The National Minimum Wage Commission, together with the Ministry of Labor (MITRAB) has agreed on a 2025 minimum wage increase of 4% for 9 of the 10 employment categories.
The tenth sector is the Zona Franca (Tax Free Zones) employees with their own minimum wage contract in place which identifies an annual increase every January 1st for the 5 years which started in 2023.
According to government figures, the 2025 Minimum Wage Increase applies to some 260,000 workers in a variety of industries, typically entry level jobs or positions requiring little or no experience to carry out routine duties.
The average monthly minimum wage (of all ten categories) is now 8,936.23 Córdobas or US $244 (using the official Central Bank of Nicaragua exchange rate of 36.6243 Córdobas to one US Dollar).
By comparison, the average monthly wage for all ten categories (minimum and non-minimum) positions is 13,991.10 Córdobas or US $382. Source: Page 46 of the last available Central Bank Publication entitled “Nicaragua en Cifras 2023”.
Work Week
The minimum wage calculation uses the Labor Code Standard Work Week to calculate the monthly rate. The “Standard Work Week” is 8 hours a day from Monday to Saturday inclusive for a total of 48 hours (if worked between 6am and 8pm.
Night workers (those working 7 hours per day anytime between 8pm and 6am the next day) are limited to 42 hours per week.
Those working “Mixed Hours” means mixed days and night hours for a maximum of 7.5 hours per day or 45 hours weekly.
Pay Periods
Pay periods are not specified by the Labor Code but they are required to be included in the employment contract. As well, employers must provide each employee with an itemized pay statement which contains gross and net pay as well as deductions and any overtime payments.
Overtime
The number of overtime hours may not exceed three hours per day or nine hours per week. It is paid as double time.
