What does it really cost to employ someone in Venezuela?
Most cost guides multiply a salary by a social security percentage and get Venezuela badly wrong. Two things decide the real number: how much of the package is paid as salary, and where the statutory caps fall. This calculator separates both, so your finance team gets a figure it can defend.
The short answer
Budget roughly 1.33 times the salary portion of the package, plus the non salary bonuses in full. That covers the 2 percent housing contribution, the 2 percent training levy and the statutory accruals for severance, profit share and the holiday bonus. Social security and the employment benefit regime are capped at a multiple of a legal minimum salary that has been frozen since 2022, so in United States dollar terms they add very little. Service fees and role specific costs sit on top and are quoted for your roles.
Your scenario
Estimated employment cost
Per person, per month
$1,898
Per person, per year
$22,776
Whole team, per year
$22,776
Times the package you agreed
1.27x
Statutory employer contributions
- Housing regime, FAOV2 percent of integral salary, employer share, no legal cap.$24
- Training levy, INCES2 percent of wages and salaries paid, employer share.$24
- Social security, IVSS9, 10 or 11 percent by risk class, but the contribution base is capped at five legal minimum salaries, so in United States dollar terms the amount is small. Confirmed in your proposal.capped
- Employment benefit regime, RPE2 percent, capped at ten legal minimum salaries, so the same cap effect applies.capped
- Workplace safety, LOPCYMAT0.75 to 10 percent depending on the risk classification of the activity. Applied to your actual activity in the proposal, not assumed here.capped
Statutory accruals under the LOTTT
- Severance accrual, prestaciones sociales15 days per quarter under the LOTTT, which accrues at roughly two months of salary per year.$200
- Profit share, utilidades30 days of salary is the statutory minimum. Many employers agree more.$100
- Holiday bonus, bono vacacional15 days of salary is the statutory minimum and it rises by one day per year of service.$50
This is a planning estimate built from published statutory rates. It is not a quote, and it is not tax or legal advice. Your actual cost depends on the role, the risk classification of the activity, the work location, the pay structure and the engagement model.
What this figure does not include
- SIVEN service fees, which depend on the service you engage and are quoted, never published as a rate.
- Benefits you choose to add above the statutory minimum, such as private medical cover or transport.
- Equipment, personal protective equipment, connectivity, travel, rotation and mobilization costs.
- Income tax withholding and bank charges, which pass through rather than adding employer cost.
Where these numbers come from
The contribution rates and caps are published rates. The accruals are the statutory minimums in the labour law. Nothing on this page is a market average we invented.
Get this modelled on your actual roles
Send the roles and the location and we will return a written breakdown for your scenario, with each component on its own line.
- Your roles priced with compensation, applicable employer costs, agreed benefits, fees and project specific expenses separated.
- The engagement model that fits, with responsibilities on each side stated in writing.
- A realistic start sequence for your location and timing.
Questions buyers ask
- What is the employer burden for hiring in Venezuela?
- On the salary portion, plan on about 33 percent above salary: 2 percent housing, 2 percent training levy and roughly 29 percent of statutory accruals for severance, profit share and the holiday bonus. Social security and the employment benefit regime apply on a capped base tied to the frozen legal minimum salary, so they add very little in United States dollar terms.
- Why do other calculators show a much higher percentage?
- They apply the 9 to 11 percent social security rate to the full package. Venezuelan law caps that contribution base at five legal minimum salaries, and the legal minimum salary has been frozen since March 2022, so the uncapped calculation is wrong for almost any professional package.
- Why separate salary from non salary bonuses?
- A large part of Venezuelan pay is delivered as bonuses that are excluded from the contribution and accrual base. The split changes the employer cost materially, and it has to be structured correctly, so we document the structure in the proposal rather than leaving it to chance.
- Do we need a Venezuelan entity to employ people this way?
- No. SIVEN employs and pays the people locally in Venezuela, and you contract with, and are invoiced by, the Gracemark group's United States company.
- Is this figure a quote?
- No. It is a planning estimate from published statutory rates. A quote comes back in writing once we see the roles, the location and the timing, with fees and role specific costs itemized.