Hire and pay employees in Nicaragua, hassle-free
With Deel, your business can easily hire employees in Nicaragua. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries. The average onboarding time frame in the Nicaragua is 5 days with Deel.
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, tax, and HR laws, can take months.
Now you can hire employees in Nicaragua quickly, easily, and compliantly. Automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
Currency
Capital
Official language
Payroll cycle Monthly
All the necessary benefits for Nicaragua built right in
Deel allows you to provide localized benefits for employees in Nicaragua within minutes. All in one manageable online dashboard in a single HR platform.
- Pension
- Public Health Care
- Disability
Our quickstart 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 to NIO 13,315.61 per month depending on economic sector.
Individual Income Tax
The individual income tax ranges from 15% and goes up to the 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 200,00 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 24.50% of the employee salary
- Nicaraguan Social Security Institute (INSS) - 22.50%
- National Technological Institute (INATEC) - 2%
Overtime Pay & Maximum Hours
Overtime payment is mandatory. Hours outside of standard work hours are considered overtime with the exception that the employee is remediating or fixing an error or mistake that they were responsible for. Employees can work a maximum of 3 hours of overtime per day or 9 per week. Overtime must first be authorized by the employer. Employees cannot claim overtime if it was not priorly agreed with the employer.
Standard working hours are 9 hours per day and 48 hours per week. The standard work week is from 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, complex tax systems, or your payroll in Nicaragua and 150+ countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
24.50%
of employee salary