Nicaraguan trade unions welcome 5% pay increase for the public sector

NSCAG News | on: Thursday, 29 July 2021

Public sector workers will benefit from 5% salary increase

Public sector workers will benefit from 5% salary increase

On 1st August, salaries for Nicaraguan public sector workers will be increased by 5%. Announcing the increase, President Ortega said that this has been made possible by the good performance and reactivation of the country's economy which has been growing in strength and stability, this in spite of the pandemic, the attempted coup in 2018 and sanctions imposed by the United States. Nicaragua's investment in health centres and hospitals, roads, schools and productive activities have been recognised by multilateral financial institutions as contributing to the country's improved financial position.

The salary increase will directly benefit health workers and teachers who make up 70.26% of the fiscal payroll and has been awarded in recognition of the fact that these sectors provide "indispensable services, efficient services, responsible services to the Nicaraguan people". The increase will also benefit state and municipal workers.

Vice President Rosario indicated that "these increases are firstly in recognition of so many selfless servants, dedicated to serving our people and indirectly also the Nicaraguan people who receive these services and who we are sure feel happy that vital teachers, educators, doctors, nurses, assistants, staff in all the health centres, hospitals, mobile clinics, staff involved in all these health fairs, which are held week after week by the hundreds, almost a thousand of them everywhere; these workers receive a little more to improve their lives, because we all have the right to live well."

The salary increase comes on top of an increase to the minimum wage which was approved in February. In accordance with agreements reached by the National Minimum Wage Commission, minimum wages were increased by 3% annually starting on 1st March. The increase did not apply to free trade zone employees, whose salary was increased by 8.25% in January and the increase for workers from artisanal and tourism small enterprises was 1%. Apart from these workers, the three percent increase applied to all sectors of the national economy and will be effective up until the end of February 2022.

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