Tuesday, November 12, 2019

Venezuela Hikes Minimum Wage 30 Percent Amid Economic Crunch

By on May 1, 2016

CARACAS, Venezuela – Venezuela’s president is ordering a 30 percent increase in the minimum wage, the latest move by the socialist government to grapple with high inflation and economic stagnation.

The boost announced Saturday night by President Nicolas Maduro comes after a 25 percent increase on March 1.

The new increase is effective Sunday, which is International Labor Day, and will push the minimum wage to 15,051 bolivars a month. That is about $1,500 at the official exchange rate, but is around $50 at the current black market rate, which largely sets prices of goods for Venezuelans.

Venezuela’s oil export-dependent economy shrank 5.7 percent last year, shortages of basic goods multiplied and prices soared. The government has instituted rolling blackouts and state employees are working only two days a week to conserve electricity.

The Associated Press

NEW YORK, NY - JULY 28: Venezuelan President Nicolas Maduro speaks to the media following a meeting with UN chief Ban Ki-moon at the United Nations (UN) headquarters in New York on July 28, 2015 in New York City. Maduro is in New York to speak with the UN about his country's escalating border dispute with Guyana. (Photo by Spencer Platt/Getty Images)

Venezuelan President Nicolas Maduro speaks to the media following a meeting with UN chief Ban Ki-moon at the United Nations headquarters in New York on July 28, 2015 in New York City. (Photo by Spencer Platt/Getty Images)

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