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.
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).
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:
Benefits Caps for Benefits February 1st 2015 Meal Benefit for Workers 3 times the minimum wage Workers who earn a...