Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Minimum Wage Fixing Convention, 1970 (No. 131) - Nicaragua (Ratification: 1976)

Articles 1 and 3 of the Convention. System of minimum wages and the workers’ basic needs. The Committee notes the adoption of Minimum Wage Act No. 625 of 31 May 2007 which repeals Minimum Wage Act No. 129 of 24 May 1991.

The new Minimum Wage Act provides that the minimum wage is fixed by reference to the value of a “basic family basket” (canasta básica), which is calculated and adjusted by the Ministry of Health, the Social Security Institute of Nicaragua (INSS) and the National Institute of Information and Development (INIDE). The Act also provides that in determining minimum wage rates every six months, the National Minimum Wage Commission takes into account the general wages level, the cost of living and its variations, social security benefits, the wage levels of other social groups and the highest wages paid by the State, as well as economic factors, such as productivity and the objective of achieving high employment levels.

The Committee notes that by Ministerial Agreement JCHG 04-08-12 of 31 August 2012, the minimum wage was raised in ten key economic sectors and currently ranges from 2,273 Nicaraguan cordobas (NIO) (approximately US$95) in agriculture to NIO5,161 (approximately US$216) per month in finance and the construction industry. The Government indicates that as of January 2012, minimum wage rates represented between 34 and 66 per cent of the value of the basic family basket which stood at NIO10,120 (approximately $424) a month.

The Committee trusts that the Government will pursue its efforts, in consultation with the social partners, to ensure that minimum wages maintain an acceptable purchasing power in relation to a basic basket of essential consumer goods, so as to provide a decent standard of living to low-paid workers.

Article 4. Consultation and participation of employers’ and workers’ organizations. In reply to the Committee’s previous comments, the Government indicates that, since 2007 the tripartite National Minimum Wage Commission operates according to the law and meets every six months to review and readjust minimum wage levels. It also indicates that the National Minimum Wage Commission includes in its composition one representative from each of the trade union confederations and one representative from each of the employers’ associations represented nationally. The Government further indicates that another consultative body, the Free Trade Zone Tripartite Labour Commission, has agreed on a 9 per cent minimum wage increase for 2012 and a 10 per cent increase for 2013. Finally, the Government refers to recent minimum wage adjustments through tripartite agreements in the construction sector and the coffee industry. Reaffirming the importance of engaging into genuine and effective consultations with the social partners at all the stages of the minimum wage fixing process, the Committee requests the Government to continue to provide information on the operation of the different tripartite consultative bodies involved in the regular review of minimum wage rates.