On Official Gazette N° 6,484 of the Bolivarian Republic of Venezuela, dated October 11th, 2019, Executive Order N° 3,997 was published, by means of which the minimum monthly wage was established, mandatory in all the national territory for workers in the public and private sector in the following way:
- Starting October 1 of 2019, the minimum monthly wage was set in BsS. 150,000.00 or BsS. 5,000.00 daily, upon that date.
- In the case of teenage workers and trainees, the minimum wage was also increased upon October 1 of 2019, setting the minimum monthly wage for this category of workers in BsS. 112,500.00 or BsS. 3,750.00 daily, upon that date.
- When the work of teenagers or trainees is made in equal conditions to the rest of the workers, their minimum wage will be equivalent to the one established for ordinary workers, according to article 303 of the Organic Law of Labor and Workers (“Labor Law”).
- The minimum wages established in this Order, must be paid in cash and will not include in them any payment in kind.
- As minimum amount for the pensions for retirement and old age of the National Public Administration and the pensions granted by the Venezuelan Institute for Social Security (IVSS for its Spanish acronym), it was set the minimum wage provided for ordinary workers.
- When the work is agreed to be for a limited time, the minimum wage will be according to the article 172 of the Organic Labor Law, which means that it will be paid in fractions respective to the time worked.
- The payment of a salary inferior to the established minimum wage for each category of workers (trainees and ordinary workers), will make the employer pay the wage according to article 130 of the Organic Labor Law, which means that he’ll pay the difference between the minimum wage ante the effectively paid wage, and its incidences in the rest of the labor benefits and respective interests. Additionally, it will give place to an imposition of fines that range between 120 Tax Units (T.U) (BsS 6,000.00) and 360 T.U (BsS. 18,000.00).
- This Order entered into force on October 1 of 2019.
In the same Extraordinary Official Gazette as previously identified, the Executive Order No. 3,998 was also published, which established the adjustment in the payment of the “Socialist Food Voucher” as follows:
- As of October 1 of 2019, for workers who provide services in the public and private sector, the amount of BsS. 150,000.00, notwithstanding the provisions of article 7 of the Executive Order with Rank, Effect and Force of Law of the Socialist Food Voucher for Workers.
- Employers, both in the public and private sectors, will pay monthly to each worker the benefit of the socialist food voucher, and considering that it has no wage incidence, therefore cannot make deductions on it, unless expressly requested by the worker for the acquisition of goods and services destined to meet their needs.
- The entities of the public and private sectors, which keep the benefit established in article 4, numerals 1 to 4 of the Socialist Food Voucher Law, in operation (granting the benefit through dining rooms, hiring of food prepared by specialized establishments) they must do so through the provision of an electronic food card or, preferably, coupons or vouchers issued by a financial institution or establishment specialized in the administration and management of social benefits, in accordance with the provisions of article 3 of this Order.
- The application of the modalities established in the Executive Order with Rank, Effect and Force of Law of the Socialist Food Voucher for Workers is maintained, with the preferences referred to this Order, prior authorization of the Executive Vice President of the Bolivarian Republic of Venezuela, the Minister of Popular Power for the Social Process of Work, considering the capacity and conditions of the work entities, prior consultation to the workers, and in order to facilitate the enjoyment of the socialist voucher benefit, may impose through Resolution, the obligation to pay said benefit in full or partially in the form of coupons, tickets or electronic cards, at his entire discretion.
- This Order entered into force on October 1 of 2019.
This report presents a general description of aspects related to Executive Orders N° 3,997 and N° 3,998, respectively, and does not constitute a legal opinion directed to a specific situation. In case of doubts, comments, or for more information, please contact InterJuris Abogados (www.interjuris.com) +58 (212) 750 1200