Employment in Venezuela is governed by the Organic Law on Labour and Workers (LOTTT) of 2012, together with the social security, housing, training and pension protection laws that set payroll contributions. Here is what employers need to know about leave, pay, tax and ending employment.
The LOTTT sets paid annual leave with a separate holiday bonus, and some of the longest maternity and paternity leave in the region. Sick leave suspends the employment relationship, with benefits paid under the social security system.
15 working days after 1 year of uninterrupted service, plus 1 extra day for each further year, up to 15 extra days. Leave pay is due at the start of the holiday.
A bono vacacional of at least 15 days’ normal salary plus 1 day per year of service, up to 30 days, paid on top of holiday pay.
6 weeks before and 20 weeks after the birth, paid under social security rules. Unused prenatal leave is added to the postnatal period.
14 consecutive days of paid leave from the birth, or from the placement of a child with the family.
Set up each Venezuelan leave type in IceHrm with its own accrual, carry forward and approval rules, including annual leave that grows with each year of service. Employees see their live balance before they apply, and managers see who is away on a shared team calendar. Leave management →
The minimum wage is set by decree. It has been VES 130 a month since 15 March 2022, and the government has since raised workers’ income mainly through non-salary bonuses rather than the wage itself. Salaries are often agreed or indexed in US dollars.
In force since 15 March 2022. Bonuses paid on top are set separately by the government.
Up to 8 hours a day and 5 days a week, with 2 consecutive paid rest days. Night shifts: 7 hours a day and 35 a week; mixed shifts: 7.5 and 37.5.
At least 50% on top of the normal wage. Overtime is limited to 10 hours a week and 100 hours a year, and total work to 10 hours a day.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so overtime and holiday premiums reflect what was actually worked. Multi-currency payroll suits teams paid in bolívares or US dollars. Time & attendance →
Residents pay tax on their worldwide income at progressive rates expressed in tax units (unidades tributarias, TU), so the bands in bolívares change whenever the tax unit is updated. Employers withhold tax from salaries, and individuals file an annual return by 31 March for the previous calendar year.
| Annual taxable income | Rate | Less |
|---|---|---|
| Up to TU 1,000 | 6% | Nil |
| TU 1,000 – TU 1,500 | 9% | TU 30 |
| TU 1,500 – TU 2,000 | 12% | TU 75 |
| TU 2,000 – TU 2,500 | 16% | TU 155 |
| TU 2,500 – TU 3,000 | 20% | TU 255 |
| TU 3,000 – TU 4,000 | 24% | TU 375 |
| TU 4,000 – TU 6,000 | 29% | TU 575 |
| Over TU 6,000 | 34% | TU 875 |
Tax = taxable income × rate − the amount in the last column. Severance benefits paid under the labour law are not taxable income for employees.
Employers pay several separate contributions, each with its own base and cap, and withhold the employee shares from pay. Since May 2024 a special contribution to protect social security pensions also applies.
| Contribution | Base | Employer | Employee |
|---|---|---|---|
| Social security (IVSS) | Normal wages, up to 5 minimum wages | 9%, 10% or 11% | 4% |
| Employment benefit regime | Normal wages, up to 10 minimum wages | 2% | 0.5% |
| Housing fund | Total (integral) salary, no cap | 2% | 1% |
| Training (INCES) | Total salaries; employee share on profit sharing | 2% | 0.5% |
| Occupational safety (LOPCYMAT) | Total salaries | 0.75–10% | – |
| Pension protection | All salary and non-salary bonus payments | 9% | – |
The social security rate depends on the company’s risk class, and the occupational safety rate on its risk as assessed by INPSASEL. The pension protection contribution was set at 9% by decree in May 2024; the law allows up to 15%, set by the President each year. It is paid monthly to SENIAT, and the base for each employee cannot be lower than the indexed minimum integral income set by the government.
Build Venezuelan pay the way you already structure it, with your own salary components, deductions and formula columns, such as capped IVSS and pension protection columns. Want to know how well IceHrm handles payroll calculations for Venezuela? Contact us or see Payroll →
Venezuelan law gives employees strong job stability. Employees on indefinite contracts are protected from their first month of service (senior management excepted), and a dismissal without one of the causes listed in the LOTTT can be challenged, with reinstatement and back pay as the main remedy.
| Uninterrupted service | Notice |
|---|---|
| More than 1 month | 1 week |
| More than 6 months | 15 days |
| More than 1 year | 1 month |
Every employee builds up social benefits, whatever the reason employment ends. The employer credits 15 days’ salary each quarter, plus 2 extra days a year after the first year (cumulative up to 30 days), to a trust, a national fund or the company’s books. On termination the employee receives the higher of that guarantee and a retroactive calculation of 30 days’ final salary for each year of service (or part year over 6 months). Employees who leave within 3 months receive 5 days’ salary per month. Payment is due within 5 days of termination, with late-payment interest after that.
When employment ends for reasons outside the employee’s control, or after an unjustified dismissal where the employee does not seek reinstatement, the employer must also pay an indemnity equal to the social benefits, effectively doubling them. Employees with special protection (inamovilidad), such as new parents, can only be dismissed with prior approval from the Labour Inspectorate. The government has also repeatedly extended a general job-security decree, so check whether one is in force before any dismissal.
Paid holidays come from the LOTTT and the national holidays law. Sundays are also holidays under the LOTTT, and national, state or municipal authorities can declare up to 3 more days a year.
Employees who work on a holiday receive the day’s salary plus the work done at a premium of at least 50%.
Leave groups give each office its own holiday calendar, so you can add Carnival, Holy Week and any extra declared days for your Venezuelan team and apply them automatically. Holiday calendars →
Contracts should preferably be in writing, in two originals, one for the employee. If there is no written contract, the employee’s account of its terms is presumed true unless the employer proves otherwise.
Send contracts for e-signing, store them on the employee’s record, and track onboarding with task lists so every registration is done on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Venezuela, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Venezuela? Talk to us.
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