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Honduras - Minimum Wages - 2011


LAST UPDATE

23 August 2011

SOURCES


Name of Act

Agreement N° STSS-223-2011 on Minimum Wages for 2011

Name of Act

Political Constitution, Decree 131, January 1, 1982, published in Official Gazette 23612 on January 20, 1982 (Constitución Política de la República de Honduras) as amended up to 17 August, 2005.

Name of Act

Decree No. 189 promulgating the Labour Code, (Código del trabajo, La Gaceta No. 16,827-16,834, 15-18 and 20-23 July 1959) of 1 June 1959, as amended up, to Decree No. 32-2003, (La Gaceta No. 30,063, 16 April 2003) of 31 March 2003
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Name of Act

Minimum Wage Act, January 20, 1971, published on June 3, 1971 as amended by Decree 43-97 on May 29, 1997

LEGAL DEFINITIONS


Employee/worker

Shall mean any individual person who renders material and/or intellectual services to one or more individual or legal persons, in exchange for remuneration, according to a labour contract.
Labour Code Art.4

Employer

Shall mean any individual or legal person who uses the services rendered by one or more workers according to a labour relation or a labour contract.
Labour Code Art.5

Wage

Shall mean the remuneration that an employer is required to pay a worker under a labour contract or by virtue of a labour relation.
Labour Code Art.360

Minimum wage

Shall mean the wage every worker is entitled to receive to meet normal material, spiritual and cultural needs and those of the members of the worker’s family.
Labour Code Art.381

MINIMUM WAGE FIXING

The Agreement N° STSS-223-2011 on Minimum Wages for 2011, urges in its article 2, to the Economic and Social Committee of Honduras (CES) to incorporate in the agenda of the second semester of the year 2011, the discussion of the establishment of a new mechanism of minimum wage fixing from 2012.
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Art.2

Procedure


Minimum wages set directly by tripartite negotiations

The Ministry of Labour together with the National Minimum Wage Commission fixes minimum wages by sector. The National Minimum Wage Commission is a tripartite institution made up of three government representatives, three employers’ representatives and three workers’ representatives. In the event that the Commission is unable to come to a consensus within the period required, the Executive has the authority to increase the minimum wage.
Labour Code Art.383, 387, 389
Minimum Wage Act Art.15

Minimum wage set through decentralized collective bargaining

Wages can also be fixed by collective agreement. Wages set by collective agreement cannot be lower than the rates set by the legal authority.
Labour Code Art.60

Criteria


Needs of workers and their families

Yes. Every worker is entitled to get a sufficient minimum wage to cover his needs and the ones of his family in the material, moral and cultural sphere.
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Second Recital
Labour Code Art.382

Cost of living

Yes. In order to fix the minimum wage level for each category of worker, it shall be taken into account, among other factors, the cost of living in the country.
Labour Code Art.382

Economic development

Yes. In order to fix the minimum wage level for each category of worker, it shall be taken into account, among other factors, the increments in the costs of the goods and services in the economy of Honduras.
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Fourth Recital

Capacity of employers to pay

Yes. In order to fix the minimum wage level for each category of worker, it shall be taken into account, among other factors, the remuneration systems of the companies.
Labour Code Art.382

Inflation rate

Yes. In order to fix the minimum wage level for each category of worker, it shall be taken into account, among other factors, the inflation rate of the country.
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Fourth Recital

Other provisions

The number of workers employed, the type of business carried out by a company, in case of rural workers, the benefits provided in the form of housing, crops, fuel, and other similar advantages that reduce the cost of living, the fact that some employers may have to provide board and lodging for their workers, all of them are factors which shall also be taken into account when fixing minimum wage rates.
Labour Code Art.382

Coverage


Scope

All workers in the private sector are covered by minimum wage legislation. There is no general minimum wage, and so minimum wages vary according to the sector of work, the type of business concerned and the number of employees.
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Art.1

Excluded categories


» Workers

Disabled workers: a permit may be issued for a disabled worker, stating the percentage of the minimum wage the worker is entitled to receive.
Apprentices: minimum wage rates are not applicable to apprentices.
Minimum Wage Act Art.32
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Specific minimum wage rates


» Specific minimum wage by sector

There are 9 different branches of economic activity with different minimum wage rates according to the different rates; hourly, daily and monthly, and depending on the number of employees employed in the establishment.

The sectors are: 1.Agriculture, forestry, hunting and fishing, 2. Mining and quarrying, 3. Manufacturing, 4. Electricity, gas and water, 5. Construction, 6. Wholesale and retail services./Hotels and restaurants, 7. Transport, storaging and logistics, 8. Financial establishements, insurance services and real state, 9. Community, social and personal services.
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Art.1

» Specific minimum wage by region

No. The Minimum wage rates applies in the whole territory of the country.
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Art.1

Level


Minimum wage level(s) in national currency

As a reference, manufacturing industry ’minimum wage in establishments with 1 to10 employees, is set in 5,857.50 Lempiras monthly, 195.25 daily, and 24.41 hourly. (1 January 2011).
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Art.1

Last minimum wage update

1 January 2011
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Art.1

In-kind allowances

Wages shall be paid in legal tender. However, any benefit in-kind received by a rural worker or rural worker’s family in the form of food, housing, and other articles intended for immediate personal consumption shall be regarded as part of the ordinary remuneration for work done, provided that the value assigned to such benefits does not exceed 30% of the cash wage and that such articles are provided by the employer at or below cost.
Supplies furnished by the employer to the worker free of charge shall not be regarded as wages, and their value shall not be deducted from the cash wage or taken into account when fixing the minimum wage.
Labour Code Art.365, 366

Rate of payment


» Hourly

Yes. Minimum wages may be set hourly.
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Art.1

» Daily

Yes. Minimum wages may be set daily.
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Art.1

» Monthly

Yes. Minimum wages may be set monthly.
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Art.1

Scheduled frequency of adjustment

Minimum wages are adjusted at least one time per year. At the request of either employers or workers, minimum wage rates can also be revised in July if the inflation rate has increased by more than 12%.
Minimum Wage Act Art.35

Enforcement mechanisms


Labour inspection

The Secretariat of Labour and Social Security, through the General Direction on Wages and the General Labour Inspection, will be in charge of monitoring the strictly compliance of the payment of the minimum wages in accordance with the legal regulations.

To this respect, labour inspectors and administrative authorities may carry out inspections in any moment of the day or the night and take any measure which they considered appropriate.
Agreement N° STSS-223-2011 on Minimum Wages for 2011 Art.3
Labour Code Art.616, 617, 618
Minimum Wage Act Art.41

Fines in national currency for non-respect of legislation

Failure to comply with minimum wage legislation constitutes a labour offence and results in fines of between 100 to 1000 Lempiras.
Minimum Wage Act Art.40

Other penalties

Fines for repeat offences shall be 150% higher than the fine imposed for the inital offence.
Minimum Wage Act Art.40

Results generated on: 24th July 2014 at 00:21:57.
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