The Supreme Court has ordered the cost of giving bonuses to employees of the state run monopolistic distributor to be incorporated into fuel prices.
The resulting increase in fuel prices forces the country's economy to directly pay for the privileges enjoyed by some public officials, aggravating a situation in the private productive sector which must find new ways of staying competitive in a local context which is becoming increasingly adverse, with an unfavorable exchange rate for the export sector and rising production costs.
The recently adopted legislation requires companies to make a tax contribution equivalent to 4% of the monthly salary of each employee on their payroll.
In addition to the monthly contribution of 4%, the new Framework Law of Social Protection System for a Better Life states that "...Employers must pay into the respective sub-account of a worker's labor reserve until the respective account reaches an amount equal to the amount of the unemployment benefit provided for in Articles 102 and 120 A of the Labour Code, at its highest level. The employer must renew contributions for workers who when their ordinary salaries increase are entitled to receive a higher amount for severance pay. "
The Honduran Council of Private Enterprise has pointed out that the Framework Law on Social Protection System "threatens sustainability of businesses and harms labor competitiveness in the country".
From a statement issued by the Honduran Council of Private Enterprise (COHEP)
The Honduran Council of Private Enterprise (COHEP) has been asserting for more than ten years the need for a comprehensive reform of social security, for this reason it congratulates President Juan Orlando Hernandez, for taking the initiative to completely overhaul the social security system in Honduras
After a decade of operating in El Salvador, Grupo Calvo is asking the government to achieve its goal of making La Union into a pole for development.
According to Manuel Calvo, from Calvo Group CEO, in a decade of operating in the eastern port of El Salvador, there is still the thorn in its side of failing to become a great center for tuna. "Basically is lacks cheaper costs," said the businessman, who added that the company needs government support to overcome the obstacles in this new phase.
The Guatemalan Ministry of Labour is working on a bill draft and Labor Code reforms, in order to ensure social security and benefits are given to part-time employees.
The minister, Carlos Contreras, said his organization is working on a bill called the Employment Inclusion Act. It aims to ensure that part-time staff are recruited, but with the guarantee of Social Security payments and the support of the law.
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