Workmen's Compensation (Accidents) Convention, 1925 (No. 17) - Nicaragua (Ratification: 1934)

Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

In order to provide an overview of matters relating to the application of the ratified Conventions on social security, the Committee considers it appropriate to examine the application of Conventions Nos 12, 17, 18, 19, 24 and 25 in a single comment.

Article 1 of Conventions Nos 12, 17, 18, 19, 24 and 25. In its previous comments, the Committee emphasized the need to extend the coverage of the social security system and requested the Government to provide information on the progress made in this regard. As the Government’s report does not contain specific information on this subject, the Committee notes the information contained in the Statistical Yearbook 2020, published in February 2021 by the Nicaraguan Social Security Institute (INSS), which shows that the numbers of persons registered with the social security system have fallen constantly since 2016, with a reduction of 27 per cent in the number of insured persons as a proportion of the economically active population and 35 per cent as a proportion of the population that is actually employed. The total number of insured persons fell from 914,196 in 2017 to 714,465 in 2020 (p. 328). The Committee also observes that the proportion of the population covered by sickness insurance has decreased, as has the number of newly insured persons, falling from 124,802 to 59,603 (p. 327). Moreover, according to the continuous household survey, published by the National Development Institute of Nicaragua in April 2021, the informal employment rate was around 45 per cent. The Committee also observes that, according to the ILO Social Protection Platform, in 2021, only 14.5 per cent of the population was effectively covered by at least one social protection benefit.

The Committee expresses concern at the above statistics, which point to a constant reduction in social insurance rates and in the number of persons protected, and an accelerating increase in the informal employment rate. In this regard, the Committee draws the Government’s attention to Article 1 of Conventions Nos 12, 17, 18, 19, 24 and 25, which guarantee the effective coverage and protection of workers and their families in the event of disease and accidents, whether occupational or of any other type. In light of the above, the Committee urges the Government to:

• -provide comprehensive statistical data on the current coverage of the social security system, disaggregated by branch in the various sectors of activity (industry, agriculture, informal economy, etc.) in relation to the total number of workers, in accordance with the questions contained in the report forms for the various Conventions concerned; and
• -indicate the priorities adopted for the progressive extension of the coverage of the social security system and the measures envisaged or adopted, including in export processing zones and the agricultural sector.

Conclusions and recommendations of the Standards Review Mechanism. The Committee recalls the recommendations of the Tripartite Working Group of the Standards Review Mechanism (SRM), on the basis of which the Governing Body decided that Member States for which Conventions Nos 17, 18, 24 and 25 are still in force should be encouraged to ratify the Employment Injury Benefits Convention, 1964 [Schedule I amended in 1980 (No. 121), and the Social Security (Minimum Standards) Convention, 1952 (No. 102). The Committee encourages the Government to give effect to the decision adopted by the Governing Body at its 328th Session (October-November 2016) and to consider the ratification of the most up-to-date social security instruments.

The Committee recalls that the Government may avail itself of ILO technical assistance in this respect.

[The Government is asked to reply in full to the present comments in 2025.]

Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

The Committee recalls that Nicaragua has ratified the Conventions relating to social security protection in the event of occupational accidents and illnesses (Conventions Nos 12, 17 and 18) and protection in the event of illness (Conventions Nos 24 and 25). In view of the fact that, according to the information contained in the Government’s reports, the problems raised by the application of these Conventions are essentially of the same kind, the Committee has seen fit to formulate a general comment concerning all the social security Conventions ratified by Nicaragua. The Committee has also used the information sent by the Government in its report supplied under article 19 of the ILO Constitution in the preparation of the General Survey on social security instruments, and also the information sent by the Confederation of Trade Union Unity (CUS) concerning Conventions Nos 17, 18 and 24. In its previous comments concerning all the abovementioned Conventions, the Committee emphasized the need to extend the coverage provided by the social security system, the total number of persons affiliated to which represented some 18 per cent of the population in 2008. With this in mind, the Government indicates in its reports a progressive extension of the coverage provided by the social security system launched in 2007, which forms part of five strategic components of social security policy including, inter alia, stabilization of administrative costs, strengthening of controls connected with the effective collection of contributions, performance of actuarial studies in relation to decision-making and stimulating investment. As a result of these measures, coverage provided by the system increased by 27 per cent between 2007 and 2011.

As regards protection against occupational risks, the statistics provided by the Government in its report on Convention No. 17 show that, between 2007 and 2011, the number of protected employees and apprentices increased by 24.5 per cent and that 98.4 per cent of workers registered with the Nicaraguan Social Security Institute (INSS) are currently covered against occupational risks. In its reports on Convention No. 12, the Government mentions the conclusion of numerous agreements aiming to extend to the agricultural sector – especially agricultural, fish-farming or stock breeding cooperatives – the protection provided by the system against invalidity, old age, death and occupational risks. These agreements aimed to extend to the whole territory the coverage provided by the social security system, by reducing to ten and then to five the minimum number of employees in enterprises for the purpose of affiliation to the system (Agreement Nos 8 and 9) or by extending social insurance to the agricultural sector (Agreement No. 10). These measures resulted in a 122 per cent increase in the number of agricultural workers protected against occupational risks between 2006 and 2011. Nevertheless, according to the CUS, certain categories of workers, in respect of which Article 2 of Convention No. 17 authorizes States to make exceptions that they deem necessary (casual workers, home workers, non-manual workers whose earnings exceed a certain limit, members of the employer’s family), are rarely affiliated to the scheme providing protection against occupational accidents. Moreover, it happens that workers affected by occupational diseases do not receive the compensation to which they should be entitled. The Committee requests the Government to identify the categories of workers the coverage of whom by the system poses difficulties, and also the measures taken to resolve them.

As regards sickness insurance coverage, the Government indicates in its report on Convention No. 24 that the INSS has held information days intended for employers and workers concerning the issue of the extension of sickness insurance to all persons covered by the Convention. It also indicates in its report on Convention No. 25 that 56.8 per cent of the 51,451 agricultural workers have sickness and maternity coverage. An agreement was concluded with the Directorate of Cooperation for the Export Processing Zones with a view to promoting affiliation to the social security system for new enterprises. Efforts were made to ensure better coordination between central government and its autonomous entities and thereby achieve a better exchange of information enabling the creation of a register of newly established employers. The CUS points out that there are still many cases in which enterprises do not in practice respect the obligation to affiliate their employees to the social security system. In order to redress this situation, a plan of action was adopted for 2011, one of the objectives of which is to increase the number of inspections undertaken by the labour inspectorate in order to promote fulfilment by employers of their social security obligations, the Penal Code now explicitly penalizing offences in this area. The Committee requests the Government to provide information on the results of the plan of action and also on progress made with a view to extending coverage of the system to the export processing zones.

The Committee notes that the objective of extending the coverage provided by the social security scheme is also reflected in the inclusion of this priority under the Decent Work Country Programme (DWCP) for 2008–11. According to the DWCP, only about 26 per cent of the economically active population are covered by the INSS, especially because of the size of the informal sector, the fact that protection focuses on workers in the formal sector and the impossibility for the INSS to provide assistance to those in greatest need in the informal sector. In order to rectify this situation, the DWCP provides for the drawing up of actuarial studies and also of long-term reforms sustained on a tripartite basis and aimed at extending the coverage provided by the social security system while observing the principles of solidarity, equity and universality. The Committee notes that the information supplied by the Government shows a positive dynamic in social security necessary for achieving the level of coverage required by Convention No. 12 (Article 1), Convention No. 17 (Article 2), Convention No. 18 (Article 1), Conventions Nos 24 and 25 (Article 2). Furthermore, the Committee notes that the information, especially statistics, at its disposal show that the Government has a system for evaluating progress made on the basis of detailed data. The Committee requests the Government to supply comprehensive statistics in its next report on the current coverage provided by the system by branch in the various sectors of activity (industry, agriculture, informal economy, etc.) in relation to the total number of workers, in accordance with the questions contained in the report forms for the various Conventions concerned. The Government is also requested to send the results of the actuarial studies provided for by the DWCP, indicating the priorities adopted for the progressive extension of the coverage provided by the social security system and also any actions to this end already undertaken in the context of the DWCP. The Committee notes that, according to the information supplied by the CUS, the Ministry of Labour (MITRAB) does not adequately enforce the national legislation in practice and offending enterprises are not systematically prosecuted or the resulting penalties imposed, especially where they fail to register their employees in the social security system. According to the Committee, this is especially damaging to the sustainable management of social security institutions as the latter are required by national regulations to grant the corresponding benefits despite the non-payment of social contributions by the employers (section 109 of the General Regulations relating to the Social Security Act, read in conjunction with Decree No. 975 of 1 March 1982). In view of the above, the Committee considers it useful to intensify the dialogue with the Government and the social partners in order to enable them to fully exploit the potential of international social security standards as an instrument of social development. These standards provide that States must assume the general responsibility of ensuring the sound management of social security institutions and services with the involvement of representatives of the persons protected.

The Committee encourages the Government to fully involve the social partners in the management of social security institutions (as required, in particular, by Article 6 of Conventions Nos 24 and 25) in order to ensure transparent and durable management and hence extended coverage.

The Committee observes that its comments should be able to help countries in the formulation of an exhaustive national strategy for the development of social security. Nicaragua has already established a national policy whose main priorities coincide with the objectives established in the General Survey, aiming in particular at the extension of coverage, the quest for good governance, the collection of contributions, effective inspection and durable planning, by conducting actuarial studies. The Committee observes that the policy implemented by the Government might benefit from the addition of measures ensuring closer coordination of social security with employment policy, especially with a view to extending coverage to the informal sector, and refers the Government to the relevant developments in this area in the General Survey (paragraphs 496–534).

Finally, the Committee considers that the Government’s efforts would be better targeted if its adopted priorities included the objective for the country to match the minimum social security standards established by the up-to-date Conventions in this area and which, to date, have not been ratified by Nicaragua. It recalls that the Government, in its report under article 19 on social security instruments, provided detailed information in the form of a comparative analysis of national law and the Social Security (Minimum Standards) Convention, 1952 (No. 102). The analysis concluded that Nicaragua is in a position to ratify this Convention and to accept Parts III (Sickness benefit), V (Old-age benefit), VI (Employment injury benefit), VIII (Maternity benefit), IX (Invalidity benefit) and X (Survivors’ benefit), with the proviso of having recourse to the possibility allowed by Article 3 of Convention No. 102 to limit, for an initial period, the personal scope of application of the Convention to enterprises that employ more than 20 workers. The Committee considers that the ratification of Convention No. 102 represents a key element for guiding the process of reform by establishing minimum criteria to be achieved on the basis of international standards. The International Labour Conference, at its 100th Session, recalled that Convention No. 102 still serves as a point of reference for the progressive establishment of comprehensive social security coverage and that increasing the number of ratifications remains a key priority. The Committee therefore encourages the Government to pursue the objective of ratification of Convention No. 102 and to consider the possibility of including the ratification of this Convention among the objectives of the next DWCP, which would enable it to mobilize any technical assistance from the Office which it might need. The Committee also hopes that the programme which will cover the next period will maintain and develop the objectives pursued so far, and in so doing will take the present comments into consideration. The Committee requests the Office to ensure the dissemination, through all of its bodies, including regional ones, of the present observation to the various interested parties and to provide them with any technical support needed for this purpose.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

In its previous comments, the Committee drew the Government’s attention to the need to take steps to reverse the decline in the number of people in the economically active population who are insured under the social security scheme, against occupational risks in particular, and to provide information on the measures taken to this end.

In its last report, the Government mentions a significant increase in the number of workers covered by the Nicaraguan Social Security Institute (INSS) against occupational risks: from 266,124 in 1998, the number rose to 393,559 in 2005, which represents a 48 per cent increase. With regard to the percentage of the economically active population that is insured, the proportion was 18 per cent in 2005, up from 16 per cent in 1998. The Government’s report also sets out the measures that enabled it to achieve this result, such as information campaigns, reinforcement of supervision of the application of the legislation as an incentive to employers to affiliate their workers to social security, and implementation of a programme to affiliate domestic personnel to social security. The Government also states that the purpose of the social security model introduced in 1994 by the INSS was to renew the social welfare system, particularly in the area of health services, by separating the administrative and financial functions from the service provision functions. Furthermore, the INSS has entered into contracts with medical welfare companies (EMPs) and occupational risk health units (USRPs) which, according to the Government, have made a major effort to improve their quality indicators despite a lack of staff qualified in health and safety and occupational medicine, which in many cases is an obstacle to effective prevention and accurate diagnosis of occupational diseases. Lastly, the Government indicates in its report that there is a national programme for the prevention of occupational risks which focuses on the sectors where 75 per cent of reported occupational accidents occur nationwide, which has enabled the rate of industrial accidents to be kept under control, and that the target for the next three years is to maintain the rate at 4.5 accidents per 100 workers and at the same time to extend this programme to cover sectors totalling 85 per cent of industrial accidents.

The Committee notes this information with interest and requests the Government to continue to provide information on the effects of the measures taken gradually to extend the protection provided by the INSS, particularly in respect of occupational risks, to all workers covered by the Convention. It would also be grateful if, with its next report, the Government would send statistical data of the number of wage earners and apprentices protected against occupational risks in relation to the total number of workers employed in enterprises, undertakings and establishments, whether public or private.

The Committee would also be grateful if, in its next report, the Government would specify how effect is given to Article 11 of the Convention with regard to workers who are not yet covered by social security in the event of industrial accident. It reminds the Government that, under this provision, national laws or regulations must ensure the payment of compensation to injured workers or their dependants in the event of insolvency of the employer or insurer so that they are, at all events, paid the compensation due to them.

Direct Request (CEACR) - adopted 1999, published 88th ILC session (2000)

With reference to the Committee's comments with regard to extension of social security system cover, the Government indicates in its report communicated in 1998 that the Nicaraguan Institute of Social Security (INSS) has established a new social welfare system covering occupational risks in particular, and adopted a number of measures designed to increase and improve medical and monetary benefits payable in the event of occupational injury. The Government also states that the action designed to increase the number of people protected in agriculture, described in the report on the application of Convention No. 12, are valid for the occupational risks system. This action has allowed an increase in the number of people insured against occupational risks (197,095 insured in 1993 as against 216, 293 in 1997) which, even so, in 1997 represented only 15 per cent of the economically active population as against 22.5 per cent in 1990. In the near future, the INSS will establish a plan to inspect enterprises and to publicize widely the programmes and benefits of the occupational risks system in order to encourage enterprises to affiliate workers to said system.

The Committee notes this information. While appreciating the action undertaken by the INSS to increase the number of people covered by the social security system, particularly in the occupational risks branch, the Committee notes that the falling trend in the number of people protected as a proportion of the active population has not been reversed. The Committee therefore wishes the Government to continue to communicate information on the measures taken to extend the protection afforded by the INSS, particularly in the occupational risks branch, to all workers falling within the scope of the Convention and to supply statistics on the number of wage earners and apprentices protected against this risk in comparison with the total number of workers engaged in these public or private enterprises, businesses or establishments.

The Committee also requests the Government to send it information on the new social welfare model established in 1994 by the INSS, specifically for the occupational risks branch, as well as any relevant legislation.

Direct Request (CEACR) - adopted 1997, published 86th ILC session (1998)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

With reference to its previous comments, the Committee took note of the Quarterly Statistical Report of the Nicaraguan Institute of Social Security and Welfare (INSSBI) for the second quarter of 1993, supplied by the Government with its report. It notes in particular, from the statistical data contained in this report as compared to the same data for 1990, that the number of contributors, as well as the total number of persons covered by the social security system, has diminished substantially, showing a clear downward trend. The Committee recalls that this tendency was already noted in the Yearbook of Statistics of 1990 (page 35), published by the INSSBI, according to which the system of social security covered at the time only 22.5 per cent of the active population of the country. In this situation the Committee asks the Government to indicate any measures taken or under consideration to reverse this reduction in social security coverage and to extend progressively the protection provided by the social security system, and in particular by the employment injury branch, with a view to covering all workers employed in the undertakings falling within the scope of the Convention. In this respect the Committee once again requests the Government to indicate the number of employees and apprentices protected by the social security system as compared to the total number of workers employed, in particular in industrial and commercial undertakings.

Direct Request (CEACR) - adopted 1995, published 82nd ILC session (1995)

With reference to its previous comments, the Committee took note of the Quarterly Statistical Report of the Nicaraguan Institute of Social Security and Welfare (INSSBI) for the second quarter of 1993, supplied by the Government with its report. It notes in particular, from the statistical data contained in this report as compared to the same data for 1990, that the number of contributors, as well as the total number of persons covered by the social security system, has diminished substantially, showing a clear downward trend. The Committee recalls that this tendency was already noted in the Yearbook of Statistics of 1990 (page 35), published by the INSSBI, according to which the system of social security covered at the time only 22.5 per cent of the active population of the country. In this situation the Committee asks the Government to indicate any measures taken or under consideration to reverse this reduction in social security coverage and to extend progressively the protection provided by the social security system, and in particular by the employment injury branch, with a view to covering all workers employed in the undertakings falling within the scope of the Convention. In this respect the Committee once again requests the Government to indicate the number of employees and apprentices protected by the social security system as compared to the total number of workers employed, in particular in industrial and commercial undertakings.

[The Government is asked to report in detail in 1997.]

Direct Request (CEACR) - adopted 1992, published 79th ILC session (1992)

Further to its previous comments, the Committee took note of statistical information supplied by the Government in its reports received in June 1990 and March 1991. It also examined the Yearbook of Statistics of 1990 published by the Nicaraguan Institute of Social Security and Welfare (INSSBI).

According to this Yearbook (p. 35), the system of social security covers at present only 22.5 per cent of the active population with a downward tendency due to the deterioration of the country's economic situation. As to the geographic coverage, 64 per cent of contributants are concentrated in the department of Managua.

In this situation the Committee asks the Government to continue to supply information on any measures taken to extend progressively the protection provided by the social security system and in particular by the employment injury benefit branch, with a view to covering all workers employed in the undertakings falling within the scope of application of the Convention. Please indicate also the number of workmen, employees and apprentices protected by the social security system as compared to the total number of workers employed, especially in the sectors of industry and commerce.

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matter raised in its previous direct request, which read as follows:

In relation to its observation concerning the coming into force of the Basic Social Security Act (Decree No. 627 of 1981) and of the General Regulations of the Basic Social Security Act (Decree No. 628 of 1981), the Committee notes with interest the Government's statement to the effect that social security benefits have now been extended to the whole of the national territory.

The Committee would be grateful if the Government would supply, with its next report, the information concerning the practical application of this Convention, called for in point V of the report form adopted by the Governing Body.