Constitutional Law on Productive Councils for Workers

New Legislation Enacted

A new law regulates the organization and operation of Workers’ Productive Councils (Consejos Productivos de Trabajadores y Trabajadoras), whose purpose is to participate in the management of the productive activity and distribution of goods and services in the work entities. The law, which was published on the Official Gazette No. 41,336, dated February 6, 2018, is already in force.

Increase in the National Minimum Wage, Effective February 15, 2018

New Order or Decree

According to Presidential Decree N° 3.301, published on Official Gazette N° 41.351, dated March 1, 2018, the national minimum wage was increased by 58%, beginning on February 15, 2018. This increase raises the minimum wage from VEF 248.510,41 per month (VEF 8.283,6 per day) to 392.646,46 per month (VEF 13.088,21 per day). For apprentices, the minimum wage was raised from 186.382,81 per month (VEF 6.212,76 per day) to VEF 294.484,84 (VEF 9.816,16 per day).

Increase in the Tax Unit, Effective March 1, 2018

New Order or Decree

The Tax Unit was increased by the Customs and Tax Administration Service (SENIAT) from VEF 300 to VEF 500, as published on the Official Gazette N° 41.351, dated March 1, 2018, Resolution SNAT/2018/0017. Consequently, the food benefit increased from VEF 549.000 to VEF 915.000, effective from March 1, 2018 (being the food benefit equivalent to 1.830 Tax Units per month).

Payments Must Be Made With New Currency Conversion Rate, Effective June 4, 2018

New Order or Decree

As of June 4, 2018, payments must be made using a new national currency conversion rate, which eliminates three zeros from the “Bolívar Fuerte,” which is the current currency. This new conversion rate, which will be known as “Bolívar Soberano” and represented with the “Bs.S” designation, will consist of eight banknotes being Bs.S 2, Bs.S 5, Bs.S 10, Bs.S 20, Bs.S 50, Bs.S 100, Bs.S 200 and Bs.S 500, and two coins being 50 cents and Bs.S 1. The new conversion rate is mandated by Presidential Decree N° 3.332, published on Official Gazette N° 41.366 dated March 22, 2018.