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Nicaragua - Minimum Wages - 2011


LAST UPDATE

7 December 2011

SOURCES


Name of Act

Ministerial Agreement JCHG-06-08-11 on Minimum Wages approved by the National Commisssion on Minimum Wages, (Acuerdo Ministerial sobre la aplicación de los Salários Minimos aprobados por la Comision Nacional de Salario Minimo) of 6 August 2011.

Name of Act

Act No. 185 promulgating the Labour Code, (La Gaceta No. 205, 30 October 1996, pp. 6109-6155) of 30 October 1996 as amended up to Act n° 671 of 31 October 2008.
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Name of Act

Law n° 625 on Minimum Wage, (Ley núm. 625 de salario mínimo: La Gaceta, N° 120, págs 3815-3817), of 15 June 2007

Name of Act

General Law on Labour Inspection, Law No.664 of 26 June 2008 (Ley General de Inspección del Trabajo aprobada el 26 de junio de 2008).

Name of Act

Ministerial Agreement JCHG-005-04-2011 on new wages in the construction sector, (Acuerdo Ministerial sobre los nuevos salarios en el sector de la construcción) of 30 April 2011.

Name of Act

Law No.763 on the rights for disabled persons (Ley No.763 sobre los derechos de las personas con discapacidad) of 28 July 2011

LEGAL DEFINITIONS


Employee/worker

"Employee" shall mean any person who written or orally, individually or collectively, expressly or implied, temporarily or permanently is in a labour relation, towards another person called employer, by which services are rendered, or material or intellectual work is performed under the employer’s direct or indirect supervision and subordination, in exchange of remuneration.
Labour Code Art.6

Employer

"Employer" shall mean any individual or legal person who hires the rendering of services or the performing of a work in exchange for remuneration.
Labour Code Art.8

Wage

"Wage" shall mean the remuneration which the employer shall pay to the employee by virtue of the employment contract or labour relation.
Labour Code Art.81

Minimum wage

"Minimum wage" shall mean the minimum remuneration that every worker is entitled for the services rendered in an ordinary working day, capable to ensure the satisfaction of the basic and vital needs of a head family in the material, moral cultural order and accordance with the cost of living in the different regions of the country.
Labour Code Art.85
Law n° 625 on Minimum Wage Art.2

MINIMUM WAGE FIXING


Procedure


Minimum wages set directly by tripartite negotiations

The National Minimum Wage Commission composed of a number of experts from different institutions (Ministry of Labour, Ministry of Industry and Commerce, Ministry of Finance, the Nicaraguan Central Bank), a representation of each of the main national trade unions, and a representation of each of the employers chambers with national representation, are in charge of adjusting periodically the minimum wage rates by sector.
Once this resolution is issued it will have legal force, from the signature of one representative of the national trade unions in the name of the workers, one representative of the employers and the Ministry of Labour.
Law n° 625 on Minimum Wage Art.7,8

Minimum wage set through decentralized collective bargaining

Wage rates set by collective agreement can not be lower than the relevant minimum wage rates set by the National Minimum Wage Commission.
Labour Code Art.82, 235
Law n° 625 on Minimum Wage Art.6

Criteria


Needs of workers and their families

Yes. A representative food basket with 53 different basic products that fulfil the basic needs of average workers and their families shall be taken into account when fixing minimum wage rates.
Law n° 625 on Minimum Wage Art.8(a)
Labour Code Art.85

Cost of living

Yes. The minimum wage shall ensure the satisfaction of the basic and vital needs of the worker and his family in the material, moral and cultural order in accordance with the cost of living in the different regions of the country.
Law n° 625 on Minimum Wage Art.2

Level of wages and incomes in the country

Yes. In order to fix the minimum wage it shall be taken into account among others factors, the general level of wages in the country.
Law n° 625 on Minimum Wage Art.8(a)

Social security benefits

Yes. In order to fix the minimum wage it shall be taken into account among others, the social security benefits.
Law n° 625 on Minimum Wage Art.2, art.8(a)

Economic development

Yes. In order to fix the minimum wage it shall be taken into account among other factors, the economic development.
Law n° 625 on Minimum Wage Art.8(a)

Productivity

Yes. In order to fix the minimum wage it shall be taken into account, among others factors, the productivity of the country.
Law n° 625 on Minimum Wage Art.8(a)

Inflation rate

Yes. In order to adjust the minimum wage rate it shall be taken into account, among others factors, the inflation rate officially provided each semester by Nicaraguan Central Bank.
Law n° 625 on Minimum Wage Art.8(e)

Coverage


Scope

All workers (in the public and private sector) are entitled to enjoy a minimum wage rate, varying according to the different sectors; agricultural sector, fishing, mining, manufacturing, turistic sector, construction, among others.
Ministerial Agreement on Minimum Wages (2011) Art.1
Labour Code Art.2, art.85

Excluded categories

No exclusions as for the application of the minimum wage.
Labour Code Art.85

Specific minimum wage rates


» Specific minimum wage by occupation

No

» Specific minimum wage by sector

Yes - The following are the different sectors established: agriculture sector; fishing sector; mining sector; manufacturing industry sector; industries subject to special tax regime sector; electricity, gas and water sector; construction industry sector; commerce, restaurants and hotel industry sector; transport, warehousing and communication sector; financial institutions and insurance sector; community, social and personal services sector; central and local government sector.
Ministerial Agreement on Minimum Wages (2011) Art.1

» Specific minimum wage by region

No

» Minimum wage levels for specific categories of workers


» Domestic Workers

Domestic workers are not excluded from the application of the minimum wage legislation and they enjoy same labour rights as other workers.
However, it is unclear as whether the allowances in-kind (accomodation and food) may imply a reduction of the payments in cash under the rate of the minimum wage.
Labour Code Art.146

» Youth

Young workers are entitled to enjoy the same level of remuneration as other workers for equivalent work. Therefore, young workers shall enjoy the minimum wage.
Labour Code Art.134(b)

» Disabled

Disabled workers are entitled to work in equal conditions to other workers and to enjoy the same labour rights. Therefore disabled workers shall be entitled to enjoy at least the minimum wage.
Law No.763 on the rights for disabled persons Art.34,36

» Other categories

Prison workers: minimum wages for prison workers cannot be lower than the minimum wage applicable to a regular worker performing the kind of work a prison worker performs.
Labour Code Art.195

Level


Minimum wage level(s) in national currency

Manufacturing Sector: C$2,746.96 cordobas per month, C$91.56 cordobas per day, and C$11.44 cordobas per hour.
Ministerial Agreement on Minimum Wages (2011) Art.1

Last minimum wage update

16 August 2011
Ministerial Agreement on Minimum Wages (2011) Art.7

In-kind allowances

Wages shall be paid in legal tender and the compensation with goods or other means of payment are not permitted. However in some cases, such as for domestic workers or agricultural workers, in kind-allowances may be accepted as a part of the remuneration.
Labour Code Art.86, 146

Rate of payment


» Hourly

Yes- minimum wage legislation provides an hourly rate for all sectors.
Ministerial Agreement on Minimum Wages (2011) Art.1

» Daily

Yes- minimum wage legislation provides a daily rate for all sectors.
Ministerial Agreement on Minimum Wages (2011) Art.1

» Monthly

Yes- minimum wage legislation provides a monthly rate for all sectors.
Ministerial Agreement on Minimum Wages (2011) Art.1

» Other

Minimum wage may be fixed per time unit or per piece-rate, and may be calculated per hour, per day, per week, per each 14 days, per fortnight or per month.
Law n° 625 on Minimum Wage Art.4

Scheduled frequency of adjustment

Minimum wage rates shall be adjusted every 6 months according to the particularities of each economic sector. This fixation shall be made per time unit or per piece-rate, and may be calculated per hour, per day, per week, per each 14 days, per fortnight or per month.
Law n° 625 on Minimum Wage Art.4

Enforcement mechanisms


Labour inspection

Authorized labour inspectors shall carry out inspections in order to ensure compliance with labour legislation.
Law No.664 on Labour Inspection Art.21,27

Fines in national currency for non-respect of legislation

The General Direction of the Labour Inspection may impose fines depending on the seriousness of the offence committed by the employer or his representative and shall run in between 5 to 20 times the minimum wage rate for the most slight offences and to 40 to 80 times the minimum wage rate for the most serious offences.
Law No.664 on Labour Inspection Art.57

Results generated on: 28th July 2014 at 10:16:00.
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