Venezuela: A Guideline to Payroll and Employer of Record

Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Venezuela.

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When we mention the largest oil reserves in the world, your mind may just jump to Russia or a country in the Middle East, but what if we tell you it's a country in South America? The Orinoco Belt in Venezuela is home to the largest oil reserves in the world, with 20% of the world's known oil reserves found there. Venezuela is not only rich in oil, but the country is also immensely rich in talent and human capital.

Do your organization's expansion plans require hiring employees in a country with a determined and talented workforce? Do you lack a physical entity in the country – a key requisite to hire local talent? Neeyamo – one of the top Global payroll providers, assists organizations worldwide with onboarding and managing employees in Venezuela - processing payroll, managing local compliance requirements, benefits, and more

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats




Venezuelan Boliva (VEF)

Official Language


Fiscal Year

01 January - 31 December

Date Format


Country Calling Code


Time Zone

UTC -04:00 (Venezuelan Standard Time)

Global Payroll


What is payroll?

Payroll is the list of compensation to be paid to employees of a company or organization for a set period or date. Global payroll provider companies allow organizations to outsource their payroll, allowing employers to focus on other aspects of their business. 

What is Global Payroll?

Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity. The solution to this is global payroll outsourcing.

What is a payroll system? 

Over the years, Neeyamo – Global Payroll Services has observed these complexities and strived to provide global payroll solutions through a single technology platform – Neeyamo Payroll. Neeyamos global payroll systems ease the process for companies looking to outsource their global payroll requirements and aid them in maneuvering the tricky payroll system in Venezuela. Neeyamos payroll software provides the perfect solution for all your global payroll needs – for employees working in primary geographies, the long-tail region, remote or internationally located. 


Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.

Employee Taxes

Employees make the following payroll contributions:

  • 4.00% - Social Security 
  • 0.50% - Employment Benefit Regime Contribution (up to ten minimum salaries for urban workers) 
  • 1.00% - Housing Regime Contribution 
  • 0.50% - Employee Training Contribution (INCES)

In addition, the following is the income tax bracket:

Up to 1,000 VEF 6%
1,000 VEF – 1,500 VEF 9%
1,500 VEF - 2,000 VEF 12%
2,000 VEF - 2,500 VEF 16%
2,500 VEF to 3,000 VEF 20%
3,000 VEF - 4,000 VEF 24%
4,000 VEF - 6,000 VEF 29%
Above 6,000 VEF 34%

Employer Taxes

Employers must make the following contributions:

  • 9.00% - 11.00% - Social Security 
  • 2.00% - Employment Benefit Regime Contribution 
  • 2.00% - Housing Regime Contribution 
  • 2.00% - Employee Training Contribution (INCES) 
  • 0.75% - 10% - Employee Training Contribution (INCES) Workplace Prevention, Conditions, and Environment Contribution (LOPCYMAT)

Payroll Cycle


Undoubtedly, payroll is a critical process for any organization. The pay cycle in Venezuela refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.


In Venezuela, the payroll frequency is bi-weekly or monthly. The employer must make the payment for bi-weekly employees on the 15th and 30th of each month.

13th Month Cycle

In Venezuela, a 13th-month payment is mandatory, and the payment is generally made at the end of the year. This may differ according to stipulations within the collective agreement.

Global Work


What is EOR?

An Employer of Record services (EOR) provider helps you get rid of the hassle of handling the complexities that come with setting up a new employee in remote locations. They act as the legal employer, facilitate salary payments, and handle everything from health insurance. Payroll taxes and employee benefits to comply with local tax laws and regulations.

This ensures that the client company can focus on the employee’s everyday tasks safely in the knowledge that they have a cost-effective solution as they continue their global expansion.

The EOR industry allows organizations to focus on collaborating with employees in Venezuela for operational tasks, with the knowledge that they have a cost-effective solution to support their Global Payroll & Employer of Record requirements as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

The monthly minimum wage is 1,300,000 VEF.


Overtime work is compensated at one and one-half times the hourly wage agreed to for a normal workday.

An employee who works four or more hours on a weekly rest day or holiday is entitled to compensation for that day plus one and one-half times the wages payable for an additional full day.

Overtime is limited to 10 hours a week and 100 hours per year. 

Data Retention Policy

Employers must keep employment records for a period of 10 years. All documentation must be in Spanish.

Hiring and Onboarding Requirements


Employment selection and conditions of employment must not be discriminatory on the grounds of (Article 21, Constitution; Article 21, New OLL; Article 9, New OLL Regulations):

  • Gender

  • Sexual preference

  • Race

  • Age

  • Social status

  • Religious belief

  • Political ideology

  • Union activity

  • Citizenship

  • Incapacity

  • Social origin

Any other ground that is not compatible with the constitutional statements.

There are no other rules on employment selection and conditions.


Employee Onboarding Documents: 

  • Candidate Name 

  • Address 

  • National ID card 

  • Email Address 

  • Contact Number 

  • CV/Resume 

  • Proof of last three payments (if) 

  • Work Visa 

  • Work Permit 

  • Valid Passport 

  • Tax Identification Number


There is no statutory probation period in Venezuela; this is usually agreed upon in the employment contract. However, it is possible to dismiss an employee with no justification during the first 30 days of service. This period is often referred to as the probationary period.


National Holidays

There are 14 Official Holidays in 2023

  • January 1: New Year's Day
  • February 20: Carnival
  • February 21: Carnival
  • April 6: Maundy Thursday
  • April 7: Good Friday
  • April 19: Declaration of Independence
  • May 1: Labour Day
  • June 24: Battle of Carabobo
  • July 5: Independence Day
  • July 24: Simon Bolivar's Day
  • October 12: Indigenous Resistance Day
  • December 24: Christmas Eve
  • December 25: Christmas Day
  • December 31: New Year's Eve

Paid Time Off

An employee who completes 1 year of continuous service with an employer is entitled to annual leave for a duration of 15 working days. For each year of service, the employee will become entitled to an additional day of annual leave for a maximum of 15 working days.

In case of interruption in the annual leave due to any reason not related to the employee, it can be restarted once the circumstances terminate.

Sick Leave

An employee is entitled to take leave for occupational and non-occupational diseases/ injuries for a period not exceeding 12 months. The employee must provide the employer with a medical certificate that validates their sick leave within 48 hours of absence.

The employer must pay the employee’s salary for the first 3 days. From the 4th day onwards, the employee will receive payment from social security.

Maternity Leave

A pregnant employee is entitled to leave for a period of 6 weeks before delivery and 20 weeks or a longer duration of time due to illness after childbirth. In case the childbirth takes place after the scheduled date of delivery, in such cases, the prenatal leave is extended until the date of the delivery without a reduction in the postnatal leave.

Breastfeeding Break – An employee is entitled to two daily paid breaks of 30 minutes each for the purpose of breastfeeding the child. In case, the workplace does not provide a lactation room, in such cases, the duration of the break will be 1 ½ hours for each of the two breaks.

Paternity Leave

An employee is entitled to paid leave for a period of 14 continuous days from the date of the childbirth.

Adoption Leave

A female employee who has adopted a child under the age of 3 is entitled to paid leave for a period of 26 weeks from the date the child is placed into the family. Male employees are entitled to a period of 14 continuous days in case of adoption from the date of placement of the child in the family.

Other Leave

An employee may be granted leave in the following circumstances:

  • For providing civil or military service
  • For taking care of the spouse or ascendent and descendants up to the first degree of consanguinity, in case of need and for the time period agreed between the parties 

  • For carrying out a study or other purposes of interest. 

  • In cases of force majeure that have immediate and direct consequences and lead to the temporary suspension of work. 

During the above time period of suspension of work, the employer will be under no obligation to provide salary to the employees. The time period during which the activities are suspended will be calculated towards the calculation of seniority of the employees.



The termination process varies according to the employment agreement or collective agreement in place and is based on the type of contract and reason for termination.

The Bar Against Dismissals means that employers cannot dismiss, impair the labor conditions of, or transfer a worker without obtaining previous authorization from the Office of the Labor Inspector for a term of two years beginning on January 1, 2023.

Notice Period

In the case of an unjustified resignation, the employee must give prior notice.

An employee may resign without justification and without notice by paying the employer an indemnity equal to the wages that the employee would have earned during the notice period. There is no statutory notice period in Venezuela; this is usually agreed upon in the employment contract.

Severance Pay

Severance pay is provided for workers who leave following transfer to an inferior position or arbitrary changes to a work schedule, which are considered constructive dismissal.

Workers who leave a job before the expiration of a contract for justified reasons are entitled to severance pay equal to the salary that would have been paid until the end of the contract.

Employees are also entitled to a seniority payment upon termination of employment for any reason. Employers also must give workers an additional month's pay for informing them that they are being dismissed.

Following passage of the 2012 Labor Law, employees may elect to have their payment calculated under a new system based on 30 days' salary (calculated using the employee's final salary) for each year of service since June 19, 1997, or under the old system, in which seniority payments are earned by all employees and begin to accrue as soon as the employee reaches three continuous months of employment.

Under the old system, seniority payments are earned in accordance with the following schedule:

  • five days' wages for each month of service and
  • after the first six months of service, two additional days' wages for each subsequent year up to a total of 30 days' wages.

The statute of limitations for claiming social benefits is 10 years from the date of termination.

If a worker dies, the social provisions payment is made to the next of kin; if more than one family member claims the payment, it is divided among the claimants.



When a company hires foreign workers, it must give preference to those with Venezuelan children and those who have resided in Venezuela for five years or longer. In cases where special technical knowledge is needed and no Venezuelans can provide it, the labor ministry can issue an exemption to this rule, provided the foreign workers train Venezuelans.

All business, labor, and family visa applicants must supply routine information, including the completed visa application form, passport, copy of passport pages containing personal data, recent photograph, copy of flight itinerary indicating dates of entry into and exit from Venezuela and name of the airline, a money order for $60 payable to the Embassy of the Bolivarian Republic of Venezuela and a prepaid priority mail envelope for return of documents. Applications should be made three months in advance of travel.

The TR-N Business Visa is granted to executives, company representatives or entrepreneurs who enter Venezuela to carry out business transactions and negotiations. Any U.S. national or resident applying for this visa will be asked to provide a certificate of his or her employer's incorporation in the U.S. or other foreign country; a letter from the company indicating the applicant's position, purpose of the trip, the company's contact information, information on the time to be spent in Venezuela and associated expenditures; a letter of invitation by a company in Venezuela, if applicable and evidence, if applicable, that the applicant is a majority shareholder in the company.

Contractors who apply for a Transient Labor Visa (TR-L) must have their visit authorized by Venezuela's Ministry for Interior, Justice, and Peace, with agreement from the Ministry for Social Work Process.

Artists, professional athletes and correspondents who work for foreign media companies must obtain authorization for exceptions to visa rules from the Ministry for Interior, Justice and Peace. Requirements include:

  • authorization from the appropriate Venezuelan ministry;
  • a certified copy of the work permit;
  • diplomas, certificates and other evidence of qualifications for the work to be done;

  • copy of the work offer or contract;

  • health certificate;

  • criminal record certificate issued by local authorities and

  • any other document that the consulate requests.

A TR-L visa is granted for one year and includes multiple entries. It may be extended for a second year. 

The spouse, minor children and parents of a TR-L visa holder must apply for a TR-FV Visa. Required documents include a marriage certificate or birth certificate, as appropriate.

Employee Background Checks

Legal and Background Checks

Under the Labor Law, it is unlawful for an employer to inquire about the criminal record of a prospective employee. Criminal records are absolutely confidential and private and the use of criminal records in any employment decision (hiring, promoting, firing) is considered discrimination. 

Under the Venezuelan Constitution, employers are prohibited from asking a prospective employee prior to the offer of a job to take a test for the purpose of determining any drug use or to require a current employee to take such a test as a condition of continued employment. 

Employers are prohibited from requiring female job applicants to undergo medical or laboratory examinations to certify that they are not pregnant. Women may demand a pregnancy test, however, whenever they wish to be protected by the pregnancy provisions of the Labor Law.

Last updated on September 29, 2023

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