Alba Luz Torres (Minister of Labor) has announced that a consensus was reached today in the triparty minimum wage negotiations and as a result has approved a 10% increase in the minimum wage as of the 1st of March 2023 and will be valid until February 29th, 2024 (a leap year).
Minimum wage discussions during the last few weeks took into account the country’s economic outlook as well as the development of employment opportunities. In addition, the cost of living increase affecting minimum wage workers as evidenced by the cost of the “Canasta Basica” (the Basic Basket), a fixed list of 53 domestic products and services used as a barometer on how inflation affects the standard of living of the lower income Nicaragua family.
The deal was signed by each member of the commission which included representatives from the government, unions and businesses. The next minimum wage commission will convene during the second week of January 2024.
This time last year, in 2022, the wage commission settled on a minimum wage increase of 7%.
Zona Franca
The only difference to the 10% increase across the board for all ten minimum wage categories is the zona franca (tax free zones) sector who have their own minimum wage contract which is currently in year one of a new five year contract. They receive increases as follows; 2023 – 8% (8,098 Córdobas), 2024 – 8% (8,746 Córdobas), 2025 – 7% (9,349 Córdoba’s), 2026 – 6.7% (9,986 Córdoba’s) and 2027 – 6.7% (10,656 Córdoba’s).
Working Week
For the purposes of calculating the monthly minimum wage (typically paid on the 15th and last day of the month), the “Standard Work Week” of 8 hours a day from Monday to Saturday for a total of 48 hours is used. These hours are worked between 6am and 8pm.
The Labor Code defines night workers as those working 7 hours per day anytime between 8pm and 6am the next day for a total of 42 hours per week and “mixed hours” as 7.5 hours per day of mixed days and night hours for a maximum of 45 hours weekly.
