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Payroll and Benefits Guide Venezuela

Last updated: May 14, 2023

Currency
Venezuelan Bolívar (VEF)
Employer Taxes
15.75% - 27.00%
Payroll Frequency
Monthly
Employee Costs
6%
Capital
Caracas
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Employer Payroll Contributions
9.00%-11.00%
Social Security
2.00%
Employment Benefit Regime Contribution
2.00%
Housing Regime Contribution
2.00%
Employee Training Contribution (INCES)
0.75% – 10%
Employee Training Contribution (INCES) Workplace Prevention, Conditions, and Environment Contribution (LOPCYMAT)
15.75% – 27.00%
Total Employment Cost
Employee Employee Payroll Contributions
4.00%
Social Security
0.50%
Employment Benefit Regime Contribution (up to ten minimum salaries for urban workers)
1.00%
Housing Regime Contribution
0.50%
Employee Training Contribution (INCES)
6.00%
Total Employee Cost
Employee Income Tax
6.00%
up to 1,000 TU
9.00%
1,000 TU to 1,500 TU
12.00%
1,500 TU to 2,000 TU
16.00%
2,000 TU to 2,500 TU
20.00%
2,500 TU to 3,000 TU
24.00%
3,000 TU to 4,000 TU
29.00%
4,000 TU to 6,000 TU
34.00% 6,000 TU+

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The monthly minimum wage is 130 VEF.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

In Venezuela, the payroll frequency is bi-weekly or monthly. The employer must make the payment for bi-weekly employees on the 15th and 30th of each month.

13th Salary

In Venezuela, a 13th-month payment is mandatory and the payment is generally made at the end of the year. This may differ according to stipulations within the collective agreement.

Working Hours

General

The workweek is generally limited to no more than five eight-hour days and a maximum of 40 hours per week. For employees under 18, work hours are limited to 6 hours a day or 30 hours a week.

Upper management employees, as well as inspection or supervisory employees, may exceed the daily or weekly limits, if:

  • The workday does not exceed 11 hours
  • The total hours worked in 8 weeks do not exceed an average of 40 hours per week
  • The employee is entitled to 2 continuous days of paid rest weekly

Overtime

All work above the standard working week is to be paid as overtime and is regulated by the employment contract or collective agreement. Should overtime be paid, it is calculated as 150% of the regular salary pay rate per overtime hour worked.

 

Leave

Annual Leave (vacation)

In Venezuela, employees are entitled to 15 working days of paid vacation upon the completion of one continuous year of service, plus one additional working day for each subsequent year of service up to a maximum of 30 working days per year.

Public Holidays

Public holidays falling on weekends are usually lost.

Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
12 Feb 2024 Monday Carnival
13 Feb 2024 Tuesday Carnival
28 Mar 2024 Thursday Holy Thursday
29 Mar 2024 Friday Holy Friday
19 Apr 2024 Friday Independence Declaration
1 May 2024 Wednesday Labor Day
24 Jun 2024 Monday Battle of Carabobo
5 Jul 2024 Friday Independence Day
24 Jul 2024 Wednesday Simon Bolivar’s Birth
12 Oct 2024 Saturday Day of the Race
24 Dec 2024 Tuesday Christmas Eve
25 Dec 2024 Wednesday Christmas Day
31 Dec 2024 Tuesday New Year’s Eve

Sick Days

Employees are entitled to take up to 1 year of sick leave in the event of illness or injury. In case of sickness, the employee is entitled to a sick leave allowance paid by the employer for the first 3 days of sickness and subsequently by the social security from the 4th day onwards.

Employees must provide a professional medical certificate within 48 hours of the sickness.

Maternity Leave

Mothers receive a total of 26 weeks of maternity leave, six weeks before the expected due date and 20 weeks following the birth. Salary is paid at the rate of 66.60% by social security.

Paternity Leave

In Venezuela, the father/partner is entitled to 1 week of paid paternity leave.

Parental Leave

Employees are entitled to 14 days of parental leave.

Other Leave

Depending on the collective agreement/employment contract, an employee may be allowed additional leave types as approved between the employer and employee for the following:

  • Bereavement Leave: Employees are entitled to 2 days of paid leave due to a death of a direct family member.
  • Wedding leave: Employees are entitled to 3 days of leave in the event of their wedding.
  • Study leave: Employees are entitled to study leave in Venezuela by law, but the law does not stipulate its length or whether it should be paid or unpaid. Where such leave is granted, the employee’s contract is suspended.
  • Military Leave: Employees are entitled to paid leave while on military service or training.
Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

The termination process varies according to the employment agreement or collective agreement in place and is based on the type of contract and reason for termination.

The Bar Against Dismissals means that employers cannot dismiss, impair the labor conditions of, or transfer a worker without obtain previous authorization from the Office of the Labor Inspector for a term of two years beginning on January 1, 2023.

Notice Period

There is no statutory notice period in Venezuela; this is usually agreed upon in the employment contract.

Severance Pay

Employers enter a severance agreement with their employees upon hiring. Both parties submit a sum of money to a severance fund every month and receive a calculated sum upon termination.

Probation Period

There is no statutory probation period in Venezuela; this is usually agreed upon in the employment contract. However, it is possible to dismiss an employee with no justification during the first 30 days of service. This period is often referred to as the probationary period.

VISA

VISA

Venezuela’s immigration system provides several options for employers of foreign nationals. Requirements, processing times, employment eligibility, and benefits for accompanying family members vary by permit type.

All foreign nationals require a business visa – TR-N Visa – before entry to carry out any business activities in Venezuela, which is generally granted for one year and allows stays of up to 180 days, continuous or cumulative, within the validity of the visa.

The 90-Day TR-L Visa is used by short-term workers on home payroll and permits work for 90 days.

The main work authorization category is the TR-L Visa, which is valid for one year with indefinite extensions. While no labor market testing is required, there is a minimum salary requirement that changes annually. A TR-L Visa application requires previous approval of a work permit by the Ministry of Labor. All foreign nationals, regardless of nationality, must obtain a TR-L visa from a Venezuelan consular post after approval by SAIME (Servicio Administrativo de Identificación, Migración y Extranjería). TR-L visa holders qualify for permanent residence after five years of uninterrupted residence in Venezuela.

VAT

General

The standard rate of VAT in Venezuela is 16%.

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Questions & Answers

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CJ Alves
CJ Alves
3 years ago

What happens if I have a manager that is required to work more than 11 hours in a day? 

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  CJ Alves

Hiu CJ, for supervisors or management, it is possible for the employee to work more than the weekly or even daily hour limits, however, this cannot exceed an average of 40 hours per week over an 8 week period.

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Payroll and Benefits Guide
in Venezuela

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Venezuela
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ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
12 Feb 2024 Monday Carnival
13 Feb 2024 Tuesday Carnival
28 Mar 2024 Thursday Holy Thursday
29 Mar 2024 Friday Holy Friday
19 Apr 2024 Friday Independence Declaration
1 May 2024 Wednesday Labor Day
24 Jun 2024 Monday Battle of Carabobo
5 Jul 2024 Friday Independence Day
24 Jul 2024 Wednesday Simon Bolivar’s Birth
12 Oct 2024 Saturday Day of the Race
24 Dec 2024 Tuesday Christmas Eve
25 Dec 2024 Wednesday Christmas Day
31 Dec 2024 Tuesday New Year’s Eve