Nicaragua settlement: C$25,000 / 3.5 years → C$104,166.67
At C$25,000, 3 years and 6 months, and seniority at 100%, the exit totals C$104,166.67. Resignation or justified dismissal can lower the indemnity percentage.
With a salary of C$ 25,000, 3 years and 6 months of seniority, 10 pending vacation days, and 6 months of thirteenth month:
- Seniority severance: C$ 83,333.33 (3.33 months of salary)
- Pending vacation: C$ 8,333.33
- Proportional thirteenth month: C$ 12,500
- Estimated total settlement: C$ 104,166.67
Seniority severance equals one month per year in the first 3 years, then grows more slowly (20 days per additional year).
Formula
Severance = monthly salary × seniority months × applicable %
Seniority months: 1 per year up to 3 years; then 1 month + 20 days per additional year (5-month cap) Vacation = (salary ÷ 30) × pending days Thirteenth month = salary × (period months ÷ 12)
The calculator's seniority scale is an educational reference of the general rule: one month of salary per year in the first 3 years, then 20 days per additional year up to a 5-month cap. The severance percentage is editable to compare scenarios (100%, partial, or 0%).
Step-by-step example (default values)
- Seniority = 3 years 6 months → severance months ≈ 3.33
- Severance = 25,000 × 3.33 × 100% = C$ 83,333.33
- Daily salary = 25,000 ÷ 30 = C$ 833.33; vacation = 833.33 × 10 = C$ 8,333.33
- Thirteenth month = 25,000 × 6/12 = C$ 12,500
- Total = 83,333.33 + 8,333.33 + 12,500 = C$ 104,166.67
Scenario table (same engine logic)
| Seniority | Severance months | Severance | Vacation | 13th month | Total estimate |
|---|---|---|---|---|---|
| 2 years | 2.00 | C$ 50,000 | C$ 8,333.33 | C$ 12,500 | C$ 70,833.33 |
| 3y 6m | 3.33 | C$ 83,333.33 | C$ 8,333.33 | C$ 12,500 | C$ 104,166.67 |
| 5 years | 4.33 | C$ 108,333.33 | C$ 8,333.33 | C$ 12,500 | C$ 129,166.67 |
| 10 years | 5.00 | C$ 125,000 | C$ 8,333.33 | C$ 12,500 | C$ 145,833.33 |
Reading the result
Nicaraguan severance protects the early years with one month per year and then slows down (20 days per additional year, capped at 5 months), so seniority matters most at the start: going from 2 to 5 years raises severance from C$ 50,000 to C$ 108,333. Vacation and the proportional thirteenth month complete the settlement based on what is accrued at the exit date.
If the exit was a voluntary resignation without just cause, severance may not apply; that is why the editable percentage lets you compare scenarios before negotiating. Take the estimate to your employer or the Ministry of Labor as a conversation base.
This tool is an educational estimate, not legal advice or an official calculation. The seniority scale, percentages, and proportional shares can vary by termination type and current regulations. Validate your case with the Ministry of Labor, your payroll, or a professional before signing agreements.
FAQ
Seniority severance, pending vacation, proportional thirteenth month, and unpaid salary. With the default values: C$ 104,166.67.
One month of salary per year in the first 3 years and 20 days per additional year, capped at 5 months. At 3y 6m: 3.33 months × C$ 25,000 = C$ 83,333.33.
Because depending on the exit type (justified dismissal, resignation, agreement) severance applies fully, partially, or not at all. Compare scenarios with the editable field.
No. It is prorated to the months accrued in the period; at 6 of 12 months that is C$ 12,500 on a C$ 25,000 salary.
No. It is an estimate to guide you; each labor case should be reviewed with current regulations or professional advice.
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