Venezuela - Minimum Wages - 2011

25 November 2011

Decree n° 8.167 updating Minimum Wages for 2011 of 26 April 2011 (Decreto n° 8.167, Gaceta Oficial n° 39.660)

Bolivarian Republic of Venezuela Constitution of 30 December of 1999 as amended up to February 2009.

Organic Labour Act of 27 November 1990, as amended up to Organic Labour Act of 19 June 1997 (Official Gazette No. 5.152)

Decree n°4.447 Regulating the Organic Labour Law Decree of 28 April 2006 (Decreto n° 4.447, Reglamento de la Ley Orgánica del Trabajo, Gazeta Oficial No. 38 426, April 28, 2006 pp.1)

Special Law for improving the conditions of janitors "Ley Especial para la dignificación de las trabajadoras y trabajadores residenciales" issued by Decree published on May 5th, 2011.

Worker is any natural person who performs any kind of task for another legal or natural person and under his dependence and in exchange of remuneration.
Employee is any worker in whose tasks there is a predominance of non-manual work or tasks which imply an intellectual effort.
Self-employee is the person who regularly performs his work under no dependence of any employer.

Shall mean a natural or legal person who, in its own name, and for its own or another’s account, is in charge of exploiting an enterprise, concession or undertaking of any nature or importance, whatever the number of workers he employs.

Shall mean any benefit or earning, whatever the denomination or method of calculation, always assessable in cash, that corresponds to a worker for the rendering of services.

Minimum wage is the minimum remuneration that a worker is entitled for his work. No labour relation can be agreed under a lower rate of payment.

The President of the Republic fixes minimum wages based on the recommendation of the Tripartite Commission for the Revision of Minimum Wage and a National Round-table on Social Dialogue ("Mesa de Diálogo social de carácter nacional"). The National Round-table on Social Dialogue is made up of government, workers’ and employers’ representatives and the most representative organizations of democratic economy ("organizaciones mas representativas de la economia popular").
If the National Round-table on Social Dialogue has not adopted a recommendation following 30 days of deliberations, the Executive may unilaterally fix minimum wage rates.
In case of a disproportionate increase in the cost of living, the Executive, having taken into consideration the comments of: workers’ and employers’ representatives; the National Economic Council; and the Central Bank, may fix minimum wages through a decree with a general or restrictive scope which may vary according to categories of workers and geographic areas.

Wage rates may be fixed by collective agreement, which cannot be lower than those fixed by the authority.
Employers and employees may inform the government that they have previously negotiated and agreed upon a minimum wage rate applicable to the category or sector they represent. The government may adopt the proposed rates as the minimum wage, once it has been checked that those employers and employees represent the majority of their category.

Yes - the cost of living shall be taken into account when fixing the minimum wage rate.

Yes. The economic circumstances of the country may imply the need of adjust the minimum wage rate.

The last adjustment of the minimum wage for 2011, does not set forth the exclusion of any category of workers from the application of the national minimum wage rate. The minimum wage rate shall apply to both private and public sector workers which also includes retired workers. The general minimum wage rate is applicable to urban and rural workers, however there is a different minimum wage rate for youth and apprentices.

No exclusions from the application of the minimum wage rate as for any category of worker.

The minimum wage rate for apprentices and youth is fixed in 1.151,19 Bs per month or 38,37 per day.

The last adjustment of the minimum wage for 2011, does not set forth the exclusion of any category of workers from the application of the national minimum wage rate, and therefore domestic workers shall be entitled to receive 1548,21 Bs per month or 51,60 Bs per day, from September 1st, 2011.

The minimum wage rate for apprentices and youth is fixed in 1.151,19 Bs per month or 38,37 per day.

When the contract of employment is agreed in part-time basis, the worker shall be entitled to at least the proportional minimum wage rate to the hours of work performed.

The legislation expressly provides that janitors shall enjoy at least the national minimum wage rate, which shall be paid fortnightly.

From 1st September, 2011, the minimum wage rate shall be fixed in 1.548,21 Bs per month or 51,60 Bs per day.

25 April 2011

The legislation provides that the minimum wage shall be paid in cash. In-kind allowances, such as the provision of food and accomodation are permitted as a part of the remuneration, but shall not imply a reduction of the minimum wage rate.

Yes - The minimum wage is fixed periodically by Decree in monthly and daily basis.

Yes - The minimum wage is fixed periodically by Decree in monthly and daily basis.

The minimum wage rates shall be adjusted, at least once per year, taking into account, among other factors, the cost of living.

An authorized inspector shall verify compliance with all labour standards, and for this purpose shall carry out inspections. The labour inspector shall report to the Ministry of Labour in the first 10 days of each month with the result of the analysis of the infomation collected.

The employer who fails to comply with minimum wage regulation shall be imposed a fine of no less than the equivalent to a quarter of a minimum wage and not higher than the equivalent to one and a half the minimum wage.
In addition, the employer shall pay the difference between the amount that ought to have been paid and the amount actually paid.

In the event of a repeat offence, the fine shall be increase in one half the minimum wage.
In the event of failure to comply with the fines imposed, the offender shall be arrested, for a duration equivalent to one day, each quarter of a non-paid minimum wage, and for a total duration not exceeding 30 days.