Minimum Wage
The main provisions on the setting of minimum wages are contained in the General Labour Act, the Decree enacting the regulation of the General Labour Act and the Supreme Decrees.
The Ministry of Labour is responsible for fixing and periodic review of minimum wage. In doing so, it must take into account a number of factors, which include the geographic conditions, the economic situation of the country and categories of workers. The change in the minimum wage is notified to the public by the passage of a Supreme Decree.
The national minimum wage applies to all workers in both the public and the private sector. There is one general minimum wage rate, which is applicable to all salaried employees and wage-earning employees except agricultural workers.
The Labour Inspection is responsible for monitoring compliance of the minimum wage legislation, and can initiate the necessary proceedings before the Labour and Social Security Court against the employers for violating the provisions of the Supreme Decree. Where there has been non-compliance with the minimum wage legislation by the employer, the law may impose a fine ranging from one thousand to ten thousand Bolivianos, depending on the seriousness of the offence. In addition, the Labour Judge or the immediately superior political authority can, also depending on the facts of a particular case, order the payment of the salary the worker was entitled to earn. In case of repeated non-compliance, fines can be doubled or closure of the commercial establishment may be imposed.
Source: §1, 47, 52, 121 of General Labour Act, 1939; §46 and 165 of the Decree enacting the Regulation of the General Labour Act, 1943; §2 and 3 of the Supreme Decree No. 107, 2009
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
The term “wages” has been defined in the General Labour Law of Bolivia as any agreed payment in exchange of the services rendered by a worker in any of its modes or types of work.
Wages may be paid on hourly, daily, weekly, fortnightly or monthly basis. Wage payment period is however 15 days for (blue-collar) workers and 30 days for employees and domestic workers. Law also allows in-kind payment of wages. Wages must be paid in legal tender, on a workday and in the place of work. Paying wages in places of recreation, sale of merchandise or liquor is prohibited except for those workers who are employed in such establishments.
When paying wages to employees, the employer may only deduct amounts corresponding to income tax, contributions for the social insurance, and other contributions determined under the law. Deducting amounts for the use of amenities at work such as rental for rooms, use of light, water, medical care, medicines, tools or the imposition of fines (unless authorized by the Ministry of Labour) is strictly prohibited. On the orders of a Labour Court, a woman may receive 50% of the remuneration earned by her husband.
1. Christmas Bonus (13th salary)
- Rule: Art. 57 of the General Labor Law (LGT) and Supreme Decree 229 (1943).
- Content: All salaried workers, whether public or private, are entitled to a Christmas bonus equivalent to one (1) month's salary, paid by December 20 of each year.
- Nature: Mandatory, non-compensable, and non-attachable.
2. Second Bonus "Effort for Bolivia" (14th salary)
- Rule: Supreme Decree 1802 (11/20/2013).
- Content: This is an additional payment equivalent to one month's salary.
It is granted only when annual GDP growth is greater than 4.5%.
The Government officially announces each year whether its payment is due.
- Payment deadline: Generally until December 31, although it can be extended by decree.
- Beneficiaries: All salaried workers (public and private).
3. Production Bonus or Sectoral Gratuities
The General Labor Law (LGT) (Article 55) recognizes the possibility of production bonuses or gratuities established in collective agreements, internal regulations, or sectoral provisions.
They are not universal; they depend on the sector or company.
4. Other complementary benefits
In addition to bonuses, Bolivian labor legislation provides for:
- Annual bonus: (Article 57 LGT) — equivalent to 25% of the company's net profits, distributed proportionally among employees, provided the company reports profits.
- Severance compensation: (Articles 12 and 13 Supreme Decree 1592/1988) — 1 month's salary for each year worked, payable upon termination of the employment relationship.
Source: § 53 of General Labour Act, 1939; §42 and 43 Decree enacting the Regulation of the General Labour Act, 1943
