Salary Increase and National Minimum Wage 2025 for the Private Sector in Bolivia

In compliance with Bolivian labor regulations, Supreme Decree No. 5383 of May 1, 2025, and Ministerial Resolution No. 512/25 of May 15, 2025, establish the provisions for the salary increase and the National Minimum Wage (SMN) for the 2025 fiscal year in the private sector.

  1. Salary Increase in the Private Sector
  • Negotiation Basis: A minimum increase of 5% with basis on the basic salary is established, applicable to all types of salaried contracts. Companies may agree to higher percentages depending on their financial capacity (Art. 6 DS No. 5383, Art. 1 RM No. 512/25).
  • Exceptions: The increase does not apply to senior management positions (presidents, vice presidents, managers, directors) with salaries commensurate with their level (Art. 2, Paragraph III, RM No. 512/25).
  • Mandatory Formalization: The increase must be formalized through a Collective Salary Increase Agreement signed between the employer and the union, union committee, or, in their absence, the majority of employees, in accordance with Art. 103 of the General Labor Law and RM No. 123/06. The agreement must include the parties’ consent, general terms of the law, the company name, and the agreed percentage (Art. 2 and 4, RM No. 512/25).
  • Retroactivity: The increase is effective as of January 1, 2025, with mandatory retroactive payment until July 31, 2025 (Art. 3, RM No. 512/25).
  1. National Minimum Wage
  • New Amount: Set at Bs2.750, a 10% increase compared to 2024 (Bs2.500), mandatory for all salaried contracts in the private sector (Art. 7 DS No. 5383).
  • Application Criteria:
    • If the 5% increase does not reach Bs2.750, the base salary must be adjusted to this amount, even if it implies a percentage higher than 5%.
    • If the base salary exceeds Bs2.750, the 5% or the agreed percentage is applied (Art. Second, Paragraphs VI and VIII RM No. 512/25).
  • Supervision: The Ministry of Labor, Employment, and Social Security will ensure compliance, with control actions and sanctions for noncompliance (Art. 7 DS No. 5383, Article 6 RM No. 512/25).
  1. Administrative Obligations
  • Submission of Documents: Employers must submit the following documents through the Virtual Processing Office (OVT) (www.ovt.mintrabajo.gob.bo) by August 31, 2025 (or July 31, 2025, for the private mining sector):
    • Salary Increase Affidavit Form.
    • Bank deposit of Bs. 124 (payrolls up to Bs. 100,000) or Bs. 153 (payrolls higher than that) in the Ministry of Labor’s fiscal account at Banco Unión (No. 1-6036425).
    • Retroactive payroll to January 1, 2025, in OVT format.
    • Collective Bargaining Agreement in PDF format, with employee signatures (Article 5, RM No. 512/25).
  • Sanctions: Failure to submit or pay the increase and SMN will be sanctioned in accordance with RM No. 212/18 of March 1, 2018 (Art. 6, RM No. 512/25).
  • Additional Obligations: This does not exempt the employer from filing monthly payroll, wages, and work-related accident reports, in accordance with RM No. 212/18 (Art. 5, Paragraph III, RM No. 512/25).