Increases to the Minimum Wage and Meal Benefit

New Order or Decree

Author: Daniel Jaime, Associate — Littler Mendelson, P.C.

Effective on September 1, 2017, the monthly minimum wage was increased by 40% and the calculation base of “the meal benefit” (known as Cestaticket Socialista) to 21 tax units per day. The new minimum wage, which must be paid in cash, has been set at VEF 136,544.18 per month and VEF 4,551.47 per day, with some exceptions. The Cestaticket must be paid out in cash or credited to workers’ payroll accounts. Both increases apply to the private and public sectors and impact the calculation base for mixed salaries, pensions, social contributions, employee benefits, and sanctions, among other types of payments or benefits.