Venezuelan leader unveils 30 pct rise in minimum wage at May Day rally

Venezuelan President Nicolas Maduro announced a 30-percent increase in the minimum wage on Friday to counter high inflation.

"I am obligated to defend the vital minimum wage of Venezuelans," said Maduro, adding his government has "battled to defend employment" and "create new sources of jobs."

Double-digit inflation is running at near 50 percent in Venezuela, eroding workers' purchasing power, but the generous increase is surprising given the low price of oil, the country's leading export and revenue earner.

The announcement takes Venezuela's current monthly minimum wage of 5,634.47 bolivars (894 U.S. dollars at the official exchange rate) to 7,324.81 bolivars (1,162 dollars), according to the Venezuelan News Agency (AVN).

Shortages of basic goods are another common problem, which the government says is artificially generated by the country's conservative business sector to sow discontent among the power base of the ruling socialist party.

"I call on workers to start a socialist offensive to guarantee our people basic goods and increase production. We need to step up and radicalize our revolution," said Maduro.

An initial 20-percent hike in wages for all workers and those receiving pensions will go into effect immediately, and the remaining 10 percent will do so as of July 1, he said.

The Venezuelan president also ordered a general raise of salaries for the country's 2.5 million public-sector workers, which include the armed forces. Endi