Work and Wages

Minimum Wage

Minimum wage is a wage every worker is entitled to receive to meet normal material, spiritual and cultural needs and his/her family's needs. The Constitution of Honduras states that every worker has the right to earn a minimum wage, fixed periodically through a Decree. Minimum wage must be adequate to meet the family, moral and cultural needs of a worker.

Minimum wage is determined by the Ministry of Labour on recommendation of the National Minimum Wage Commission. Minimum wage may be set differently for different occupations and regions taking into account the cost of living, relative fitness of employees, inflation rate of the country, the increment in the costs of the goods and services in the economy and remuneration systems in companies. Minimum wage is also fixed by collective agreement, provided that the wage cannot be lower than the rates set by the legal authority.

The Honduran Constitution mandates the State to monitor, inspect and penalize the firms that do not comply with labour laws. The Constitutional obligation is complied with by the Ministry of Labour and Social Welfare through its different directorates and inspectorates namely the General Inspectorate of Labour, Inspectorate of Occupational Safety and Health and Directorate General of Wages. These institutions ensure compliance with all labour code provisions including the minimum wage.

Failure to comply with minimum wage regulation constitutes a labour offence and leads to a fine ranging between 100-1,000 Lempiras. In the case of repeat offence, 150% of the earlier fine is imposed as penalty. A worker may recover wages through a court if an employer has been paying below the minimum wage rate.

Source: §128 and 138 of the Constitution of Honduras 1982;§381-387 of the Labour Code 1959; §39-41 of the Minimum Wage Act 1971

Regular Pay

Wage is the remuneration that an employer is required to pay to a worker under a labour contract or by virtue of a labour relation.In accordance with the Labour Code, wages must be paid regularly and in legal tender to a worker or an authorized person at workplace during working hours or immediately after work in presence of two witnesses. Payment of wages in recreation places (casinos) or where alcohol is sold is prohibited unless the wages are to be paid to the workers of these establishments. Wage payment me be calculated per unit of time (hours, day, week, fortnight or a month) or piece rate (task or piece of work) or as a share of profits or sales. Employers and employees may set a deadline/wage payment interval however this period may not be longer than a week (7 days) for manual workers and one (1) month for intellectual workers and domestic worker.

 

In-kind payment received by a rural worker or their family in the form of food, housing, and other articles of personal consumption are allowed, provided that the value assigned to such benefits must not exceed 30% of the cash wage and that such articles are provided by the employer at or below cost. Payment in a form of promissory notes, vouchers, tokens, or coupons which is intended to replace the salary is prohibited.

Source: §364-370 of the Labour Code 1959

Regulations on Work and Wages

  • Código del Trabajo, Decreto Nº 189 (modificado en 2003) / Labour Code, Decree No. 189 (amended in 2003)

Loading...