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Employer of Record (EOR) in Venezuela | 2025 Update

January 17, 2025

Expanding into Venezuela is an exciting opportunity, offering access to a resourceful workforce and a strategically located market. However, navigating Venezuela’s intricate labor laws, payroll systems, and compliance requirements can be challenging. This is where an Employer of Record (EOR) can simplify the process, enabling your company to hire talent in Venezuela without establishing a legal entity.

In this guide, discover how EOR services can help your business grow in Venezuela while ensuring full compliance.

What Is an Employer of Record in Venezuela?

An Employer of Record (EOR) is a local entity that manages the legal and administrative responsibilities of employing staff in Venezuela. The EOR becomes the legal employer for your workforce, taking care of payroll, taxes, benefits, and compliance, while you retain control over the employees’ day-to-day tasks.

With an EOR, you can focus on scaling your business rather than dealing with the complexities of establishing a local entity.

➡️ Learn more: What Is an Employer of Record (EOR)?.

Employment In Venezuela

Venezuela’s labor law, known as the Organic Law of Labor and Workers, governs all employment-related matters. This includes hiring, compensation, and termination. The law prioritizes worker protections, such as minimum wage adjustments, severance pay, and benefits.

Employers must strictly adhere to these regulations to avoid legal complications and ensure smooth operations.

Employment Agreements in Venezuela

Written employment agreements are mandatory in Venezuela. These agreements outline the terms and conditions of employment and must include:

Personal details of both parties.
Job duties and responsibilities.
Employment duration and probationary terms (if applicable).
Work location and schedule.
Salary and benefits.
Termination clauses.

These agreements establish clear expectations and ensure compliance with Venezuelan labor laws.

Probationary Periods in Venezuela

Probationary periods are permissible in Venezuela and typically last up to three months. During this time, employers can evaluate the employee’s performance and fit for the role.

Average working hours

The standard workweek in Venezuela consists of 40 hours, typically distributed over five days. Any deviation from this must comply with labor law provisions.

Overtime

Overtime is heavily regulated to protect employees. Employers must pay workers at least 150% of their regular hourly wage for overtime hours. Excessive overtime is discouraged, ensuring a balance between work and personal life.

Leave in Venezuela

Annual Leave Accrual Entitlement

Employees in Venezuela are entitled to paid annual leave after completing one year of service. The statutory leave includes:

15 consecutive days of paid leave for the first year.
An additional day for every subsequent year, up to a maximum of 30 days.

Employees also receive a vacation bonus equal to 15 days of their salary, promoting financial support during their time off.

Public Holidays

Venezuela recognizes several national public holidays. Employees are entitled to paid leave on these days, which include:

New Year’s Day (January 1)
Independence Day (July 5)
Christmas Day (December 25)

Employers must ensure that these holidays are observed without affecting employees’ statutory leave entitlements.

Maternity, Paternity and adoption Leave

Venezuelan labor law provides robust parental leave benefits:

Maternity Leave: Expectant mothers are entitled to 26 weeks of paid leave (six weeks before and 20 weeks after childbirth).
Paternity Leave: Fathers are granted up to 14 days of paid leave, which includes adoption cases.

These provisions support working parents and ensure compliance with family-focused labor regulations.

Sick Leave

Employees experiencing illness or injury can take up to one year of sick leave, subject to certification by a medical professional. During this period, they are entitled to partial wage compensation through social security.

Payroll in Venezuela

Payroll cycles in Venezuela

Employers in Venezuela commonly operate on biweekly payroll cycles. This frequency aligns with local labor practices and employee preferences.

Wages in Venezuela

The minimum wage in Venezuela is currently set at USD 5 per month, calculated at the official exchange rate. This rate is subject to frequent changes due to economic fluctuations. Employers must ensure that they comply with these adjustments to avoid penalties and maintain fair compensation.

Payroll contributions for employers

Employers in Venezuela must contribute to several statutory funds and programs, including:

Social Security (SSO): 9% of the employee’s salary for retirement, healthcare, and disability benefits.
Regime for Employment Protection (RPE): 2% of the employee’s salary for job security programs.
Housing Fund (FAOV): 2% of the employee’s salary to support affordable housing.
National Institute for Educational Cooperation (INCE): 2% of the employee’s salary for vocational training and education.
Severance Fund (Art. 92): 15 days of salary per quarter, deposited to guarantee employees’ severance payments.

Payroll contributions for employees

Employees also contribute a portion of their salary to statutory programs:

Social Security (SSO): 4% of their salary.
Housing Fund (FAOV): 1% of their salary.

These contributions ensure that employees receive retirement, healthcare, and housing benefits.

Benefits in Venezuela

Mandatory Benefits in Venezuela

Employees in Venezuela are entitled to the following mandatory benefits:

13th Month Salary: Known as the Christmas bonus, equivalent to one month’s salary, paid at the end of the year.
14th Month Salary: Some employers offer this additional bonus as part of collective agreements or to remain competitive.
Vacation Bonus: Equivalent to 15 days of salary, paid when employees take their annual leave.

These benefits ensure financial stability and improve employee satisfaction.

Supplemental benefits in Venezuela

To remain competitive, many employers offer additional benefits, such as:

Private Health Insurance: Enhances access to quality medical care.
Transportation Allowances: Supports commuting costs.
Meal Vouchers: Provides financial relief for essential groceries.

Partnering with an EOR in Venezuela allows businesses to design compliant and attractive benefits packages.

Terminations in Venezuela

Notice Periods in Venezuela

Notice periods are not mandatory in Venezuela. However, clear termination clauses in employment agreements can help avoid disputes.

Severance pay in Venezuela

Employees dismissed without cause are entitled to severance pay, which includes:

One month’s salary for every year of service.
Accrued benefits, such as unused leave and unpaid wages.

An EOR ensures fair treatment of employees and compliance with termination procedures.

Types of Visas in Venezuela: Understanding Your Options

Foreign nationals working in Venezuela require appropriate visas, such as:

Work Visa: Issued for employment purposes, typically valid for one year.
Temporary Resident Visa: For individuals staying longer than six months.

An EOR simplifies the visa process by managing documentation and ensuring compliance with immigration laws.

Frequently Asked Questions (FAQ)

What are my options if I want to hire a worker in Venezuela?

Employers can either set up a legal entity, hire independent contractors, or partner with an EOR. An EOR is the most efficient solution for hiring without establishing a physical presence in Venezuela.

What are the advantages of using an Employer of Record (EOR) in Venezuela?

An EOR in Venezuela simplifies the hiring process by managing payroll, benefits, and compliance. It eliminates the need for establishing a local entity, reducing costs and legal risks. With an EOR, businesses can focus on growth while ensuring full compliance with Venezuelan labor laws.

How does an Employer of Record (EOR) ensure HR compliance in Venezuela?

An EOR manages all aspects of employment, including contracts, payroll, and taxes, ensuring compliance with Venezuela’s labor laws and regulations.

Who is responsible for paying taxes and contributions in Venezuela through an EOR?

The EOR is responsible for calculating and remitting all taxes and contributions on behalf of the employer, ensuring full compliance.

What taxes do I need to pay as an employer in Venezuela?

Employers must pay payroll taxes, social security contributions, and other applicable levies, including FAOV, RPE, and INCE contributions.

Can I hire in Venezuela without using an EOR?

Yes, but you will need to establish a legal entity and comply with all local labor laws and administrative requirements, which can be time-consuming and complex.

Can I employ people as independent contractors in Venezuela?

Yes, but hiring independent contractors comes with risks, such as misclassification. Partnering with an EOR ensures compliance and reduces legal exposure.