Will the minimum wage be increased in Venezuela, when will it happen, and by how much is the increase?

The increase in the minimum wage is one of the most awaited news in Venezuela in recent months, amidst the severe economic crisis that affects the income of millions of households. Despite this, Nicolás Maduro did not make any pronouncements on the matter, nor did he make any modifications to the labor conditions.

Workers' unions are organizing marches with the purpose of urging the Venezuelan government to evaluate an increase in the minimum wage, in order to cover the cost of the basic basket in the midst of the economic crisis that the country is going through. What will happen if this requested increase is not generated? In the following text, we will explain it to you.

When would they announce the increase in the Minimum Wage in Venezuela?

The president of Fedecámaras, Carlos Fernández, revealed that the increase in the minimum wage in Venezuela in 2023 could happen on May 1st. This date is tentative since it is 'Labor Day' and important announcements are always made on that day, so it is possible that the increase will occur on that same day.

How much is the current Minimum Wage?

According to the Central Bank of Venezuela (BCV), the current minimum wage is equivalent to 6.14 dollars. Public sector workers, workers, teachers, and even retirees and pensioners have joined the protests to demand an increase in dollars and better working conditions in their institutions. If the increase in the minimum wage in Venezuela is approved, this income would rise to 50 dollars.

What does the Constitution say about the increase in the Minimum Wage?

The Venezuelan Constitution is clear: the minimum wage must cover the basic basket. However, if this mandate is followed, the increase in the minimum wage should be about 500 dollars, something that has already been declared impossible, according to Jorge Roig, former president of the Federation of Chambers and Associations of Commerce and Production of Venezuela (Fedecámaras).

What do we know about the increase in the Minimum Wage?

The president of Venezuela, Nicolás Maduro, called on workers throughout the nation to take to the streets to protest against the sanctions imposed by the United States. He also stated on Twitter: "We will always defend the integral salary of the workers of Venezuela. We will give birth to the resources to continue investing in health, education, and housing".

On the other hand, a message was circulated on WhatsApp revealing that the country's minimum wage would be raised to 780 bolivars, equivalent to 32.03 dollars as of March 2023. However, the Maduro regime has not yet announced a salary adjustment.

The president of Fedecámaras, Carlos Fernández, pointed out that it will depend a lot on the scheme allowed to the private sector and the public sector to make the remuneration effective. He also indicated that a different approach must be sought for the country's problems, and "stop addressing the issue with monetary policies, but with stimulus policies in supply and demand".

What are the workers demanding in Venezuela?

During the demonstrations, workers in Venezuela have demanded an increase in the minimum wage to 50 dollars. "Workers demand salaries and pensions indexed to the cost of the basic basket. We will not accept the agreement between Fedecámaras and the government that violate our rights to have a dignified salary", said the spokesperson for the Nursing College in the Capital District, Ana Rosario Contreras.

According to the data from the Documentation and Social Analysis Center of the Federation of Teachers (Cendas), "a Venezuelan family of five needed, last December, 63.24 current minimum wages, about 400 dollars, at the current exchange rate set at 20.52 bolivars per dollar, to cover the Basic Basket".