Since early October, Vice President Rosario Murillo announced that this week, employees from the Ministry of Health (Minsa), the Ministry of Education (Mined), and other public sector organizations would receive their November salaries in advance. Murillo and the state-controlled media have framed these payments as “good news for working families.”
However, public sector employees interviewed by Divergentes say the policy “has its pros and cons.” While the salary advance helps them “get by and manage,” it also leaves them without money later on.
One state employee describes the salary advance as “a vicious cycle because we always end up right back where we started.” They explain that a real financial boost would come from a substantial salary increase, as “the advance is just part of the same cycle of debt, a bit of relief, and then more debt—over and over again.”
Not to be confused with extra income
Economist Marco Aurelio Peña clarifies that salary advances aren’t extra income like a year-end bonus; they simply shift the usual monthly pay forward, which can “mislead people financially and prompt them to take on new debt, leading to financial complications.”
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Peña explains that with these advances, workers might end up spending their money early and then have to “struggle to get through the next month.” While the policy may initially seem helpful, he warns it could lead to financial strain later on, much like the confusion caused by credit cards, which many see as extra funds, though they’re actually debt.

Purchasing power keeps declining
Rosario Murillo also announced that November’s paycheck would include a 4% “adjustment,” attributing it to “the good management and performance of our government and economy.” She refers to this as an “adjustment” rather than a raise for 169,982 public employees, since while nominal wages are increasing, real wages (reflecting purchasing power) have yet to recover since the 2018 political crisis.
For instance, the average nominal salary for central government employees was 11,658 córdobas in 2018. By September 2024, it had risen to 14,744.6 córdobas, reflecting a 26.47% increase. However, real wages dropped from 5,185 córdobas in 2018 to 4,578.5 in September 2024, marking a 13.24% decrease.
Minimum wage rises, but still falls short of basic food costs
Murillo also announced a minimum wage increase for public sector workers in November, from 7,419 to 8,334.52 córdobas, “benefiting” 59,565 public employees. However, the cost of the basic food basket—including 53 essential products for a family of five (two adults and three children)—reached 20,559 córdobas in August, according to the National Institute for Development Information (Inide).
The food portion alone costs 14,738.29 córdobas, meaning that even with the increase, a minimum-wage worker would still need an additional 6,403.77 córdobas to afford the basic food basket for a family of four.
A Divergentes analysis published in May shows that over the past six years, the cost of the basic food basket has risen by 60%. This is a steep increase compared to historical price trends in Nicaragua; between 2012 and 2018, for example, the cost of the basic food basket rose by 40%, highlighting how far the current spike in prices is from economic norms.

Government seeks to “increase consumption” with salary advances
Economist Marco Aurelio Peña believes that these salary advances give public employees immediate liquidity, allowing them to adjust their spending expectations in the short term. “Naturally, when people have cash in hand and the funds hit their accounts, they have purchasing power and will spend,” Peña explains.
He adds that these advances help stimulate commercial activity by providing employees with the means to buy and pay. “But this is also where financial strain can start. Having liquidity can tempt people to overspend,” he notes.
Relentless propaganda around salary advances
A healthcare worker shares that while salary advances can be helpful since they usually arrive at the end of each month, they also bring challenges. “We’re typically supposed to be paid between the 5th and 10th of each month, so when we’re paid 15 or 20 days early, we have to be careful to cover the next month’s bills,” they explain.
Commenting on the Vice President’s propaganda campaign and state media hype around these early payments, another public employee says they see it as “part of the regime’s narrative about living well.” They describe it as a “façade,” adding, “It’s a cycle we’re stuck in with no end. In December, it’s the same story. They pay us early, and that’s nice—we spend and buy things—but then we’re left with nothing by month’s end.”