Retroactivity of Minimum Wages Questioned in Honduras

The Honduran Council of the Private Enterprise is considering contesting the retroactive pay of minimum wages.

Monday, April 4, 2011

Santiago Ruiz, president of the council, argued that the law does not match the reality of the country and that many sectors will be unable to comply with it.

“Currently 62% of companies – most of them small and medium – fail to comply with minimum wage regulations. This percentage will only go up”, noted Ruiz.

More on this topic

8% Wage Increase in El Salvador

April 2011

The Government, private enterprise and workers agreed to a minimum wage increase of 8% for all sectors.

The National Minimum Wage Council is a body under the Ministry of Labour, and is composed of seven members, two of which represent the employment sector, two the workforce and three represent the government sector.

Honduras: Businesses Will Not Implement Pay Rise Retro-actively

April 2011

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.

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.

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.

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