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NC: New changes to social security

January, 2019

Today´s resolution from the Directive Council of the Nicaraguan Social Security Institute (INSS, in Spanish) approved the following changes to the social security system:

  1. Increase to employer and worker´s contributions to the Integral Regime.
    • Contributions of employers with more than 50 employees, increase from 19% to 22.5%.
    • Contributions of employers with less than 50 employees, increase from 19% to 21.5%.
    • Employee contributions increase (under both scenarios) from 6.25% to 7%.
    • State contributions (under both scenarios) increases from 0.25% to 1.75%.
  2. Increase to employer and worker´s contributions to the Disability, Old Age, Death and Professional Risks Regime.
    • Contributions of employers with more than 50 employees, increase from 13% to 16.5%.
    • Contributions of the employer with less than 50 employees, increase from 13% to 15.5%.
    • Employee contributions increase (under both scenarios) from 4.25% to 5%.
  3. There are no limits to the maximum amount subject to affiliates' contributions.
  4. Increase to contributions to the Optional Integral Regime from 18.25% to 22.25%
  5. Increase to contributions to the Optional Disability, Old Age, Death and Professional Risks Regime from 10% to 14%
  6. Changes to calculations of pensions, increasing the number of weeks contributed to the social system from 250 to 375.
  7. Changes to the calculation of pensions, reducing amounts payable to retirees as well as reductions of pensions payable to disabled spouses, minor children and elderly dependents.
  8. Pension amounts will be reviewed on November 30th of each year. The maximum pension granted by INSS remains at US $ 1,500.00 dollars.

The above changes will apply to start February 1st, 2019.

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