Domestic Help, Hiring Employees
Yes, you can hire a maid, cook, nanny, gardener or caretaker for a little over $100 a month depending on their hours and responsibilities. Finding reliable, qualified and trustworthy help is not easy. If it is known you are looking for domestic help, you can expect dozens of people to be at your door seeking employment. Our advice is to talk to other expats about their experiences or recommendations. It is often safer to hire a relative or close acquaintance of a known good worker. The family is very important here and an employee does want their family to find out they were fired for good cause.
When interviewing employees, ensure you are fluent in Spanish or have someone there that can translate for you. Most interviewees will state they have the skills you desire whether they do or not. With the high unemployment, they need the job and they are willing to learn what it takes. You will not hear a potential employee state they do not do windows. Find out where they live since you may have to pay their transportation. We know of employees taking positions an hour from where they live because they need the job. It is a good idea to hire someone from your neighborhood and again, because they will tend to do a better job because everyone will know of any problems.
Many times and often, the employee will become part of your family. We love our maid and her family but this has meant that we have had to pay for some of their expenses like when her mother becomes ill or her daughter needs school supplies. But for the amount we pay our maid, we don’t care and enjoy doing so. Buying a bicycle for our maid’s daughter then delivering it to her was a moment we will not easily forget since she would never have had a bike otherwise.
You will find books that state the rules of engagement with your domestic help such as do not have the domestic help eat with you or do not give them more than their pay. Rubbish! We are here to learn a new culture and live with the people. People we like will become part of our family. If they do not become a part of your family or at least a friend, you have not hired the right people. On the other hand, we have found that constant supervision and reminders of minimal requirements are necessary and must be enforced.
Having said all of that, the rights of all workers in Nicaragua are fiercely enforced by the government. Keep records of everything because it is difficult to fire even domestic help unless there are criminal circumstances such as theft which is difficult to prove. You can state the worker does not do their job but proof is needed. They have obligations but they also have rights that the government defends. To make sure of it, employees must sign a labor contract where the salary, schedule and obligations are stipulated clearly, trying to avoid misunderstandings. This contract may be used in legal litigations so it must be very specific.
If you buy a home here, ensure the employees are terminated. This ensures the employee receives their just amounts for seniority, vacation, etc. You can hire them back but then you are not liable for their previous due amounts which can accumulate. Nothing worse than losing an employee after six months then having to pay them for 12 months of back benefits.
The employees' obligations are to have, at least, an acceptable performance in the tasks they have been assigned. Moreover, they must respect their work establishment and managers, stick to a schedule, being on time, etc. If the worker plans to quit the job, he or she must tell the employer fifteen days before the last day of work to ensure there is plenty of time to find a replacement.
Some of the employees’ rights are to earn, at least, the minimum salary in their type of occupation and to have at least one day of the week free. That’s right, they work six days a week here. Moreover, employees must have fifteen days of vacation after six months of work, which is a month per year worked. It will depend on the employers’ choice to pay double for these vacations if the employee works during their holidays or let the worker vacation for fifteen days. Our maid always takes the money and works through the vacation. Part-time workers have the same rights as full-time workers. Workers receive 13 months of pay each year meaning in December they get two months pay. plus their vacation pay.
Companies are considered micro enterprises if the total number of workers do not surpass ten and if they use some machinery. However, if micro enterprises do not use machinery, there is a limit of twenty employees. The minimum pay keeps changing so you need to check on the current levels.
New rulings on maid rights have benefited this sector. First, employers must pay 100% of medical treatment derived from working accidents, if maids are not ascribed to INSS. Teenager maids must attend school and employers are responsible for ensuring this happens. When maids receive room and board as part of their compensation, the value of that can not exceed 50% of their salary. Employees can not work for more than 12 hours.
Every employee must be inscribed to INSS (Instituto Nicaragüense de Seguridad Social)—Nicaraguan Institute of Social Security within three days after the employee starts working. If not, there is a fine to the employer and part time workers must be included. There are various types of pensions and benefits.
In general the employer must pay 16% of the salary to INSS and the employee pays 2.5%. In our case, our maid works 3 hours per day, 6 days a week. Even though part-time, we must pay 16% of the ful-time minimum wage which right now is around 3,800 codobas. Crazy, but that is how it works. Even though the salaries are very low, remember that benefits are over 40%. This is because the employee gets one month a year for vacation, two months pay in December and many holidays. There is also separation pay of around one month per year up to the fifth year and a smaller amount after that. So, you might let go an employee and owe them 8 months pay.
Moreover, the national holidays must be taken into account. They legally are paid holidays. However, if the employee works during these days, they are paid double. Sometimes, the holiday falls on a Sunday; then the holiday is considered to be Monday and the employee receives a day off or double pay. The national holidays are January 1st-New Year, Holy Thursday, Holy Friday, July 19th- Revolution day, September 14th and 15th-San Jacinto Battle and Independence Day, December 8th-Immaculate Conception and December 25th-Christmas day. Moreover, there are local holidays that vary in each city of the country. Generally, they coincide with the Patronal feasts. In Granada's case, August 14th and 15th are holidays because the Hípica horse festival is actually a celebration of the local saint.
Normal jobs working days of 48 hours per week. Anything over that must be paid double as overtime and may not exceed nine hours per week. Work that begins before 6 AM or after 8 PM is also considered overtime.
A final note. We are guests in this country so I think we have an obligation to pay more than the minimum level of pay. On the other hand, we have found we are paying at least 40% more to our maid than her salary. This includes medicines, days off for whatever, school books, communion dresses, bicycles, school clothes, etc. And you know what, she is worth every penny!
Be very careful hiring any employees. We love the people here but the poverty and lack of jobs creates problems. The majority of home robberies and thefts are traced to employees that could not resist the temptation.
Nicaragua Labor Laws
For the rules on hiring workers, minimum salaries, etc.
Here is the website in Spanish:
http://www.mitrab.gob.ni/documentos
And the most common questions and answers in English:
http://www.leylaboral.com/nicaragua/summariesnicaragua.aspx
When interviewing employees, ensure you are fluent in Spanish or have someone there that can translate for you. Most interviewees will state they have the skills you desire whether they do or not. With the high unemployment, they need the job and they are willing to learn what it takes. You will not hear a potential employee state they do not do windows. Find out where they live since you may have to pay their transportation. We know of employees taking positions an hour from where they live because they need the job. It is a good idea to hire someone from your neighborhood and again, because they will tend to do a better job because everyone will know of any problems.
Many times and often, the employee will become part of your family. We love our maid and her family but this has meant that we have had to pay for some of their expenses like when her mother becomes ill or her daughter needs school supplies. But for the amount we pay our maid, we don’t care and enjoy doing so. Buying a bicycle for our maid’s daughter then delivering it to her was a moment we will not easily forget since she would never have had a bike otherwise.
You will find books that state the rules of engagement with your domestic help such as do not have the domestic help eat with you or do not give them more than their pay. Rubbish! We are here to learn a new culture and live with the people. People we like will become part of our family. If they do not become a part of your family or at least a friend, you have not hired the right people. On the other hand, we have found that constant supervision and reminders of minimal requirements are necessary and must be enforced.
Having said all of that, the rights of all workers in Nicaragua are fiercely enforced by the government. Keep records of everything because it is difficult to fire even domestic help unless there are criminal circumstances such as theft which is difficult to prove. You can state the worker does not do their job but proof is needed. They have obligations but they also have rights that the government defends. To make sure of it, employees must sign a labor contract where the salary, schedule and obligations are stipulated clearly, trying to avoid misunderstandings. This contract may be used in legal litigations so it must be very specific.
If you buy a home here, ensure the employees are terminated. This ensures the employee receives their just amounts for seniority, vacation, etc. You can hire them back but then you are not liable for their previous due amounts which can accumulate. Nothing worse than losing an employee after six months then having to pay them for 12 months of back benefits.
The employees' obligations are to have, at least, an acceptable performance in the tasks they have been assigned. Moreover, they must respect their work establishment and managers, stick to a schedule, being on time, etc. If the worker plans to quit the job, he or she must tell the employer fifteen days before the last day of work to ensure there is plenty of time to find a replacement.
Some of the employees’ rights are to earn, at least, the minimum salary in their type of occupation and to have at least one day of the week free. That’s right, they work six days a week here. Moreover, employees must have fifteen days of vacation after six months of work, which is a month per year worked. It will depend on the employers’ choice to pay double for these vacations if the employee works during their holidays or let the worker vacation for fifteen days. Our maid always takes the money and works through the vacation. Part-time workers have the same rights as full-time workers. Workers receive 13 months of pay each year meaning in December they get two months pay. plus their vacation pay.
Companies are considered micro enterprises if the total number of workers do not surpass ten and if they use some machinery. However, if micro enterprises do not use machinery, there is a limit of twenty employees. The minimum pay keeps changing so you need to check on the current levels.
New rulings on maid rights have benefited this sector. First, employers must pay 100% of medical treatment derived from working accidents, if maids are not ascribed to INSS. Teenager maids must attend school and employers are responsible for ensuring this happens. When maids receive room and board as part of their compensation, the value of that can not exceed 50% of their salary. Employees can not work for more than 12 hours.
Every employee must be inscribed to INSS (Instituto Nicaragüense de Seguridad Social)—Nicaraguan Institute of Social Security within three days after the employee starts working. If not, there is a fine to the employer and part time workers must be included. There are various types of pensions and benefits.
In general the employer must pay 16% of the salary to INSS and the employee pays 2.5%. In our case, our maid works 3 hours per day, 6 days a week. Even though part-time, we must pay 16% of the ful-time minimum wage which right now is around 3,800 codobas. Crazy, but that is how it works. Even though the salaries are very low, remember that benefits are over 40%. This is because the employee gets one month a year for vacation, two months pay in December and many holidays. There is also separation pay of around one month per year up to the fifth year and a smaller amount after that. So, you might let go an employee and owe them 8 months pay.
Moreover, the national holidays must be taken into account. They legally are paid holidays. However, if the employee works during these days, they are paid double. Sometimes, the holiday falls on a Sunday; then the holiday is considered to be Monday and the employee receives a day off or double pay. The national holidays are January 1st-New Year, Holy Thursday, Holy Friday, July 19th- Revolution day, September 14th and 15th-San Jacinto Battle and Independence Day, December 8th-Immaculate Conception and December 25th-Christmas day. Moreover, there are local holidays that vary in each city of the country. Generally, they coincide with the Patronal feasts. In Granada's case, August 14th and 15th are holidays because the Hípica horse festival is actually a celebration of the local saint.
Normal jobs working days of 48 hours per week. Anything over that must be paid double as overtime and may not exceed nine hours per week. Work that begins before 6 AM or after 8 PM is also considered overtime.
A final note. We are guests in this country so I think we have an obligation to pay more than the minimum level of pay. On the other hand, we have found we are paying at least 40% more to our maid than her salary. This includes medicines, days off for whatever, school books, communion dresses, bicycles, school clothes, etc. And you know what, she is worth every penny!
Be very careful hiring any employees. We love the people here but the poverty and lack of jobs creates problems. The majority of home robberies and thefts are traced to employees that could not resist the temptation.
Nicaragua Labor Laws
For the rules on hiring workers, minimum salaries, etc.
Here is the website in Spanish:
http://www.mitrab.gob.ni/documentos
And the most common questions and answers in English:
http://www.leylaboral.com/nicaragua/summariesnicaragua.aspx
Granada Time