The Establishment Of The National Minimum Wage

Author:Mr César Carballo Mena
Profession:Torres Plaz & Araujo Abogados
 
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Content And Scope Of Presidential Decree No. 1.368 Of July 12, 2001 (Official Gazette Of The Republic No. 37.239, Dated 7-13-2001) Regarding The Establishment Of The National Minimum Wage

Overview

1. The discussed Decree No. 1.368, dated July 12, 2001, published in Official Gazette of the Republic (G.O.) No. 37.239 of July 13, issued by the President of the Republic in Council of Ministers in exercise of the powers vested in him by Article 236.1 of the Constitution of the Bolivarian Republic of Venezuela, Article 138 (authority to decree salary raises) and Article 172 (authority to establish minimum wages) of the Organic Labor Law (OLL), established the set of minimum wages that would govern within the reserved realm (Articles 1 to 5).

2. In this sense, in general terms, differentiated minimum wages were established as specified under Article 170 of the OLL and Article 88 of its Regulations (OLL Regulations), providing for five (5) different categories: urban and rural workers, workers of small companies, apprentices and janitors.

Differentiated Minimum Wages

Urban Workers

3. Minimum wage for urban workers (Article 1) was set at Bs. 158,400 per month, i.e., Bs. 5,280 per day (a 10% increase from the minimum monthly wage set for the year 2000, i.e., Bs. 144,000). The referred minimum wage allows an exception (Article 2) for workers at companies employing less than twenty (20) workers.

Small Company Workers

4. Minimum wage for workers at companies employee less than 20 workers (Article 2) was set at Bs. 145,200, i.e., Bs. 4,840 per day (a 10% increase from the minimum wage set for the year 2000, i.e., Bs. 132,000 per month).

Rural workers

5. Minimum wage for rural workers (Article 3), i.e., for those working at agricultural or cattle farms, in activities that can solely be performed in the rural environment (Article 315 of the OLL), was set at Bs. 142,560 per month, i.e., Bs. 4,752 per day (a 10% increase from the minimum wage set for the year 2000 of Bs. 129,600 per month).

Apprentices

6. Minimum wage for apprentices - governed by the system set out in Title V, Chapter I of the OLL - was set (Article 4) at Bs. 118,800 per month, i.e., Bs. 3,960 per day (a 10% increase from the minimum wage set for the year 2000 of Bs. 108,000 per month). The applicability of this differentiated minimum wage shall depend on whether employers actually provide training for such workers (if no training is provided, the employer must pay the general minimum wage established in Article...

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