The Nicaraguan Social Security Institute has instituted a 10% increase on the maximum wage threshold for the contributions to the social security. The provision was adopted in Resolution No. RI-112-2018, which entered into force on January 1, 2019. The new threshold subject to contribution is C$ 96,841.56 Nicaraguan cordobas.

Pursuant to this provision, employers contributions must be paid on the basis of this new threshold, as applicable. Employers must withhold the corresponding percentage from the salaries of employees who earn an income lesser than, equal to or greater than this new amount.

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