On January 15, 2024, President Nicolás Maduro announced the adjustment of the “war bonus” for public employees in Venezuela, starting February 1, 2024 in a context of economic complexities facing the country. These types of ads require detailed analysis.
First of all, it is necessary to highlight that the minimum wage in Venezuela has not been increased. This has remained at 130 bolivars per month since the last salary increase decreed in March 2022 and is equivalent to $3.60 at the official rate as of the date of the announcement.
President Maduro’s announcement is about increasing the war bonus and basket ticket, and these are not part of a worker’s minimum wage. Here lies the constant use of the term comprehensive minimum income and not minimum wage. The lack of a direct increase in the minimum wage suggests that the government could be looking for palliative solutions as the country’s economic activity improves.
Secondly, we must wait for the publication of the Official Gazette to clarify the amount of the basketticket. Considering that last year the presidential announcement did not correspond to what was stated in the official gazette.
Regarding this last point, following the presentation of the Minister of Labor, Francisco Torrealba, since last May 1, 2023, with the publication of Decree No. 4,805, which establishes “the increase in the minimum monthly income for the protection of the Venezuelan people”, the basket ticket must be paid indexed to the equivalent of forty dollars per month, according to the rate published by the Central Bank of Venezuela, at the time of payment.
However, article 1 of said Decree establishes:
“The value of the Socialist Cestaticket is adjusted at the national level, for all workers in the public and private sectors, being set at the amount of one thousand bolivars without cents (Bs. 1,000.00), in accordance with the principles and parameters of the national legislation on economic measures for the protection of the Venezuelan People, without prejudice to the provisions of article 7 of the Decree with Rank, Value and Force of Law of the Socialist Cestaticket for Workers.”
For its part, article 7 of the Decree with Rank, Value and Force of Law of the Socialist Cestaticket for Workers, establishes:
“(…) when there are reasons of social interest that so warrant, the National Executive may decree variations regarding the modalities, terms and amounts applicable to the fulfillment of the benefit. (…)”
In accordance with article 1 of the May 1 Decree, Article 5 stipulates:
“The National Executive will order the monthly adjustment, taking as a reference the exchange rate published by the Central Bank of Venezuela, of the amounts set in this Decree for the Socialist Cestaticket and the Bonus against the Economic War, and may order their adjustment for the purposes of protect its value and the purchasing power of workers.”
From the partially transcribed content of these articles, it is not reflected anywhere that the amount for the socialist ticket basket must be indexed to the amount of forty dollars per month for all workers, according to the exchange rate published by the BCV; since a fixed and precise amount was established in bolivars, which is not anchored to any variable that depends on the value of the currency published by the official exchange market regulated by the Central Bank of Venezuela.
