Nicaraguan free trade zone companies sign minimum wage agreement for the next 5 years
Businessmen, workers, and representatives of the Ministry of Labor (MITRAB, for its acronym in Spanish), reached in consensus the signing of a Tripartite Agreement, which guarantees that for the next five (5) years the people working in the companies of the free trade zone sector in Nicaragua will enjoy a percentage salary increase of 8% for the years 2023 and 2024, 7% in the year 2025 and finally 6.7% in the years 2026 and 2027.
Therefore, the amounts by which they would be increased and the new minimum wages in that sector will be as follows: in the year 2023, the increase will be C$600.00 córdobas for a minimum wage of C$8,098.00 córdobas, in the year 2024 of C$648. 00 córdobas for a minimum salary of C$8,746.00 córdobas, in the year 2025 of C$613.00 córdobas for a minimum salary of C$9,359.00 córdobas, in the year 2026 of C$627.00 for a minimum salary of C$9,986.00 and finally in the year 2027 of C$670.00 for a total of C$10,656.00 córdobas.
“This agreement is expected to benefit more than 142,000 workers, making it the only economic sector in the country that will be guaranteed an increase in its minimum wage for the next five years. We believe that this model agreement is healthy for the stability of the country because it generates a climate of trust in all areas,” said Alba Luz Torres, Minister of Labor.
The agreed increases would be effective as of January 1st of each respective year.
According to the records of the National Commission of Free Zones and the Central Bank of Nicaragua, as of July of this year, there are 187 companies operating under the free zone regime, which have generated USD 2.3 million in exports for the country this year.
Gerardo Escorcia
gerardo.escorcia@garciabodan.com
Associate
García & Bodán
Nicaragua