By Mario Novoa and Edgard Torres February 12, 2020
On February 6, 2020, Nicaraguan Ministry of Labor issued the Ministerial Agreement number ALTB-01-02-2020, which establishes that as of March 1, 2020, a new adjustment of 2.63% will be applied to the minimum wage applicable in Nicaragua.
The National Minimum Wage Commission, formed by the Government of Nicaragua, the union sector, and the private-sector business agreed that said adjustment will apply to all workers in the public and private sector of Nicaragua, establishing that in cases where the salary needs to be stipulated based on production or performance standards, the units of measures must be maintained without any alteration, but must be revalued as a result of readjustment.
Furthermore, through this agreement, the wage adjustment of 8.25% for the Free Zone industries was ratified, which was approved as of January 1, 2020, therefore, the 2.63% adjustment does not apply to this sector.