Nicaragua: Minimum Wage Adjustment Every Three Years

The proposal by the business sector, which includes negotiating and approving wage agreements every three years, aims to stimulate investment and create more stability.

Thursday, August 22, 2013

The initiative would be presented to the Government and the trade unions by the Superior Council of Private Enterprise (Cosep). According to the president of Cosep, José Adán Aguerri, "in light of the slow growth of the world economy and the fall in international prices of commodities such as coffee, gold and sugar, minimum wage agreements shoudl be set for a period of three years in order to make the country more productive and competitive," noted an article in Elnuevodiario.com.ni.

According to Aguerri, a change in the system of reviewing private sector wages would help to stimulate investment and employment promotion.

"As we at Cosep have been pointing out this negotiation scheme, where the only criteria used are the total sum of economic growth and the inflation rate, is not sustainable (...) because it is not tied to market variables and it is causing a reduction of formality and distortions in the pay scales," he said.



More on this topic

Nicaragua: Changes to Calculation of Minimum Wage

March 2015

The private sector has rejected the methodology used by the government to establish the increase for this year and presented a proposal to make adjustments in the future.

From a statement issued by the Superior Council of Private Enterprise (COSEP):

The Superior Council of Private Enterprise (COSEP) in light of the unsuccessful negotiations in the National Minimum Wage Commission to reach a tripartite agreement and the political decision of the government through the Ministry of Labour (MITRAB), to approve the minimum wage unilaterally, which is in effect for all economic sectors of the country from March 1 this year, wishes to express the union position on this.

Nicaragua: Businessmen Question Minimum Wage

March 2014

The Superior Council of Private Enterprise does not agree with the 10% wage increase being applied retroactively from March 1.

The minimum wage announced by the Government establishes, in addition to an average 10% increase, its retroactive application. If the retroactivity is maintained, the Superior Council of Private Enterprise (Cosep) will file an appeal.

Basic salary in Nicaragua goes up by 12.5%

March 2012

Business owners, unions and the government reached an agreement to increase the basic salary of urban workers in most sectors by 12.5% and by 13% for farm workers.

Though he had previously announced the business association he represents would not participate in a meeting scheduled for today, Jose Adan Aguerri, president of the Higher Council of Private Enteprise (COSEP in Spanish), came back to the negotiating table in the last moment, what allowed all parts to make a deal.

Minimum Wage in Nicaragua to be Ratified

August 2011

Representatives of private enterprise, government and workers will meet at the National Minimum Wage Commission, scheduled for this week, to ratify a 6% increase starting from 16 August.

The agreement signed last February established a minimum wage increase of 13% to be applied in two stages, on Feb. 16 and on Aug. 16.

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