Venezuela's minimum wage is the lowest in the entire region. The purchasing power of Venezuelan citizens is very limited, so they are far from purchasing the products that are part of the food basket.
How much minimum wage is required in Venezuela to purchase the entire basic basket?
Óscar Meza, director of the Center for Documentation and Social Analysis of the Venezuelan Federation of Teachers (Cendas – FVM), provided an analysis showing that the Family Food Basket reached $535.23 for the month of January 2024, which, according to the report According to the current exchange rate that appears in the Central Bank of Venezuela, its equivalent in Bolívars would be approximately 20,000 Bolívars. That is, considering that the official minimum wage in Venezuela is 130 bolívars, in order for a Venezuelan to be able to buy everything he needs for a simple family basket that is enough for five people, he has to raise about more than 150 minimum wages.
View of a tree decorated with worthless bills – a result of inflation – as people line up at a gas station (left) during a power outage in Caracas on March 10, 2019. Photo: AFP
When was the last time salary increased in Venezuela?
According to a report by Venezuelan media El Pitazo, this was last published in Official Gazette an increase in the minimum wage It was March 15, 2022. At that time, the 130 bolivars had an approximate value of $30, but due to inflation, this amount is now no more than four units of US currency.
A woman shouts anti-corruption slogans as she takes part in a demonstration organized by health and education workers to demand an alignment of salaries with inflation and against the recently uncovered corruption scandal at Venezuela's state-owned oil company PDVSA, March 27, 2023. Photo: AFP
What is the minimum wage?
The wage, salary or minimum vital remuneration is the amount 'irrelevant“that an employer is legally obliged to pay its employees during their working hours.” This amount is subject to the Labor laws which every country has and each sets an amount. However, one of the main reasons why governments implement this measure is that vital expenses (e.g. the family basket) are lower than income, a situation that is by no means true in Venezuela.
What did Nicolás Maduro say about the minimum wage?
President Nicolás Maduro neither finds a formula to stop the rise in inflation nor guarantees a minimum wage that meets the needs of ordinary Venezuelans. However, the only measure to reduce the damage caused by the crisis is to provide huge subsidies through the Patria system: “I have decided to take the step of raising the minimum indexed total employee income from $60 to $100, the minimum total employee income from February 1st.”he claimed Nicolas Maduro in his message to the nation in early 2024.
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