Overview

Capital
Caracas
Currency
Venezuelan bolívar

Taxes

Employer
Employee
6% - 0-1,000 VEF
9% - 1,001-1,500 VEF
12% - 1,501-2,000 VEF
16% - 2,001-3,000 VEF
20% - 3,001-4,000 VEF
24% - 4,001-5,000 VEF
29% - 5,001-6,000 VEF
34% - Over 6,001 VEF

Minimum Wage

General
Minimum wage is $138 per month.

VAT

General
VAT is 12% standard rate.

Mandatory Benefits

Pension Fund
Employers contribute between 9-11% of employees wages depending on the employee’s position.
Employees contribute 4% of their wages. The contribution ceiling is five times the minimum monthly wages.
Social Security
Employers contribute 10% - 12% of employee’s salary on monthly, limited at at VEF 37, 108.4 per month.
Employees contribute 4% on a monthly basis, limited at VEF 37, 108.4 per month.
Advance Notice
There is no official advance notice requirement, it depends on the employment contract and what both parties have agreed on. Employees who have “just cause” can resign without any notice.
Severance Pay
Employees are entitled to “seniority pay” of 30 days average wage per each year worked in the company at the time of termination.

Payroll

Additional Employee Withholding
1) Unemployment Insurance
2) Housing Policy
3) Training and Education
1) Employer contributes 2% of the employee’s normal salary.
2) Employer contributes 2% of the employee’s total income received.
3) Employer contributes 2% of the employee’s salary.
1) Employees contribute 0.5% of their monthly salaries. Contribution ceiling is ten times the monthly minimum wage.
2) Employees contribute 1% with no contribution ceiling.
3) Employees contribute 0.5% of their profit sharing payment, with no contribution ceiling.

Termination

Termination Process
Employers cannot dismiss employees without a “just cause” as they are protected by labor stability. After Dismissal, employers have five days to inform the court and justify the dismissal.