Bolivia's Paz Cuts His Salary 50% Amid Protests

2026-05-25 03:14:27

(MENAFN- The Rio Times) Bolivia · Politics

Key Facts

- The measure: Paz announced on May 25 that he and his ministers will halve their salaries as a gesture of national sacrifice.

- The figures: His pay falls from 24,978 bolivianos ($3,617) to about 12,489 bolivianos ($1,808) a month.

- Fourth week: Union-led blockades demanding his resignation have gripped La Paz and El Alto since early May.

- Economic backdrop: Annual inflation hit 20.4 percent in 2025, and the labor federation is demanding a 20 percent wage rise.

- Latin American impact: The crisis tests a center-right government barely six months old and backed by Washington.

Bolivian President Rodrigo Paz announced a 50 percent salary cut for himself and his cabinet on May 25, the Paz salary cut arriving as union-led road blockades demanding his resignation entered a fourth week.

What does the Paz salary cut involve?

Speaking in Sucre during commemorations of the 217th anniversary of the city's independence uprising, Paz said he and his ministers had decided to reduce their pay by half as a shared effort with the country. He framed it as a commitment rather than a concession, and stressed he would not extend the reduction to other public professionals he wants to retain.

Until the announcement, the president earned 24,978 bolivianos ($3,617) a month, and under Bolivian rules no other official may earn more than the head of state. The cut lowers the presidential salary to roughly 12,489 bolivianos ($1,808), according to figures reported by Infobae and the EFE news agency.

Why are Bolivians protesting?

The unrest began in early May with sectoral grievances over wages, poor-quality fuel and a contested land-reform law, then hardened into open demands for Paz to step down. The Bolivian Workers Central, the country's main labor federation, has pressed a list of more than 200 demands that includes a 20 percent wage increase, inflation control and a pledge not to privatize loss-making state firms.

Paz annulled the disputed land law on May 13, which calmed the Amazonian groups but not the broader movement. Protesters have blocked most access routes into La Paz, choking the delivery of food and medical supplies, while marches by supporters of former president Evo Morales added to the pressure on the seat of government.

What is the economic backdrop?

The protests sit on top of a severe cost-of-living squeeze, with annual inflation reaching 20.4 percent in 2025 and accumulated inflation through April running near 14 percent. Paz, who took office about six months ago and has drawn support from the United States, has repeatedly called for dialogue, asking why Bolivians cannot sit down to resolve their problems, even as the standoff drags on with no clear resolution.

Frequently Asked Questions How much will Paz now earn?

His monthly salary falls from 24,978 bolivianos ($3,617) to about 12,489 bolivianos ($1,808). The same 50 percent reduction applies to his cabinet ministers.

Does the cut apply to all public workers?

No. Paz said the reduction covers only him and his ministers. He explicitly excluded other public professionals, saying he did not want to lose skilled staff.

What do the protesters want?

Initial demands centered on wages, fuel quality and a land-reform law. As the conflict escalated, the main labor federation and allied groups narrowed their core demand to a single point, the resignation of President Paz.

How long have the blockades lasted?

The protests began in early May and had entered their fourth week by the time of the salary announcement. Blockades have concentrated in La Paz and El Alto and spread to other regions.

How bad is inflation in Bolivia?

Annual inflation reached 20.4 percent in 2025. Accumulated inflation through April 2026 stood near 14 percent, sharpening the wage demands behind the protests.

Connected Coverage

The salary move follows weeks of unrest detailed in our coverage of the La Paz blockades, and fits a wider pattern of political and market stress across the region traced in our reporting on the Colombian election.