technological Institute (INATEC) - 2%

  • Employer liability cost — an administrative fee of 0.60% is applied to ensure ongoing worker compensation and liability coverage

Overtime Pay & Maximum Hours

Overtime payment is mandatory. Hours outside standard working hours are considered overtime, except where the employee is remediating or fixing an error or mistake they were responsible for. Employees can work a maximum of three hours of overtime per day or nine per week. Overtime must first be authorised by the employer. Employees cannot claim overtime if it was not agreed with the employer in advance.

Standard working hours are nine hours per day and 48 hours per week. The standard work week is Monday to Friday.

Hiring in Nicaragua, hassle-free

With Deel, your business can easily hire employees in Nicaragua with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything, from managing local laws and complex tax systems to running your payroll in Nicaragua and 150+ other countries.

Management fee
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Starting at

$599
/month
Estimated Employer Cost
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25.10%

of employee salary