Employer of record in Venezuela

We make it easy and painless to expand your business into Venezuela. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.

Accelerate your growth into Venezuela compliantly and hassle-free

At Serviap Global we handle all employee onboarding, payroll, compliance, risk, mitigation and benefits, so you can focus on what matters most – your business.

How we can help you expand in Venezuela

As your EOR in Venezuela we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary. 

Your candidate is hired by a PEO in Venezuela provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team. 

Expand to Venezuela with Serviap Global

Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity. 

In just a few days, you can easily and safely build a presence in Venezuela being sure that your staff will be hired in compliance with labor and tax regulations

Table of contents

Quick facts

Venezuelan Bolivar (VEF)


Payroll cycle:


The economy

From 1958 to the early 21st century the republic was more democratic and politically stable than most other Latin American nations.

The republic’s development pattern has been unique among Latin American countries in terms of the speed, sequence, and timing of economic and demographic growth. In the 20th century Venezuela was transformed from a relatively poor agrarian society to a rapidly urbanizing one bolstered by sales of huge petroleum reserves.

Small and medium businesses

Small-, and medium-sized enterprises (SMEs) contribute to the mainstream economy providing vast business opportunities. SMEs are also the breeding ground for larger companies in the future. They contribute significantly to savings and investment and are involved in the development of appropriate technology.


Venezuela is a country of about 28.3 million people (2021). During the petroleum boom in Venezuela in the 70’s, many professional and technical workers relocated from Argintina, Chile, and Uruguay. The average age of the people is 28 years and the population boasts a 96% literacy rate.

Economic opportunities

Venezuela has a mixed economy, which means there are both privately-owned and state-owned businesses.
Venezuela offers U.S. companies excellent offshore talent. Many workers have strong managerial experience and even more are looking for a new opportunity to improve their employment status.

Key sectors of the national economy

Petroleum exploitation and manufacturing is the largest sector of Venezuela’s economy. Petroleum alone makes up more than 50% of the country’s total Gross Domestic Product (GDP)

The most common products from the manufacturing sector include aluminum, cement, steel, electronics, automobiles, food and drinks.

Agriculture is 3% of the economy. Farm and ranching enterprises focus on raising rice, corn, fruit, beef and pork.

Human talent
Venezuela has a young, low-cost, labor pool. In recent years Venezuela’s government has made improving the quality of life of Venezuelan workers a priority with progressive reforms by the working class in wages, social security and workplace conditions.

The government has made the employer/employee relationship tip in favor of the employer through a restructuring that relaxes labor relations and wage income. This makes employees more reliant on bonuses.

Prominent Venezuelan cities for business

Businesses in Caracas include banks, service companies, shopping malls, and a largely service-based economy. The city also serves as a hub for communication and transportation infrastructure between the metropolitan area and the rest of the country.

Important industries in Caracas include chemicals, textiles, leather, food, iron and wood products.

The main income streams come from oil extraction and refining, growing coffee, maize, rice, cassava, sugarcane and cocoa. Mining enterprises include clay, limestone, coal and sand.

Valencia is the third-largest city in Venezuela. It’s an economic hub where Venezuela’s top industries and manufacturing companies are located.

Technological ecosystem

The government has created several programs aimed at improving access to technology for citizens. The government has an interest in promoting technology in the country.

There are a growing number of computer centers opening called “infocenters”. They offer residents technology-based services, including computer training and access to the internet.

Facilities for foreign investment

Venezuela is open to foreign direct investment (FDI) with a large national market and a wealth of natural resources. Foreign direct investment is a high priority for both economic stability and to tamp down inflation.

Other positives include the adoption of production assistance policies to the agri-food industry (coffee, tropical fruits, rice, tobacco, cocoa, alcoholic beverages), as well as to the automobile industry and audiovisual production.


The Pabellon Criollo is the most traditional dish in Venezuela and it’s usually a lunch. It’s made of white rice, shredded beef, black beans and sweet fried plantains.

Arepas is a bread made from cornmeal and can be filled with any kind of cheese, shredded meat, tomato, lettuce and avocado.

Bollitos Pelones is a dish of beef meatballs, covered in a cornmeal topping with tomato sauce. They’re usually eaten at dinner.

General highlights



Num. States/Provinces

23 states

Principal cities

Caracas, Maracaibo, Valencia



Local currency


Date format


Thousands separator format


Country dial code


Time zone



28,300,000 (2021)

Border countries

Brazil, Colombia, Guyana

Continental surface

916.445 km²

Fiscal year

March 31 – December 31



Minimum wage

 VEF$130 per month

Taxpayer identification number name in the country


What you need to know about employing personnel in Venezuela:

Laws and agencies that regulate labor relationships

LawsBrief description
Constitution of Venezuela

The Constitution of the Bolivarian Republic of Venezuela (CRBV) is the twenty-sixth constitution of Venezuela.

It was drafted in mid-1999 by a constituent assembly that was created by popular referendum.

Venezuelan labor lawThe labor law deals with critical issues important to all employers running businesses in order to safeguard employees and the Venezuelan economy.
Social Security

This covers:

– Maternity
– Old age
– Survivorship
– Sickness
– Accidents
– Disability
– Death
– Retirement and unemployment or forced unemployment

Social security contributions payable by the employer could amount to 10%, 11% or 12% of salary, with rates varying according to the risk associated with the employee’s work (capped at five minimum salaries).

Key tax and labor authorities

The Venezuelan Labor Law is called the Organic Law of Labor and workers. This deals with critical issues important to all employers running businesses in order to safeguard employees and the Venezuelan economy.

Labor contracts

Probationary periodsThere is no statutory probation period, but employers can use this time to test whether the employee is suited to the role.


Article 23

Duration of a labor contract:
1. Indeterminate:
Applies when the will of the parties to be bound only for one situation is not expressed.

2. Determined:
Concludes upon expiration of the agreed term, which may not exceed one year. If two extensions are made, the contract will be indeterminate.

3. Fixed-term contract:
The duration of the contract will be for the entire time required for the execution of the work by the worker.

Contractually binding policies and rulesEmployers must have policies that they create written in Spanish. Best practice includes notifying employees and then handing them a policy to sign.
Work hours

Limited to eight hours per day, 40 hours per week, which must be worked in a period of five days with two continuous and mandatory rest days per week.

Night shifts (between 7 p.m. and 5 a.m.) Shifts are limited to seven hours a day, and 35 hours per week.

Basic requirements

Labor Code dictates contracts must contain:

  • Work hours
  • Overtime
  • Wages
  • Vacation
  • Sick leave & pay
  • Maternity / Parental leave & pay


Legal Benefits in Venezuela:

Minimum wageVEF$130.00
WagesGenerally paychecks are distributed monthly and can be in bolivares or USD
OvertimeOvertime shall be paid at time and a half of the regular salary
Christmas salaryMandatory / Paid at year- end
Occupational risk insuranceThe Superintendencia de la Actividad Aseguradora regulates the Venezuelan insurance industry
Vacations or PTOWhen the employee completes one year of uninterrupted work, he/she will enjoy a paid vacation period of fifteen working days
Maternity/Paternity leave

Pregnant employees are entitled to take six weeks’ leave before giving birth and 20 weeks’ leave after giving birth (Article 336, New OLL)

During this period, pregnant employees receive 66.66% of their monthly salary from social security not to exceed five times the minimum salary

Employers can also pay employees, and then deduct the payment from the social security bill

A father is entitled to paid paternity leave from the social security system of 14 continuous days from the date of birth

Careers leave

The New OLL includes leave for care of the spouse, ascendants and descendants up to the first degree of consanguinity, if required and for a time agreed by the employee and employer

Carers’ rights are usually contractual and are set out in collective bargaining agreements or internal policies

Parental leaveParents are entitled to one paid day of leave per month when their children are sick, for the first year after their birth (Article 15, Organic Law on Prevention, Conditions and Health Environment at the Workplace Regulations)
Foster child leave

A foster mother who adopts a child that is under three years of age has the right to 26 weeks’ maternity leave, from the date of the family placement.

The foster mother is also entitled to enjoy indemnification (paid by social security) for her living maintenance and that of her child, and is protected against dismissal for two years from the family placement

Foster fathers of children under three years of age are protected from dismissal for up to two years after the family placement (Article 339, New OLL)

Foster fathers of children under three years of age can take paid paternity leave for 14 continuous days from the family placement.

Employers contribution or labor cost applies to the following:

  • Maternity
  • Old age
  • Survivorship
  • Sickness
  • Accidents
  • Disability
  • Death
  • Retirement and unemployment or forced unemployment

Social security contributions:

Payable by the employer these could amount to 10%, 11% or 12% of salary, with rates varying according to the risk associated with the employee’s work (capped at five minimum salaries).

Employers also pay an amount equal to 2% of the salary for the unemployment insurance system (up to ten minimum salaries), and 2% of the salary for each of the housing assistance schemes and the training of the employee.
Furthermore, employers contribute under the Organic Law on Prevention, Working Conditions and Working Environment (LOPCYMAT) at rates varying between 0.75% and 10% depending on the type of work.

Annual taxable income

Income of resident individuals expressed in tributary units is subjected to tax at progressive rates. As of June 2021, each TU is valued at VEF$20,000.

Over this amountNot over this amountTax % on Excess
0 units1,000 units6%
1,0011,500 units9%
1,5012,000 units12%
2,0012,500 units16%
2,5013,000 units20%
3,0014,000 units24%
4,0016,000 units29%
Over 6,000 units 34%

Corporate tax rates

Income Tax Law reform established the concept of a taxable unit (TU).
The tax code established the initial TU at 1 bolívar fuerte (VEF), with annual basis adjustments according to the variation on the Consumer Price Index (CPI) from the previous year. For 2021, the TU published value is VES 20,000.

Taxable gross incomeTax rate
0-2,000 units15%
2,000-3,000 units22%
3,000 and up34%


Organic Law on Prevention, Working Conditions and Environment of July 25, 2005 helps to monitor things such as disability needs. Employers contribute under the Organic Law on Prevention, Working Conditions and Working Environment (LOPCYMAT) at rates varying between 0.75% and 10% depending on the type of work.

Public holidays

The Labor Code provides for public holidays that are observed in Venezuela:

DateHoliday Name
1 JanuaryNew Year’s Day
15 & 16 FebruaryCarnival
Thursday before EasterMaunday Thursday
Friday before EasterGood Friday
19 AprilDeclaration of Independence
1 MayLabor Day
24 JuneBattle of Carabobo
5 JulyIndependence Day
24 JulySimon Bolivar Day
12 OctoberDay of Indigenous Resistance
24 DecemberChristmas Eve
25 DecemberChristmas Day
31 DecemberNew Year’s Eve


Type of terminationBrief description
Justified dismissalNo severance pay in case of dismissal with just cause, which corresponds to employee’s misconduct (article 79 OLLW). Employee’s capacity is not a just cause for dismissal
Unjustified dismissal

Under an immunity decree it’s not possible for an employer to terminate an employee’s employment for unjustified cause for workers with less than one month tenure, employees in managerial positions and seasonal and occasional workers.

Workers unjustifiably dismissed have the right to request their reinstatement and also a seniority indemnity equivalent to 30 days’ wages per year of service or fraction exceeding six months, up to a maximum of one hundred and fifty days’ wages

Voluntary resignation

When an employee resigns for reasons not attributable to the employer there is no severance payment, but there is a payment of outstanding benefits.

The employee must give prior notice to the employer of his resignation

Other forms of compensation upon termination include:

Length of employmentSeverance amount
Per years of service (and/or fraction of 6 months of service)30 days’ wages per year of service

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