Honduras: Businesses Will Not Implement Pay Rise Retro-actively

The country's private enterprise council (Cohep in Spanish) has indicated that new legislation does not require them to retroactively apply the increase in the minimum wage.

Friday, April 15, 2011

Armando Urtecho, Cohep executive director, has stated that according to articles 96 of the Honduran Constitution and 7 of the Civil Code, the law that came into force on April 1 cannot apply retroactively.

"The articles mentioned set out that the country's laws can only have a retro-active effect in penal cases, when a new law might favor a criminal or person being tried," reports an article in LaPrensa.hn.

More on this topic

Minimum Wage to Increase between 15 and 18% in Panama

January 2012

The Executive has established a rise of between 15 and 18% in the minimum hourly wage, depending on economic activity, occupation and the size of the business, across the country.

A press release from the Presidency of the Republic of Panama states:

In virtue of the inability of the National Minimum Wage Commission, made up of workers and employers, to reach an agreement on the minimum wage, which should come into effect from January 1, 2012, the Executive has established an increase of between 15 and 18% on the minimum hourly wage, depending on economic activity, occupation and size of businesses across the country.

Honduras: Businessmen Opposed to Retroactive Wage

October 2010

The Honduran Council of Private Enterprise (Cohep), reiterated that they are unable to pay a retroactive wage adjustment.

Santiago Ruiz, president of Cohep, told La Tribuna, "What is there to negotiate is an adjustment for 2011; we suggest a meeting and try to advance in what the minimum salary should be in order to have something predictable for the next three years."

Honduras to Increase Minimum Wage

October 2010

In the absence of agreements at negotiating tables between employers and employees, the President approved the increment.

This was announced by President Porfirio Lobo, who gave no details of percentages to be applied, but stressed that the increase will be retroactive.

Honduran businessmen reject minimum wage increase proposal

November 2008

The Honduran Private Sector Council is not ready to accept the proposal for an immediate minimum wage increase for workers of $291 (5500 Lempiras).

The tripartite commission including worker's union leaders, businessmen and the Secretary of Labor will begin, in the next few days, the process of negotiating the new adjustment for minimum wage that will come into effect starting January 1, 2009.

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