Bolivia's President Cuts Salary and Cabinet Pay to Quell Protests

Bogota, Colombia (ANTARA) - Bolivia’s President Rodrigo Paz announced on Monday (25 May) a 50% pay cut for himself and all cabinet members amid intense pressure from a national blockade demanding his resignation. The move is a direct effort to ease pressure from trade unions and indigenous organisations that have paralysed the administrative capital, La Paz. The announcement came as the Andean nation entered its fourth week of protests that have crippled various activities after government and protest leader talks completely failed. ‘The president and ministers have made the decision – as part of our deep commitment and sacrifice for the nation – to reduce our salaries by 50 per cent,’ Paz said in a public address. Prior to the decision, Paz earned a monthly salary of 24,978 bolivianos (approximately US$3,617 or Rp64.7 million). The amount was the maximum public official salary in Bolivia. After the cut, it drops to 12,489 bolivianos (around US$1,808 or Rp32.3 million). Paz took office in late 2025 with an agenda to dismantle two decades of left-wing economic policies implemented by his predecessors, Evo Morales and Luis Arce. In an effort to stabilise the nation’s finances, Paz has shifted his government’s approach towards the United States, international financial institutions, and the private sector, while gradually distancing from influential trade unions. Since early May, indigenous groups, miners, teachers, and factory workers have continued road blockades. The disruptions have severed national supply chains, causing shortages of food, fuel, and medical supplies in major cities, as well as paralysing markets and hospitals. While protesters demand the reversal of austerity measures to curb rising living costs, Paz has maintained budget cuts and fuel subsidy reductions as necessary steps to stabilise the economy. The pay cut was announced just 24 hours after highly anticipated government-indigenous leader talks ended without agreement. Paz’s government has repeatedly claimed that former president Evo Morales is behind the social unrest. Authorities accuse Morales of using trade unions to regain power. Morales was legally barred from running in the 2025 election won by Paz. On Sunday, after failed peace talks, Morales wrote on social media that President Paz had ‘only two choices’: militarise the country or hold elections. ‘Rodrigo Paz is setting his own downfall on these streets,’ Morales wrote on social media platform X. The former president is currently a fugitive after a warrant was issued on 11 May. Morales has been charged with contempt of court for failing to attend a trial concerning rape and human trafficking allegations linked to claims he fathered a child with a 15-year-old girl while in office, in exchange for political and economic benefits for the victim’s family.