Bolivia President Rodrigo Paz slashes salary by half as protests surge

Bolivian President Rodrigo Paz announced on 25 May 2026 that he and his cabinet would cut their salaries by 50 percent. The decision, presented in Sucre, was framed as a concrete austerity signal amid a fourth week of nationwide unrest. Protesters in La Paz, El Alto and other regions have blocked major highways, causing severe shortages of food, fuel and medicines and sparking clashes with police that have involved tear‑gas, dynamite and at least four reported deaths.

The government also unveiled a “perdonazo” tax‑amnesty aimed at small traders, transporters and artisans with debts under 10 million bolivianos since 2017. The United States State Department pledged emergency food and logistical assistance for the affected populations. Opposition groups, including the Central Obrera Boliviana and supporters of former president Evo Morales, continue to demand Paz’s resignation and have called for early elections, while Morales warned of bloodshed if he is detained. Paz warned that “everything has a limit” but said the administration remains open to dialogue.

The crisis reflects deep political polarization over economic reforms, fuel subsidies and perceived elite alignment, with the salary cut and tax‑amnesty intended to mitigate public anger while the government seeks to restore supply chains and stability.