Monday, May 29, 2023

Calculating benefits is a hindrance to salary adjustments

He says that although the amount of the bonus adjustment is pyramidal, it comes down to making up for Venezuelans’ lack of purchasing power.

Despite the fact that President Nicolás Maduro ordered an adjustment to the Sestatícate and economic war bonds on May 1, the calculation of social benefits and worker benefits depend on the minimum wage which still remains at 130 bolivars.

Fidel Hernández, president of the College of Economists of Bolivar State, assures that given the current inflation rate in Venezuela, it is better for the worker to “receive money now than to receive it in the future.”

He noted that social benefits represented a problem for the proper management of wages, because the implication that the worker would receive retrospectively “prevents companies from making adjustments more in line with the reality they are experiencing.” ”

Remember that any amount continuously given to workers by law becomes part of wages and hence, has to be treated as part of social benefits.

“The executive has to find a way to legalize or make legal adjustments so that these bonuses do not become wages,” he says.

He adds that although the amount of the bonus adjustment is pyramidal, this or another increase should come down to “slightly” easing Venezuela’s purchasing power deficit.

It is necessary to remember that, according to what was published in the Official Gazette, the cestaticket was left at 1,000 bolivars and the war bond – only for the public sector – at BS750 for active workers; BS 1,225 for retirees; and in BS 500, for pensioners of the Venezuelan Institute of Social Security.

These amounts may be adjusted monthly by the National Executive, considering the official exchange rate published by the Central Bank of Venezuela (BCV).

Labor law adjustments

The Economist highlights the need to change the Biological Law of Labour, Workers and Workers (LOT) to “give greater integrity” to the current situation which is different from the time in which it was promulgated.

“I think that sooner rather than later should allow employers to be more efficient in adjusting the wages and salaries of their employees,” he says.

Nation World News Desk
Nation World News Desk
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