President Rodrigo Paz announced on Monday that he will reduce his salary and those of his ministers by 50 percent as protests against his government entered their fourth week.
The center-right president made the statement in the city of Sucre. His current monthly salary stands at approximately 24,000 bolivianos, or about $3,500. The cut applies immediately to Paz and his cabinet.
The move comes as Bolivia faces its worst economic crisis in four decades. Protests that began in early May over fuel shortages and inflation have expanded into broader opposition, with many demonstrators now calling for Paz’s resignation and new elections.
Economic Crisis Deepens
Indigenous groups, trade unions, and supporters of former president Evo Morales have blocked major roads, cutting supplies to the administrative capital La Paz and creating shortages of food, fuel, and medicine.
Police clashed with protesters on Saturday while attempting to clear blockades. Paz has previously fired an unpopular labor minister and promised greater consultation with trade unions and Indigenous organizations, but those measures have not ended the unrest.
“This president has made the decision, as part of his efforts and commitment to the country, to reduce his salary by 50 percent,” Paz said in his announcement.
Also Read: Bolivia Coup: Military Storms Presidential Palace
It was not immediately clear whether the salary reduction would satisfy demonstrators. In an interview on Saturday with Argentine broadcaster TN, Paz said he would pursue dialogue but added that “everything has a limit.” He did not rule out declaring a state of emergency if the blockades continued.
“The president is starting off on the right foot, aiming to generate better investments,” said Bolivian economic analyst Gonzalo Chávez. “But he’s not addressing the core problems.”
Protests Expose Deep Divisions in Bolivia
Paz, 58, an economist from a family with a long political history, took office in November 2025. His election ended two decades of socialist governments led by the Movement for Socialism (MAS) party and Evo Morales, Bolivia’s first Indigenous president.
Since assuming power, Paz has sought to address the root causes of the economic crisis, including a chronic shortage of foreign currency linked to generous fuel subsidies maintained by previous administrations. Despite these efforts, fuel supplies remain unstable, and inflation has risen.
Also Read: Win for Morocco as Bolivia Suspends Its Recognition of “SADR”
Morales, who faces legal charges including allegations of trafficking a minor and failed in a political comeback attempt last year, called on Sunday for Paz to resign and for new elections to be held.
The current protests reflect deep divisions in Bolivian society. Many in rural and Indigenous communities, along with public sector workers, have opposed Paz’s attempts to reduce subsidies and implement fiscal adjustments.
Road blockades have disrupted supply chains for weeks, worsening daily hardships in a country where fuel and dollar shortages were already acute before Paz took office.
Paz’s government has described the measures as necessary to restore economic stability.
Supplies in La Paz remain limited, and the government has not provided a timeline for resolving the blockades.
