Guide to employment, payroll and benefits in

Venezuela (Bolivarian Republic of)

Rivermate offers complete payroll, benefits and compliance services for

Venezuela (Bolivarian Republic of)

01. Overview

Last updated: 

August 19, 2021

Currency
Venezuelan Bolivar Fuerte
Capital
Caracas
Ease of doing business
Language
Spanish
Population
28435940
GDP growth

02. Grow your team in

Venezuela (Bolivarian Republic of)

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Venezuela (Bolivarian Republic of)

, particularly if you don't have established local relationships. You can hire employees in

Venezuela (Bolivarian Republic of)

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Venezuela, officially the Bolivarian Republic of Venezuela, is a country on South America's northern coast that consists of a continental landmass and several Caribbean islands and islets. Venezuela has a territorial expansion of 916,445 km2 and a population of 28 million people in 2019. Caracas is the country's capital and biggest metropolitan agglomeration. The Caribbean Sea and the Atlantic Ocean surround the continental region on the north, Colombia on the west, Brazil on the south, Trinidad and Tobago on the north-east, and Guyana on the east. Guyana Esequiba is a charge that the Venezuelan government has against Guyana. Venezuela is a federal presidential republic with 23 provinces, a capital district, and federal dependencies that protect the country's offshore islands. Venezuela is one of Latin America's most urbanized countries, with the vast majority of Venezuelans residing in the northern cities and the capital. Spanish colonization of Venezuela began in 1522, despite opposition from indigenous peoples. It was one of the first Spanish-American territories to claim independence from the Spanish and join the first federal Republic of Colombia as a department in 1811. In 1830, it became a fully sovereign republic. Venezuela experienced political instability and autocracy during the nineteenth century, and was ruled by regional military dictators until the mid-twentieth century. The nation has had a series of democratic governments since 1958, with the exception of the majority of the region being governed by military dictatorships, and the era has been marked by economic prosperity. Economic shocks in the 1980s and 1990s triggered major political disturbances and widespread civil unrest, including the 1989 Caracazo protests, two attempted coups in 1992, and the impeachment of a President on charges of embezzlement of public funds in 1993. The 1998 Venezuelan presidential election was the impetus for the Bolivarian Revolution, which began with a Constituent Assembly in 1999, where a new Constitution of Venezuela was adopted, due to a loss of confidence in the current parties. In the early years of the dictatorship, soaring oil prices aided the government's populist social welfare policies by briefly rising social spending and reducing economic disparity and poverty. The 2013 presidential election in Venezuela was widely contested, resulting in mass protests and a new nationwide crisis that persists to this day. Venezuela is a developing country that ranks 113th on the Human Development Index. It has the world's largest estimated oil reserves and has historically been a major oil exporter. Previously, the country was a small exporter of agricultural products like coffee and cocoa, but oil soon took over as the primary source of exports and government revenue.

04. Public holidays

05. Types of leave

Paid time off

Employees are entitled to 15 working days of paid annual vacation after 12 months of unbroken employment, plus an extra day for each completed year of service, up to a total of 30 working days per year, in addition to public holidays.

Public holidays

The following days are established holidays in Venezuela:SundaysJan. 1, Monday and Tuesday of Carnival, Holy Thursday, and Good FridayNational Feast DaysHolidays declared by the National Government, states, or municipalities (up to a total of three per year)National Feasts as follows:Declaration of IndependenceBattle of CaraboboIndependence DaySimon Bolivar’s BirthdayIndigenous Resistance Day

Sick days

Employees are entitled to three days of paid sick leave, and from the fourth day onwards, they will get 66.7 percent of their wage from social security for up to 52 weeks.

Maternity leave

For the birth of a child, female employees are entitled to 26 weeks of maternity leave. Maternity leave can be taken up to six weeks before the baby is born, with the remainder taken after the baby is delivered.

Paternity leave

After the birth of a child, fathers can take up to 14 days off work. This leave can be extended if the mother becomes unwell or dies, if the kid becomes unwell, or if twins or multiples are born.

Parental leave

Apart from the already mentioned terms regarding maternity and paternity leave, there are no other provisions in the law of Venezuela regarding parental leave.

Other leave

06. Employment termination

Termination process

Employees in Venezuela have a right to employment security. Dismissals of employees must be referred to the proper labor court for determination of the termination's legality. Without cause dismissal needed between one week and one month's notice, depending on the employee's length of service. Additionally, special requirements apply to redundancy dismissals.

Notice period

In Venezuela, there is no statutory notice period; this is typically agreed upon in the employment contract.

Severance pay

Employees are entitled to a "seniority benefit" equal to 30 days' pay for each year worked.

Probation period

Probationary periods are not specified in Venezuelan labor laws. However, an employee may be terminated without cause during the first 30 days of employment.

07. Working hours

General

A typical workweek is 40 hours, or eight hours per day. Workers are required to take two consecutive days off per week, and Sunday is a rest day for the majority of businesses. Night shifts should not exceed seven hours in duration, and workdays should not exceed eleven hours in duration, day or night.

Overtime

With permission, overtime is permitted but cannot exceed two hours per day, ten hours per week, or one hundred hours per year. Employees are entitled to overtime pay if they work more than 40 hours per week.

08. Minimum wage

General

The minimum wage in Venezuela is set at 10 million bolivars per month.

09. Employee benefits

General

The government mandates health and safety regulations in the workplace to avoid sickness and harm. Employers are not required by law to offer health insurance in the case of public health care. Nonetheless, the Venezuelan public health care system needs resources, particularly equipment and personnel training. Employers may choose to include private insurance choices among their workers' perks.

Employees get vacation incentives in addition to regular pay for vacation days. The company gives employees 15 days of salary for the first year and an extra day for each year of service after that. Employees may get up to 30 days of pay as an annual bonus.

A necessary benefit is described in the Workers' Food Law. Employers must offer one balanced lunch to their workers every day under this jurisdiction. This practice may include an in-house chef or an amount of money for purchasing lunch.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Venezuela (Bolivarian Republic of)

to hire a team takes time, money, and effort. The labor law in

Venezuela (Bolivarian Republic of)

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Venezuela (Bolivarian Republic of)

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Venezuela (Bolivarian Republic of)

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Venezuela (Bolivarian Republic of)

via our Employer of Record / PEO solution.

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