BDS Publications

#Nicaragua 🇳🇮 #BDS_Informs: Key Considerations for the May 1st National Holiday

Written by BDS Asesores | May 8, 2026 3:00:00 AM

International Workers’ Day is a date of great historical significance for the labor movement and the advancement of workers’ rights.

Through an official communication issued by the Ministry of Labor, Friday, May 1, 2026 was declared a paid mandatory national holiday for all employees nationwide, in accordance with Article 66 of the Labor Code.

Key labor considerations include:

  1. Overtime work in Nicaragua is voluntary; therefore it requires a mutual agreement or a special contract between the parties, in accordance with Article 57 of the Labor Code.
  2. If work is performed during the national holiday, any hours worked must be compensated at overtime rates in line with applicable labor legislation.
  3. In accordance with Article 69 of the Labor Code, the mandatory rest period does not apply to essential services activities that cannot be interrupted due to their nature or the needs they serve, particularly when such interruption may affect the country’s economic, social, or security activities.
  4. Private sector employees must resume their regular duties on the next business day, unless an internal provision or special agreement states otherwise.
  5. Employers are advised to plan essential shifts in advance, document agreements with employees required to work during the holiday, and ensure the correct payment of any time worked.

To review the official communication, please click here.

Please contact us if you have any questions regarding this or other labor-related matters.