Rodrigo Paz tried to appease the protesters last week with a government reshuffle, but that move does not appear to have succeeded. Even a promise to the indigenous population has not helped, and on Saturday, police and protesters clashed for several hours.
Now Paz is reducing his own salary to the equivalent of just over 16,000 kronor a month after saying on Argentine television that he is prepared for far-reaching changes but that "everything has a limit."
The protesters have demanded wage increases, economic stability and an end to the privatization of state-owned companies.
Centrist politician Rodrigo Paz took office in November last year after 20 years of left-wing rule in Bolivia.
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