Fact or Fiction?: "The Supreme Court Rules That Bonuses Paid in Foreign Currency Do Not Constitute Part of the Labor Salary"

For several months, news stories and viral videos have been circulating claiming that the Venezuelan Supreme Court ruled that bonuses paid in foreign currency do not qualify as salary.

This is, without a doubt, very attractive news. It addresses the need for employers to improve the monthly liquidity of workers without increasing labor costs.

But is it as good as it sounds? In our view, it is a half-truth.

Context

Decision N° 523 (11.13.25) of the Social Cassation Chamber of the Supreme Court analyzed the salary nature of a complementary food bonus paid in USD into a custody account. The Supreme Court ratified that the benefit is not salary, based on Article 105 of the Organic Law of Labor and Workers ("LOTTT").

What do we need to clarify?

It is NOT true: That bonuses in foreign currency, by default, lack a salary nature. For them to be excluded from the concept of salary, the payment must be justified under one of the specific cases listed in Article 105 of the LOTTT.

It IS true: That this is a relevant precedent. The Supreme Court validated a non-salary food benefit paid in cash/foreign currency, contrary to what is established in the Socialist Cestaticket Law, which only allows such payments in exceptional cases. The Supreme Court relaxed the criteria that typically grants salary nature to any payment received by the worker that is freely available, paid in connection with the provision of services, and lacks proportionality with the base salary.

What can we do with this decision?

Simply calling a payment a "non-salary bonus" is not enough — it must be justified. It is vital to ensure that non-salary bonuses have a logical, proportional, and plausible justification. Both the employer and the worker must define why it is being paid and be able to prove it.

In labor matters, the difference between a well-structured benefit and a poorly documented one can cost more than what was intended to be saved.

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Ágora Abogados S.C. advises employers and employees on the structuring of solid non-salary benefits, the review of compensation policies, and the defense of their interests before the Labor Inspectorate and labor courts. Our team includes lawyers specialized in Venezuelan labor law, with experience in benefits structuring, salary policy review, and representation in labor proceedings.