Pensions

Caracas, April 9, 2026 (venezuelanalysis.com) – Venezuelan Acting President Delcy Rodríguez announced a series of upcoming reforms concerning Venezuela’s labor, tax, and pension frameworks during a press conference on Wednesday, April 8. 

Addressing her cabinet at Miraflores Presidential Palace, Rodríguez unveiled the creation of a commission made up of representatives from the state, business sector, active workers, and pensioners to “review labor conditions, address precariousness, and strengthen the social security system.”

Rodríguez acknowledged deficiencies in areas such as working hours, vacation benefits, and pensions, arguing that the present social security system is not sustainable due to insufficient contributions from active workers and the private sector.

The acting president disclosed an upcoming increase to workers’ incomes on May 1, but did not specify if it would come in the form of an adjusted minimum wage or non-wage bonuses. Rodríguez warned that salary adjustments must be “responsible” so that they do not trigger inflation.

Venezuelan authorities have discussed the prospect of reforming the 2012 Labor Law for several months, installing several dialogue commissions and public debates.

The existing labor law, approved by former President Hugo Chávez, prohibits unfair dismissal and outsourcing, enshrines the world’s third-longest maternity leave, guarantees the right to work for both women and people with disabilities, and extends retirement pensions to all workers, including full-time mothers and the self-employed. However, trade unions have pointed out that state institutions and the Labor Ministry have reduced their enforcement of the law in recent years.

Rodríguez’s public broadcast came hours before workers and unions staged a mobilization in Caracas demanding higher wages, improved working conditions, and the repeal of statutes that suspended several collective bargaining rights. In recent protests, workers have called for an end to the government’s bonus-based wage policy and the restoration of collective bargaining agreements.

Venezuela’s minimum wage has remained unchanged since March 2022 at 130 bolívares per month—equivalent at the time to around US $30 but presently worth approximately $0.27 at the official exchange rate.

With the economy heavily constrained by US sanctions, the Venezuelan government relied on non-wage bonuses—paid in bolívares but pegged at a fixed US dollar amount. A recent increase took the so-called Economic War Bonus, paid to public sector employees, to $150 a month. Coupled to a $40 food bonus, it brought the floor income to $190.

Public sector retirees and pensioners receive $130 and $60 Economic War bonuses, and do not access the food bonus.

For their part, business sector representatives have demanded changes to the labor law that reduce costs for employers before any adjustment to the minimum wage. Amid ongoing discussions with the International Labour Organization (ILO), private sector organizations proposed modifying Article 122 of the Labor Law, which establishes that severance payments are calculated based on the last salary earned by the worker.

Tax reform and state asset review

Rodríguez also announced the immediate convening of a National Economic Council tasked with designing a more “efficient” tax model aimed at making Venezuela “more competitive.”

“I hope that this council can produce a new tax model that can generate consensus among the different economic sectors in the country,” the Venezuelan leader stressed. 

She further enacted the Law on Streamlining and Optimization of Administrative Procedures, previously approved by the National Assembly, which seeks to modernize public administration by reducing bureaucracy and incorporating digital tools. According to Rodríguez, the law grants the executive authority to eliminate procedures, shorten timelines, and improve coordination between institutions.

In addition, she ordered the creation of a mixed commission to evaluate which state-owned assets have “strategic” importance, potentially opening some to private investment. However, she clarified that the hydrocarbons sector will remain under state control. The Cisneros group, one of Venezuela’s largest conglomerates, recently announced plans to raise funds ahead of an “expected wave of privatizations.”

The Venezuelan acting administration’s wholesale reform plans follow a recent pro-business overhaul of the Hydrocarbon Law in late January. The South American country’s National Assembly is likewise close to approving a new Mining Law with the goal of attracting foreign investment for extractive activities.

On Wednesday, Rodríguez additionally called for reforms to the country’s housing laws, claiming that there are half a million “frozen” properties presently that could be incorporated into the real estate market.

The acting president’s final announcement was a nationwide “pilgrimage” scheduled from April 19, Venezuela’s Independence Day, to May 1 to demand the lifting of US unilateral coercive measures against the Caribbean nation. While the Trump administration has issued selective and restrictive licenses to favor the participation of Western companies in the Venezuelan oil and mining sectors, wide-reaching sanctions remain in place.

Edited by Ricardo Vaz in Caracas.

BBC expert Rebecca Wilcox has warned people may want to opt out of Winter Fuel Payment from April 1 to avoid paying double monthly deductions back to HMRC due to a change this year

A BBC expert has warned that millions of individuals may need to take action on or after 1 April, or risk paying ‘double’ back to HMRC. Consumer specialist Rebecca Wilcox told BBC Morning Live viewers that anyone with a taxable income exceeding £35,000 might want to opt out of the 2026 winter fuel payment to avoid repaying ‘£33 each month’ due to the change.

She cautioned that from April, millions of households will be contacted by HMRC and informed they may need to repay their Winter Fuel Payment. She further clarified that some might want to act to prevent receiving the money and thus bypass the repayment process.

Ms Wilcox highlighted that a significant change later this year would result in people repaying double the full amount. On the topic of early cancellation, she explained: “If you know your personal income is going to be over the threshold of £35,000 then opt out of it for the next year and then you don’t have to worry about the next payment. You cannot do this until 1 April. The reason you’ll want to opt out is because the payments are going to double just for one year.

“This is because the taxman is in debt, he’s in arrears, because he’s paid out all this money and it wants to claw this money back. For one year it is going to charge everybody double on their repayments so it can get back into the normal process of taking the money from you and then returning it. It wants to have its money so for one year it is going to charge you, say you were doing, for example we were talking about, of £17 per month tax deductions, it’s going to charge you double, £34 per month for that one year and then it will go back to £17.

“So that’s why you might want to opt out if you know you’re going to be earning £35,000 and above. If your income then drops just be aware you will have to opt back in to receive the winter fuel payment.”

Ms Wilcox told BBC Morning Live viewers: “The Winter Fuel Payment was a lump sum that was paid out to help you with your fuel bills during the cold months of November and December. That’s when the payments were made. What happened was they paid everybody who was over the age threshold. You were eligible to keep it if you were born before 22 September 1959 – that’s for England, Wales and Northern Ireland. Or the 21 September 1959 in Scotland.

“If you’re born before that and you earn £35,000 exactly and under you can keep it. If you earn even a penny over the £35,000 of your personal, taxable income, then you will need to pay back this payment. The payment was between £100 and £300 and that number was calculated on your circumstances, your household circumstances and how old you are.

“For some this is going to be the first they’ve heard about repayment. And there’s a reason that this is happening and it’s because HMRC can do many things but it cannot predict the future. It has no idea how much you’re going to earn in that future tax year. So it’s just given it to everybody and then when it knows how much you’ve earned whic” h is April, it will reclaim the funds that were paid to you in November.

“If you earn over £35,000 and are within the age bracket you will be required to pay this back in full.” She noted that HMRC has an online checker available for those uncertain whether they exceed that threshold.

Winter Fuel Payments, referred to in Scotland as Pension Age Winter Heating Payments, are annual financial grants designed to assist with winter energy costs. For the current payment, eligibility extends to individuals born before 22 September 1959 in England, Wales or Northern Ireland, and before 21 September 1959 in Scotland.

The payment amount varies from £100 to £300 depending on age and household situation. HMRC cannot determine final income until the tax year concludes. Since payments must be distributed before winter, the system operates by paying everyone of qualifying age initially, then contacting those who exceed the income threshold afterwards.

In most instances, the money will be recovered automatically through the tax system. HMRC will modify the individual’s tax code in the 2026 to 2027 tax year. The repayment shows as an underpayment, resulting in slightly higher tax deductions each month.

No interest is charged on the sum being repaid. For instance, someone who received £200 might see their monthly income reduced by approximately £17 while the repayment is collected.

Individuals who complete a Self Assessment tax return will instead have the repayment added to their tax bill for the 2025 to 2026 tax year. Anyone who believes the calculation is wrong can dispute the decision with HMRC.

From 1 April 2026, households can decline the 2026 to 2027 payment by contacting the Winter Fuel Payment Centre or filling in a form online. You will need your National Insurance number to do this.

Once you opt out, you will not receive future payments unless you choose to opt back in. The primary reason to opt out if you expect your income to remain above the threshold is because from the 2027 to 2028 tax year, HMRC plans to recover payments in advance rather than in arrears, meaning deductions could be roughly double.

For a typical £200 payment, this could mean around £33 a month being taken through the tax system instead of about £17. The deductions are expected to return to the lower monthly amount in the following tax year.