Business and Labor Agree on Minimum Wage Hike

Honduras Weekly
President Porfirio Lobo and representatives of the business community and labor in Honduras met yesterday at the Presidential House in Tegucigalpa to sign an agreement (STSS0012012) to increase the minimum wage in the country in 2012 and 2013. The increases will range between 5.6 percent and 7.5 percent, depending on the number of workers employed by a company and the type of production in which it is involved. President Lobo described the agreement as "historic" because it is the first time in many years that business and labor have been able to reach a negotiated deal on the minimum wage without the need for government involvement. "You have given Honduras a wonderful present. This will go into the annals of history. The two principal actors, capital and labor, have come to an agreement by consensus, without more intervention from the government... solely through a natural process of mediation," said Mr. Lobo.

Under the agreement, the minimum wage for companies with 50-150 employees will rise by 6.24 percent annually. Companies with more than 150 workers will be required to increase the wage by 7.25 percent. Minimum wage rates for companies within the maquila industry will go up by 6 percent in 2012, 7.5 percent in 2013, and 8 percent in 2014. With the new adjustments, the minimum wage in Honduras will range between Lps 4,643 (US$244) and Lps 7,666 (US$403). (1/13/12)

The following table lists the minimum wage for 2012 by industry sector and number of employees:

Mines & Quarries
1-10 employees: Lps 6,301.68
11-50 employees: Lps 6,490.74
51-150 employees: Lps 6,784.82
More than 151 employees: Lps 6,849.3

Manufacturing
1-10 employees: Lps 6,181.52
11-50 employees: Lps 6,580.46
51-150 employees: Lps 6,878.62
More than 151 employees: Lps 6,944.01

Electricity, Gas & Water
1-10 employees: Lps 6,504.96
11-50 employees: Lps 6,700.11
51-150 employees: Lps 7,008.68
More than 151 employees: Lps 7,070.26

Construction
1-10 employees: Lps 6,388.70
11-50 employees: Lps 6,580.46
51-150 employees: Lps 6,778.46
More than 151 employees: Lps 6,944.01

Transportation, Stockage & Communications
1-10 employees: Lps 6,466.88
11-50 employees: Lps 6,640.29
51-150 employees: Lps 6,941.15
More than 151 employees: Lps 7,007.14

Financial Services, Goods & Furniture
1-10 employees: Lps 6,563.04
11-50 employees: Lps 6,759.93
51-150 employees: Lps 7,666.21
More than 151 employees: Lps 7, 133.39

Communal, Social & Personal Services
1-10 employees: Lps 6,272.64
11-50 employees: Lps 6,460.82
51-150 employees: Lps 6,753.55
More than 151 employees: Lps 6,817.75

Investigation & Security Services, Janitorial Services
1-10 employees: Lps 6,503.04
11-50 employees: Lps 6,759.93
51-150 employees: Lps 7,023.55
More than 151 employees: Lps 7,023.65

Hosptial Services
1-10 employees: Lps 6,272.64
11-50 employees: Lps 6,460.82
51-150 employees: Lps 6,712.87
More than 151 employees: Lps 6,712.87

Companies under the Free Zone Law
1-10 employees: Lps 4,643.34