Mérida, 7th October 2012 (Venezuelanalysis.com) – Venezuela’s minimum wage will rise by a further 10% in November as part of a “defence of the salary” against inflation, announced President Nicolas Maduro over the weekend.
From 1 November a salaried worker on minimum wage will earn 2973 BsF (US $472), giving workers a total increase of 45% this year from 2047 BsF ($325). Venezuela’s 2.8 million pensioners will also receive the increase.
Salaried workers will also receive an increment in food tickets, meaning that a minimum wage worker’s total monthly income will be 4,113 BsF, ($653).
In April the Maduro government announced that the minimum wage this year would be increased in three tiers; 20% in May,10% in September, and a further 5 – 10% in November, resulting in a total cumulative increase of 38 – 45%.
The decision to raise the minimum wage by the maximum projected amount in November reflects an effort to compensate for higher than expected inflation this year of 32.9% up to August, and currently running at 45.4% annually.
In his speech President Maduro announced that on Tuesday he will request law-making powers from the National Assembly, known as the “enabling law”, in order to introduce “other complementary support measures for labour stability and the defence of the salary and social stability”.
According to the government’s National Institute of Statistics (INE), the basic monthly food basket for a family of five currently costs 2,915 BsF.