Venezuela Increases the Minimum Wage

Venezuelan President Nicolas Maduro announced at the National Assembly a fifteen per cent (15%) increase in the monthly minimum wage, effective February 1, 2015. This presidential announcement has not yet been published on the Official Gazette.

Minimum Wage Increase

The new minimum wage has been set at 5,622.47 bolivars (VEF 5,622.47) per month, and 187.41 bolivars (VEF 187.41) per day.

Cash Payment

The minimum wage must be paid in cash. No other type of payment in kind can be counted as part of the salary.

Fixed Amount for Mixed Salary

The fixed amount for the mixed salary should not be less than the amount of the new minimum wage. For example, if an employee receives a fixed salary plus a variable salary or a fluctuating salary, the amount must not be lower than VEF 5,622.47.

Minimum Amount for Pensions

The new minimum wage established by presidential decree will also apply to pensions paid by the Venezuelan public administration and the Venezuelan Social Security Institute (IVSS).

Part-Time Work

An equivalent fraction for time worked will be paid pursuant to Article 172 of the Venezuelan Labor Law (LOTTT).

Impact over Social Contributions and Employee Benefits

The economic impact of the minimum wage increase on social contributions and employee benefits under the Venezuelan labor regime is as follows:  


Caps for Benefits

February 1st 2015

Meal Benefit for Workers

3 times the minimum wage

Workers who earn a monthly salary equivalent to or lower than VEF 16,867.42 are entitled to a meal benefit.

Day care

5 times the minimum wage

Workers who earn a monthly salary equivalent to or lower than VEF 28,112.38 are entitled to a day-care benefit.

Employers must pay 40% of the minimum wage per month, which is the equivalent of VEF 2,248.99, in order to comply with the benefit.


Caps for Contributions

February 1st 2015

Social Security

5 times the minimum wage

VEF 28,112.38

Employment Regime

10 times the minimum wage

VEF 56,224.76
















Payment of a salary lower than that established by the Decree, or payment after the weekly or bi-weekly pay schedule, will result in a fine equivalent to 120 tax units (VEF. 15,240.00) up to 360 tax units (VEF 45,720.00).

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.