In Supreme Decree No. 5503, the Bolivian Government adopted exceptional measures aimed at restoring stability due to the current economic and fuel crisis.
In the labor sphere, the following measures are particularly relevant.
Increase of National Minimum Wage for the private sector
The National Minimum Wage has been set at BOB 3,300.00 (three thousand three hundred 00/100 Bolivianos), amending Supreme Decree No. 5383 of May 1, 2025, which had set the 2025 minimum wage at BOB 2,750.00.
This new minimum wage will apply as from January 2, 2026. The Ministry of Labor, Employment and Social Welfare (MTEPS) is responsible for issuing implementing regulations.
Free negotiation of salaries between employers and employees
Supreme Decree 5503 also authorizes free salary negotiations, provided that the following conditions are met:
- Employers must comply with the National Minimum Wage, and employee remuneration may not be below the amount set.
- Employees’ labor rights must be respected. Such rights are non-waivable under the Political Constitution of the State and govern, inter alia, working hours, overtime, social security and other social benefits, and job stability.
- Salary agreements must be formalized in written documents, whether individual or collective, signed by the employer and employees. The Ministry of Labor will regulate filing requirements and deadlines.
Oversight and supervision
The Ministry of Labor will also supervise and regulate the requirements and deadlines for filing documentation related to the minimum wage increase and salary agreements.
Conclusion
The increase in the National Minimum Wage will impact: (i) seniority bonuses for employees with more than two (2) years of continuous service at the same company; (ii) social security contributions; and (iii) the tax base for RC-IVA (Complementary Regime -VAT). Failure to comply with these provisions may result in sanctions and/or monetary fines.