Caracas, April 28, 2020
FLASH REPORT – LABOR
1. LEGAL INSTRUMENT
|Decree No. 4,193 Increase in the Minimum Wage
|Special Issue 6,532
The full name of Decree 4,193 is “Decree No. 11 within the Framework of the State of Exception and Economic Emergency for an Increase in the Monthly Minimum Wage and Social Protection.”
2.1. Mandatory National Monthly Minimum Wage
The mandatory minimum monthly wage to be paid throughout the territory of the Republic to workers employed in the public and private sectors is set at Bs. 400,000.00, commencing on May 1, 2020.
2.2. Monthly Minimum Wage to be paid to Adolescent Apprentices
The minimum wage to be paid to this group has been set at Bs. 300,000.00.
3. SOCIALIST FOOD COUPON
The amount of the Socialist Food Coupon payable to workers in the public and private sectors has been set at Bs. 400,000.00 per month.
4. MINIMUM MONTHLY INCOME
The Decree has set the minimum income that workers in the public and private sectors are entitled to receive at Bs. 800,000.00 per month.
5. ADJUSTMENT OF WAGE SCALES IN THE PUBLIC SECTOR
The Decree also provides that the wage scales in the public administration are to be adjusted based on the percentage of the increase stipulated in Article 2 of the Decree.
6. OBLIGATION TO PAY IN CASH
The minimum wages set in the Decree must be paid in cash and may not include any payments in kind as part of wages.
The amount of the minimum wage mentioned in Section 2.1 of this report is the amount payable to retirees and pensioners of the National Public Administration, as well as the amount of the pensions paid by the Venezuelan Social Security Institute (I.V.S.S.). Retirees will also be entitled to receive a non-remunerative bonus of Bs. 300,000.00, to be paid monthly via the Plataforma Patria.
8. EFFECTIVE DATE: May 1, 2020.
Benson, Pérez Matos, Antakly & Watts
Carlos A. Godoy L.