Venezuela is considered to be one of the most developed and fastest growing economies in Latin America. The economy is largely reliant on the petroleum sector of the country, with exports accounting for 18% of the country’s total GDP. The manufacturing industry contributes an estimated 17% to the total GDP of the country, making it one of the largest industries in Venezuela.
The following is a brief outline of the social security system in the Venezuela:
Old Age Fund
The law that governs the provident fund in Venezuela was reformed in 2010, covering all public and private sector employees, as well as seasonal, domestic and casual workers. All employees of the public sector are required to contribute 2% of their monthly salary towards their provident fund.
In order to avail benefits and the old age pension, individuals must be a certain age. Men of 60 years old and women of 55 years old, who have worked for a minimum of 750 weeks, are entitled to their pension. This can be paid abroad in the event that the individual chooses to relocate after retirement.
The social insurance system covers private and public sector employees. The contributions are similar to the old age fund, with the eligibility dependent on whether the individual is insured or not.
An estimated 66.7% of the female employee’s salary is paid to her for a period of 6 weeks prior to the birth of her child. Furthermore, this payment continues for a period of 12 weeks after the birth of the baby.
In line with the social insurance system, all public sector individuals who wish to qualify for the sickness allowance must be contributing 2% of their monthly salary to the social security system.
In the event that an individual is sick, they are entitled to 66.7% of their average daily wages after 3 days. This is considered to be the waiting period. The sickness allowance is paid for 52 weeks, with the benefit being reduced by 50% in the event of hospitalization.