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Under Nicaragua's law, all employees are entitled to 15 days of vacation for every 6 months of uninterrupted work with the same employer. Annual leave is paid at the standard wage rate of the employee.

Persons who work for the State and its institutions have the right to enjoy holidays with full salary from Saturday Ramos through Easter Sunday, from December 24 through January 1, and 16 more days during the year.

Employers are obligated to prepare the vacation schedule and share it with their employees. The employee has the right to choose which holidays to take following the above schedule.

In the case of the labor contract termination, the employee has the right to be paid wages for the unused annual leave in proportion to the time worked.

There is no statutory sick leave under the Labor Code of Nicaragua. Employment contracts and work policies govern short-term sick leave. Pending the internal company practice, a worker can be granted permission to leave due to sickness or attend a personal medical consultation. Interruption of work due to illness does not affect the right to annual leave.

Insured employees are entitled to a sickness benefit paid for 52 weeks as 60% of eight weeks' average wage. The National Unified Health System provides this benefit from the fourth day of sickness. The first three days are unpaid, except in cases of illnesses that require hospitalization or accidents (the benefit is paid starting with the first day).

Under Nicaragua's law, female employees are entitled to 4 weeks of rest before and 8 weeks after the delivery of their child (10 weeks in the case of multiple births). If delivery occurs before the date indicated by the doctor, the unused leave is added to the postnatal rest period.

Employees who have paid at least 16 weekly contributions towards social security within 39 weeks preceding the presumed delivery date are entitled to maternity allowance from the National Unified Health System. The maternity allowance is equal to 60% of the average weekly remuneration. The employer is obligated to pay the remaining 40% of the employee's average weekly remuneration. If the employee is not insured by the state social insurance system, the employer is obligated to pay the employee's entire average weekly remuneration during maternity leave.

Under Nicaraguan law, the father or partner in a notarized union with their spouse is entitled to 5 calendar days of leave with pay and without loss of any social benefits in the event of their partner's childbirth.

Pension

In Nicaragua, all employees who enter the labor force are subject to compulsory affiliation with the Pension Savings System after 15 days of employment. The legal retirement age is 60 years, and employees with 750 weeks of contributions are entitled to an old-age pension. The retirement age for teachers is 55 years, with 750 weeks of contributions. The retirement age for employees working in mines is 55 years, provided they have worked there for at least 15 years.

Monthly old-age pension is calculated as monthly base remuneration multiplied by a replacement rate. Monthly base remuneration is the average remuneration over the last 375 weeks of contributions multiplied by the factor of 4.33. The replacement factor is calculated based on the number of years of contributions made, and the maximum replacement factor is 70%. The total maximum pension with family allowances is 100% of the respective base salary and is equivalent to USD 1,500 per month (in Nicaraguan cordobas) on the pension payment date.

Dependents/Survivors Benefits

The death insurance provided by the Social Security Law of Nicaragua covers the basic needs of the dependents and survivors of a deceased insured employee. Benefits for survivors include funeral expenses and pensions. Spouses, children, and dependent parents are eligible for benefits.

In case of death due to non-occupational causes, the pension is granted if the insured employee had paid contributions for at least 150 weeks within the last six years preceding death. In case of death due to occupational accidents or diseases, the pension is calculated in the same manner, but the qualifying condition of 150 weeks of contributions is not required.

Pension is paid as follows:

• Eligible widow or widower - 50% of the pension received by the deceased (or what they would have been entitled to), excluding family allowances.
• Eligible children - 25% of the pension received by the deceased (or what they would have been entitled to), excluding family allowances.
• Parents over age 60 or disabled, in the absence of spouse and children - 25% of the pension received by the deceased (or what they would have been entitled to), excluding family allowances.

Invalidity Benefits

Invalidity benefits in Nicaragua cover insured persons' and their dependents' basic needs in the event of an illness or accident of non-occupational origin and promote their rehabilitation and re-entry in the workforce.

For disability due to non-occupational causes, individuals are entitled to disability insurance if they are disabled, under 60 years of age, and have contributed to the social security for at least 150 weeks within the last 6 years preceding the accident or illness. Benefits will be granted from the date of the cause that gave rise to the disability and must be reviewed at least every 3 years. The pension is in effect for as long as the cause of invalidity remains.

For disability due to occupational causes, the benefits are paid according to the type and degree of disability. These benefits are paid through employers' contributions.

The legal working age in Nicaragua is 14, with exceptions overseen by the General Labor Inspectorate. Persons 16 years of age and above have the legal capacity to enter into an employment contract. Minors between the ages of 14 and 16 can enter into employment contracts with the permission of their parents or legal representatives. Persons under 18 cannot be employed in hazardous jobs.

Employing young persons in jobs that harm their education, health, morals, and development is prohibited.

Young employees are entitled to the same rights as adult employees, such as equal salary remunerated in legal currency, safe and hygienic working conditions, participation in a union, and social security benefits. However, their working hours may not exceed 6 hours a day or 30 hours a week.