Maduro Maintains Freeze on Venezuela’s Minimum Wage While Increasing Bonuses

Venezuelan President Nicolas Maduro announced a boost in state bonuses for public sector employees while maintaining the minimum wage at less than $4 per month. The comprehensive minimum income for workers has been raised to $130, combining the stagnant minimum wage of $3.50 with a $40 food bonus and an increased “Economic War Bonus” from $60 to $90.

This bonus, aimed at mitigating the impact of US sanctions, is exclusive to the 5.5 million public sector workers. However, this adjustment does not affect other benefits such as additional bonuses, unemployment benefits, or pensions, which are tied to the formal minimum wage last updated in 2022.

Despite the raise, union leaders and the Confederation of Venezuelan Workers criticize the wage policy, advocating for a minimum wage of at least $200 to address the soaring cost of living, particularly concerning food expenses averaging over $500 monthly for a family.

Venezuela grapples with chronic inflation and the devaluation of its currency, the bolivar, exacerbated by informal dollarization in most commercial transactions. As the country approaches presidential elections on July 28, Maduro is expected to seek reelection, with his main opposition challenger disqualified from running.