On January 9, 2017, Venezuela’s President Nicolás Maduro announced a 50% increase in the monthly minimum wage for the private and public sectors, effective January 1, 2017.
Minimum Wage Increase
The new minimum wage has been set at 40,638.15 Venezuelan bolivars (VEF 40,638.15) per month and 1,354.60 bolivars (VEF 1,354.60) per day.
The minimum wage must be paid in cash. No other type of payment can be counted as part of the salary.
Fixed Amount for Mixed Salary
The fixed amount for an employee who receives a mixed salary1 cannot be less than the new minimum wage. For example, if an employee receives a fixed salary, plus a variable salary or a fluctuating salary, this amount must not be lower than VEF 40,638.15 per month.
Minimum Amount for Pensions
The new minimum wage will also apply to pensions paid by the Venezuelan public administration and the Venezuelan Social Security Institute (“Instituto Venezolano de los Seguros Sociales” or IVSS).
An equivalent fraction for time worked will be paid pursuant to Article 172 of the Venezuelan Labor Law (known by “LOTTT,” the labor code’s acronym in Spanish).
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