Venezuela: Pay and benefits

Original and updating author: Juan Carlos Varela, Littler

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Summary

• The amount of pay is set freely by the employer and employee, subject to the national minimum wage and the provisions of any applicable collective agreement. (See Pay - general)
• The frequency of payment of wages must be agreed by the employer and employee, and may not be longer than two weeks, or one month in cases where the employer provides the employee with food and accommodation. (See Payment of wages)
• Employers must deduct from an employee's pay the income tax and social security contributions that the employee is obliged to pay, and pass these on to the relevant bodies. (See Deductions)
• Statute provides that employees who perform equal work, in the same position, with the same work schedule and the same efficiency, must receive equal pay. (See Equal pay)
• All employees must be paid at least the statutory national minimum wage. (See Minimum wages)
• The main form of retirement pension provision is a statutory scheme that forms part of the overall social security system administered by the Venezuelan Social Security Institute. (See Pensions)
• Employers are obliged to deduct income tax due from employees' pay at source and pass it on to the tax authorities. (See Income tax and social security)
• There are various rules regarding pay for employees absent from work due to illness. (See Sick pay)
• Profit-making employers are obliged to distribute among all their employees at least 15% of their net profits achieved in each financial year. (See Profit sharing and end-of-year bonuses)
• Employers are obliged to provide employees with a specified food benefit (cestaticket socialista). (See Mandatory benefits)