Even after a recent hike, the minimum wage in Venezuela remains below 1 dollar (USD) per day. Some critics blame the wages on the nation’s highly centralized, top-down policies. Others look to outside geopolitical forces.
With the highest inflation rate in the world, mass emigration, and food shortages, how long can those still living in the country survive? Here, we explore which factors determine a Venezuelan worker’s wages, how much key occupations earn, and how opportunities for self-employment both in-country and via online freelance work for overseas clients have allowed many ingenious and entrepreneurial Venezuelans more attractive alternatives to low paying jobs.
What affects Wages in Venezuela?
“Our economic system — the market economy or capitalism — is a system of consumers’ supremacy. The customer is sovereign; he is, says a popular slogan, “always right.” Businessmen are under the necessity of turning out what the consumers ask for and they must sell their wares at prices which the consumers can afford and are prepared to pay.”
–Ludwig von Mises
Venezuela has gone through multiple stages within its current economic crisis. This crisis has affected, to a great extent, the labor sector and wages in Venezuela. Therefore, it warrants a brief outline of its evolution from 2014 to date:
- 2014: arguably the turning point. This year saw a massive product shortage, an import cessation, and the beginning of an economic recession.
- 2015: continued economic shortages. Limitations in imports failed to create domestic employment, which led to a drop in wages.
- 2016- 2017: the economic crisis in Venezuela was much more acute. Without access to basic necessities, people had to settle for the CLAP boxes (food aid by the Venezuelan state, sold at very low prices but containing poor quality products) or learn to subsist on products produced within the country. Mangoes, artisanal corn dough, and beef offal were many Venezuelans’ salvation at that time.
- 2018-2019: markets began to grow due to the resumption of imports, selective privatization, and dollarization. Companies as well as common people began to import. Individuals with capital traveled to border countries to trade and bring in products.
- 2020-2022: with the COVID-19 pandemic, many Venezuelans began to create small and medium-sized businesses in order to survive. This created employment opportunities such as delivery services, food sales, medicine, clothing, etc. Likewise, the number of freelancers working virtually grew.
How much is the minimum wage in Venezuela?
On March 1, 2022, the State enacted an increase in the minimum wage, setting it at $0.98 per working day. Given the cost of living in Venezuela, this minimum wage still falls short of basic sustainability.
First, it does not even cover the 3rd part of the basic food basket. Second, it is not enough for workers to access health services, transportation, education, etc. This does not mean nobody can live on this salary. State benefits help reduce some living costs such as food (El clap), medicines (socialist pharmacies), and health (community hospitals).
But, if the state provides benefits that help citizens, why do people complain about the minimum wage? The answer is simple, the benefits are not significant enough to guarantee quality of life to Venezuelans. At best, they allow some people not to “starve.”
Venezuelan occupations that Earn Above the Minimum Wage
However, outside of the minimum wage, employers are willing to pay between US $80 and US $600 per month. Higher earnings will depend on several factors:
- Level of employee professionalization: The more specialized the worker, the more he/she will be paid.
- Labor sector: Some labor sectors pay better than others. Areas such as esthetics, masonry, construction, and other related trades are among the higher paid.
- Location: Factors such as population size and average wages per area affect income. For instance, a chef in a Caracas restaurant is likely to out-earn one in Maturín.
These factors are not static, as they can be influenced by the labor market, reputation, type of work, and other categories that allow employers to determine salaries. At the same time, it is important to note that not all Venezuelans earn from Venezuelan employers. Many have entered the world of telecommuting or as freelancers, earning from clients abroad.
Below is a list of key occupations and their respective salaries1 (Data obtained through social surveys):
- Kitchen assistant: US$ 80-100 per month
- Engineer: US$ 150-600 per month (depending on area of work)
- Hairdresser: US$ 300-600 per month
- Chef: US$ 400 per month
- Public university professor: US$ 50-100 (Depends on the level of professionalization)
- Freelancer: US$ 200-800 per month (Depends on area of work)
- Labor staff in public institutions and universities: US$ 40-60 per month.
- Accountants: US$ 100-300 per month
From economic crisis to wage transformation
The first thing to understand is that consumers shape the Venezuelan market. Sectors such as esthetics, which include hairdressing, barbering, makeup, nails and even massages, have remained in demand despite the crisis. Likewise, the food market or products for the basic food basket also have a constant demand.
However, demand alone does not determine wages in Venezuela. Beauticians not only enjoy the benefits of high demand, but they are also often self-employed. For the food market, big profits go to business owners while the workers get wages. Thus, they tend to make a lot less than beauticians.
To combat mass inflation and years of economic decline, the Venezuelan government recently enacted policies such as dollarization and selective privatization on key commodities. These changes created some opportunities for small and medium business, thus more chances for self-employment. Forces outside of Venezuela have also created more possibilities. As the global demand for technical skills grows and cyber spaces make working remotely more feasible, skilled freelancers are starting to find higher paying opportunities with overseas clients.
Though many people still struggle, changes in the country’s economic system and global demands offer a glimmer of hope for Venezuelan workers. As more opportunities arise, particularly for self-employment, wage workers can hope to see more increases as employers will be forced to compete.
Efectivo-cash Flickr photo by Rufino shared under a Creative Commons (CC BY-SA 2.0) license
About the Author
Amy Leguizamón is a Venezuelan anthropologist and professional author.