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Published On: Tue, Jan 10th, 2017

Promises Of 50% Minimum Wage Hike Amidst Venezuela’s Runaway Inflation

nsnbc : Venezuelan President Nicolas Maduro proudly announced a50 percent increase in the country’s national minimum wage in 2017. However, those struggling to survive on minimum wage will hardly see any benefits from the bigger pay check.

venezuela_nicolas-maduro_presidential-press_jan-2016Maduro announced that the increase in salaries would be implemented retroactively from January 1, 2017, increasing the national minimum wage from 27.091 to 40.638 bolivars, he said.

Maduro touted the minimum wage increase as a “defense of workers’ wage income”, while he tried to explain the country’s runaway inflation by referring to “an audacious economic war”.

In other words, there were no words of introspection that could suggest that his administration looks at those parts of its own policies that might have contributed to the situation.

Venezuela's runaway inflation. Click on image to enlarge.

Venezuela’s runaway inflation. Click on image to enlarge.

The increase brings the total NMW to 104.358 or approximately USD$156, using the official exchange rate. The increase will also apply to recipients of State pensions. Some90% of Venezuelans are now entitled to retirement benefits when they reach retirement age, said Maduro.

In November 2016 the socialist administration raised the minimum wage by 40 percent. However, those Venezuelans who depend on minimum wage will hardly see any “benefits”, of feel particularly “protected”. The country is plagued by a runaway inflation.

Venezuela’s Central bank reported 180.9 percent inflation at the closing of 2015. No official figures for 2016 have been published yet, but it is expected that the country saw over 200 percent inflation in 2016.

CH/L – nsnbc 10.01.2017

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