Global EOR Services in Venezuela
Find, Hire & Pay Employees in Venezuela
Venezuela has a large, resource-rich economy with significant oil, gas, and mineral reserves. Despite economic challenges, the country offers access to a skilled workforce, especially in engineering, oil & gas, and technical sectors. Foreign companies seeking to engage talent in Venezuela without opening a legal entity can benefit from Employer of Record (EOR) services.
Why Use Global EOR Services in Venezuela ?
An EOR legally employs workers on behalf of foreign businesses. The EOR handles:
Drafting and signing compliant employment contracts
Payroll processing and payment in local currency (Venezuelan bolívar – VES)
Tax withholdings and filings (Income tax, social security, other statutory contributions)
Social security registrations (IVSS, National Housing, Employment Training, etc.)
Administration of statutory benefits
Management of compliant termination processes
Support for work permits/visas (for expats)
Venezuela: Country Overview
Venezuela, officially known as the Bolivarian Republic of Venezuela, is located on the northern coast of South America. The country is rich in natural resources, notably holding some of the largest proven oil reserves in the world. Historically, its economy has been heavily dependent on the oil sector, which contributes the majority of export earnings and government revenue. Despite facing significant economic and political challenges over the past decade, Venezuela remains strategically important in the region due to its resource wealth, large domestic market, and young, urbanized population.
Venezuela is a founding member of OPEC and plays a key role in global energy markets. The government has implemented various reforms aimed at stabilizing the economy, promoting local production, and managing hyperinflation. Informal dollarization and growing private sector activity have also shaped the evolving business environment.
Capital: Caracas
Currency: Venezuelan Bolívar (VES); however, US dollars are widely used informally in business and daily transactions.
Population: ~28 million
Official language: Spanish
Major industries: Oil and gas, petrochemicals, mining (gold, bauxite), agriculture (coffee, cocoa, corn, rice), manufacturing, and telecommunications
Main exports: Crude oil, refined petroleum products, gold, aluminum
Main trading partners: China, India, Turkey, USA (limited), European Union, Cuba
GDP sectors: Oil & gas (~90% of exports), agriculture, manufacturing, and services
Employment Policies and Labor Standards in Venezuela
Employment Contracts
All contracts must be in writing, in Spanish.
Can be indefinite, fixed-term, or for specific tasks.
Probationary period: 1 month max (only in fixed-term contracts of more than 1 year).
Working Hours
Standard: 40 hours/week, max 8 hours/day, typically 5-day week.
Overtime: Paid at increased rates (50% surcharge for weekdays, 100% on holidays/rest days).
Night work: Paid at a 30% premium.
Leave Entitlements
Annual leave: 15 working days after 1 year of service + 1 additional day for each subsequent year (up to 15 additional days).
Public holidays: ~19 national holidays (all paid).
Sick leave: Paid up to 1 year (3 days at employer cost, then covered by Social Security).
Maternity leave: 6 weeks before + 20 weeks after birth (100% pay; protected from dismissal for 2 years after birth).
Paternity leave: 14 calendar days (paid).
Payroll, Tax, and Social Contributions
Personal income tax (ISLR): Progressive rates up to 34%.
Employer contributions:
IVSS (Social security): ~10-11% of salary
National Housing (FAOV): 2% employer + 1% employee
Employment Training Institute (INCES): 2%
LPH (unemployment insurance fund): ~2%
Employee contributions:
IVSS: 4%
National Housing: 1%
Salaries must be paid in bolívares. Currency stabilization measures and inflation rules apply; some employers offer additional hard-currency bonuses or indexation allowances (must be structured carefully to remain compliant).
Health and Safety
Employers must:
Register with the National Institute for Prevention, Health, and Safety at Work (INPSASEL).
Provide safe work conditions, equipment, and training.
Maintain health and safety committees in workplaces with ≥50 employees.
Termination & Severance
Dismissal requires valid cause defined by law (LOTTT specifies just causes, e.g., misconduct, lack of capacity).
Notice: Not mandatory if dismissal is justified (but employer must notify Labor Inspectorate).
Severance:
Mandatory severance accrual: 5 days’ pay per month + 2 additional days per year of service (max 30 additional days per year).
Redundancy: Additional compensation as per collective agreement or law.
Note: Job stability protection (inamovilidad laboral) often applies under government decrees, requiring government approval for dismissal of most employees.
Non-Discrimination and Equal Opportunity
Discrimination based on race, sex, religion, political opinion, disability, or social origin is prohibited.
Equal pay for equal work is mandatory.
Trade Unions
Strong union presence in many sectors (especially oil, construction, public services).
Employers must respect union rights, collective bargaining, and the right to strike.
Popular Global EOR Providers Supporting Venezuela
(They often partner with in-country firms for local compliance.)
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