14:23 GMT +325 February 2017
Live
    Venezuela's President Nicolas Maduro (File)

    Venezuela's President Hikes Minimum Wage Amid Skyrocketing Inflation

    © REUTERS/ Carlos Garcia Rawlins
    Latin America
    Get short URL
    339832

    Venezuela's President Nicolas Maduro has hiked the minimum wage and pensions for the fith time in one-year period.

    MOSCOW (Sputnik) — Maduro has announced a 50-percent hike in the minimum wage and pensions amid increasing inflation rate.

    "To start the year, I have decided to raise salaries and pensions… Fifty percent [increase], I mean that pensions and minimum wage will account for 40, 638 bolivars [$4,070] since January, while minimum composite income will reach 104, 358 bolivars [$10,451], with 63,720 bolivars [$6,382] allocated for the purchase of the basic food basket," Maduro said Sunday on his weekly TV and radio program.

    This is the fifth minimum wage increase over the last year.

    "In times of economic war and mafia attacks… we must protect employment and workers' income," Maduro said.

    He stressed that the minimum wage increased by 536 percent, compared to January 2016 data.

    In January 2016, Maduro declared an economic emergency in Venezuela. The announcement came two days after Venezuela’s oil price dropped to $24 a barrel, the lowest mark in 12 years, while up to 96 percent of Venezuela’s budget depends on oil revenues. In February, Venezuela's annual inflation rate passed the historic 180-percent mark in 2015.

    According to the International Monetary Fund, 2016 inflation rate in Venezuela could be over 700percent, while its GDP could drop by some 10 percent.

    So far there is a number of bolivar-dollar exchange rates in Venezuela. The official fixed exchange rate DIPRO remains unchanged — ten bolivars per dollar. As regards additional exchange system DICOM, one dollar costs 678 bolivars, while the black market's dollar price reaches 3,300 bolivars.

    Never miss a story again — sign up to our Telegram channel and we'll keep you up to speed!

    Related:

    Over Dozen People From Disappeared Venezuelan Mi-17 Copter Alive, Relatives Say
    Venezuela Formally Accepts Transfer of Mercosur Presidency to Argentina
    Profit From Starvation: Venezuela's Food Traficking Problem
    Maduro Calls Withdrawal of Venezuela's Largest Banknote 'Monetary Upheaval'
    Tags:
    hike, pensions, minimum wage, Nicolas Maduro, Venezuela
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment

    All comments

    • avatar
      marcanhalt
      Samrt move. Maduro's party IS the party of the poor, which accounts for over 70% of the population. The fact that the ruling elite took away the larger denominational bills was a ploy to keep the poor from even dreaming big. Instead, he has met these same elite in the streets now by forcing them, as the employers of the largest corporations, to pay the same people they hope to agitate against Maduro. And since it is state-owned, the oil industry will have to pay its people first, before the real profits are eaten up by an elitist parliament can spend it. Smart. Very smart.
    Show new comments (0)