Official Gazette has published the new decree, which makes the Venezuelan minimum wage increase official. It does not mention its peg to the Petro, Venezuela’s national cryptocurrency. According to the law, the minimum wage for the month will rise from 130 VES to 130 VES using Venezuela’s national fiat currency. This contradicts the statements made by the Venezuelan president.
Official Gazette Shows Venezuelans a Real Salary Increase
Oficial Venezuelan Gazette published the facts about the previously reported peg that minimum monthly salaries had to be paid in crypto assets, such as the petro (PTR), following a recent rise. This minimum monthly payment is made in fiat currency. The document does not include the mention of the petro.
Gazette 6691, published on March 15, contains the Decree 4.653.
The mandatory monthly national minimum wage is increased throughout the territory of the Bolivarian Republic of Venezuela, for workers who provide services in the public and private sectors… establishing the amount of one hundred and thirty bolivares (130.00 VES) per month.
This is in contradiction to Nicolas Maduro’s earlier statements, which he made this month about raising the minimum wage to half of a Petro. He also linked the cryptocurrency asset to the price of that minimum monthly wage.
Reactions and explanations
People from all sectors of society were unhappy about the decree and its lack of a minimum wage peg. One of them was the general coordinator of the National Front of the Working Class Struggle, Pedro Eusse, who mentioned this raise had been ”an immense disappointment when discovering that there is no such peg to the petro because that is not reflected in the Official Gazette.”
Eusse further declared:
They said they would anchor the salary at half of a petro. This is an accounting measure which increases as oil prices rise. We now see a frozen salary of $30.
However, Franklin Rondon, representative of the National Assembly, the legislative power entity in the country, declared that, in this case, the petro was just used as a unit of account, and that this doesn’t mean that the minimum wage will be increased every time that this crypto asset rises in value.
Let us know your thoughts on the Venezuelan decree to increase the minimum monthly income and eliminate the Petro. Comment below.
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