Venezuela employment costs

Compandben International reports that Venezuela costs are lower than elsewhere in South America.

The company writes:

There has recently been some renewed interest in Venezuela from potential clients. Perhaps anticipating a change in government. Compandben’s partner company in Venezuela employs two staff there on behalf of a USA based marketing company.

If you look up the EMPLOYER Social Charges for Venezuela you will be told they are 11-13% of salary. But this seriously underestimates the charges applying in Venezuela.

They are...

The usual social charges ...Social security 8.31% RPE (unermployment pay) 1.85% FAOV(Housing Fund) 2.00%

BUT ALSO Vacation Bonus (1/2 month's salary; this is paid to the employee so I would not normally call it a "social charge" but that is the way they see it in Venezuela. It comes to 4.17%

Public Holidays 1.67%

"UTILITIES" a mandatory profit share 8.33%

Mandatory End of Service payment 4.77%

TOTAL Employer Charges …..31.09% (8.31%+1.85%+2%+4.17%+1.67%+8.33%+4.77%).

This sounds a lot but Employer social charges in Brazil are 68%of gross salary and in France they are 48-50%.

John Tinsley

Director Compandben Companies

Cambridge UK and Geneva Switzerland

+44 79 58 173 708 +41 79 285 9713

John.tinsley@compandben.com

www.compandben.com

Skype: john.tinsley01



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