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Global Payroll Team
Written by Global Payroll Team
Last updated May 7, 2026
Expert Reviewed
Payroll in Venezuela
Tax in Venezuela
Immigration in Venezuela

Venezuela map

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Mercans offers complete payroll, PEO and HR services in Venezuela

Venezuela has proven immense oil reserves and its natural resources include natural gas, iron ore, gold and other minerals. Despite these factors and the size of its national market, foreign direct investment has been constrained for years by political and economic instability. Employers and investors should also take into account continuing operational volatility, exchange and payment issues, and the importance of close local compliance management.

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Doing Business in Venezuela

Venezuela offers significant natural-resource potential and a large domestic market, but businesses must operate in a challenging regulatory and economic environment. Employers should monitor labour, tax, immigration, payroll, and currency-related compliance closely. Practical conditions may vary significantly by sector and by the ability to obtain reliable local administrative support.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in Venezuela is straightforward. Choose how your company operates from a range of entity types that suit your individual circumstance.

Banking

Banking Hours: 8:00 am to 5:30 pm from Monday to Friday.

Working Week

The standard working week is generally 40 hours over 5 days, with 2 consecutive weekly rest days.

Labor Law

The New Organic Labour Law for Male and Female Employees (New OLL) applies to employment services, regardless of the employee’s nationality. It also applies to employment outside Venezuela if the contract was entered into in Venezuela unless the parties chose a different applicable law.

Main Industries

Petroleum, construction materials, food processing, iron ore mining, steel, aluminum

GDP Growth

5.3%

Dates & Numbers

dd/mm/yyyy

Official State Name

Bolivarian Republic of Venezuela

Population

28.5 million

Capital

Caracas

Major Languages

Spanish

Currency

Venezuelan Bolívar (VES)

Internet Domain

.ve

International Dialing Code

+58

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Venezuela
Caracas, VE
4:27 am, May 15, 2026
21°C
clear sky
83 %
Wind Gust: 0 mph
Clouds: 0%
Sunrise: 6:05 am
Sunset: 6:42 pm

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Payroll

When an employer has 10 employees or more, the wages paid to foreign employees cannot exceed 20% of the total payroll. Employers should also monitor rules on payroll integration, social contributions, mandatory bonuses, and local currency salary administration.

It is acceptable to provide employees with online payslips

Payslip

An employee is entitled to paid annual leave of 15 working days after one uninterrupted year of service, plus 1 additional day per year up to 30 working days

Annual Leave

An employee is entitled to paid sick leave for the first 3 days payable by the employer, with additional sick leave generally payable by social security subject to eligibility rules

Sick Leave

Employees are entitled to 26 weeks of paid maternity leave and 14 continuous days of paid paternity leave, as applicable

Maternity & Paternity Leave

There is generally no statutory notice period applicable, but dismissal is heavily restricted by labor stability rules

Employee Termination

The 13th month payment is mandatory and generally paid out at the end of the year

13th month salary

The formal monthly minimum wage remains very low and compensation in practice often relies heavily on statutory and discretionary bonuses

Minimum Wage

Overtime is calculated at 1.5x the employee’s ordinary rate of pay

Overtime

Employers generally calculate severance under the statutory social benefits regime, commonly using the higher of accrued deposits or the final 30 days per year calculation where applicable

Severance Pay

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Tax and Social Security

Tax residents are taxed at progressive income tax rates while non-residents are generally taxed at a flat rate without the same deductions. There are a number of required contributions such as social security, unemployment insurance, housing policy and training-related payroll contributions.

Tax

Performance or objectives-based bonuses that companies pay out to employees may have different tax treatment depending on whether they are considered salary or non-salary concepts under Venezuelan law and practice.

34%

Corporate Income Tax

34%

Personal Income Tax

16%

Sales Tax

16%

VAT

Social Security

Social security contributions are generally deductible for the employer. IVSS contribution rates depend on the employer’s risk classification, and payroll costs can also include housing, unemployment, and training contributions.

Varies

Social Security Rate

11%+

Social Security Rate for Employers

4%+

Social Security Rate for Employees

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Employment Law

There are no state grants or incentives applicable for employing people unless these are contractually agreed to between the parties.

Employment Agreement

A written employment agreement is not required except for fixed-term and fixed-work agreements and when Venezuelan nationals are hired to provide services abroad.

Working condition

Work hours are regulated based on whether the employee is taking on a day shift, night shift or mixed shift. Certain employees are exempted from these limitations such as management employees, inspection employees, guards and those for whom work schedules are established under collective agreement.

Leaves

All employees are entitled to 15 working days of paid vacation after one year of uninterrupted service. This is increased by one day for each subsequent year of uninterrupted service up to a maximum of 15 additional days.

Employment termination

There are no specific general provisions relating to notice periods for termination of employment. However, many employees are protected by labor stability, that is, they cannot be dismissed without justifiable cause and due procedure.

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Not required

Minimum notice period for terminating an employee

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varies

Total number of public holidays

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40

Working hours per week

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As provided

Total number of days for Compassionate & Bereavement Leave

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Immigration

A foreign worker is generally required to obtain a work visa to begin working in the country. Where it is intended that the worker is hired on a temporary or indefinite basis, the labor transit visa route is commonly used and depends on prior labor authorization.

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Residency permits

On approval of the labor authorization, the company must apply for the visa and related immigration process through the competent Venezuelan authorities, including SAIME. The labor transit visa is generally issued for one year and may be extended subject to renewed labor authorization.

Work Permit Validity

1 year

Required Documents

A valid passport

A completed application form

Labor authorization issued by the Ministry of Labor

Police clearance from the country of origin, duly apostilled or legalized and translated into Spanish where applicable

Proof of payment of the applicable consular fee

Confirmed job offer or employment support documents

Compliant, reliable, error-free and touchless payroll in Venezuela

Build the best team and hire top talent compliantly in Venezuela. Get in touch with Venezuela payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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    FAQs

    What is an Employer of Record (EOR) in Venezuela and how does it work for foreign companies?

    An Employer of Record in Venezuela allows international companies to hire local talent without setting up a Venezuelan legal entity. Mercans acts as the legal employer on your behalf by managing employment contracts, payroll payments, tax withholdings, social security contributions, and full compliance with Venezuelan labour regulations. Your company retains operational control of the employees’ work while Mercans takes on the employment and compliance responsibilities.

    Why should businesses use an EOR instead of establishing a legal entity in Venezuela?

    Using Mercans as your EOR in Venezuela enables faster and more cost-effective expansion into the local market. You avoid the complexities of legal entity registration, local incorporation overhead, and ongoing HR and payroll administration. Mercans handles local labour law compliance, payroll management and tax obligations so your business can focus on strategic growth rather than administrative burden.

    How does payroll outsourcing in Venezuela ensure compliance with tax and labor regulations?

    Mercans’ payroll outsourcing in Venezuela ensures accurate salary processing, correct tax and social security contributions, lawful payment of mandatory bonuses and adherence to employee benefits under Venezuelan law. We ensure that payroll operations follow national standards for employment contracts, compensation, leave entitlements and statutory contributions, helping you maintain full legal compliance and reduce risk of penalties.

    Can an Employer of Record in Venezuela hire employees and manage work permits for international companies?

    Yes. Mercans can hire both Venezuelan nationals and expatriate professionals in Venezuela on behalf of your organisation. We manage contract registration, employee onboarding, payroll setup, and work permit or visa requirements in line with Venezuelan immigration and labour regulations, ensuring your local team is legally employed and compliant.

    What are the main benefits of using EOR and payroll services in Venezuela for global expansion?

    Key benefits of choosing Mercans for EOR and payroll services in Venezuela include rapid market entry without needing to establish a local entity, reduced setup and administrative costs, expert local HR and payroll support, full compliance with Venezuelan employment and tax laws, and scalable workforce management that aligns with your global growth strategy.

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