Executive Agreement 001-2021

This executive agreement sets the minimum wage increase in Honduras starting July 1, 2021, with different percentages based on economic activity and company size. It affects all workers in the country and aims to maintain their purchasing power considering the economic crisis from COVID-19 and hurricanes.

Whereas the President of the Republic, by means of Agreement Number 626-STSS-2020 dated twenty-one (21) December two thousand twenty (2020), appointed the Minimum Wage Commission composed of representatives of the Employer, Worker, and Public interests.

Whereas the Secretariat of State in the Office of Labor and Social Security, in the exercise of its powers, timely prepared the Study containing the analysis of the economic and social situation of the country, which was provided to the members of the Commission, as it is an indispensable instrument for the review and establishment of the Minimum Wage.

Whereas the Minimum Wage Commission held various hearings, which were held between twenty-eight (28) December two thousand twenty (2020) and fifteen (15) June two thousand twenty-one (2021), with the purpose of reaching a consensual agreement regarding the establishment of the minimum wage, without having achieved the same despite the mediation efforts made by the government representation.

Whereas it is recorded in the Minutes of the hearing held by the Minimum Wage Commission, on fifteen (15) June two thousand twenty-one (2021), in which the representatives of the Employer Interest together with the representatives of the Worker Interest, upon failing to reach agreement regarding the establishment of the Minimum Wage, expressly agreed that the Head of the Executive Branch, in exercise of the powers granted to him by the Constitution of the Republic, shall be the one to review and establish the minimum wage in accordance with the Law.

Whereas it is necessary to establish Minimum Wages, in order to contribute to and maintain the purchasing power of Honduran workers and at the same time contribute to the harmony of relations between employers and workers in the country.

Whereas as a result of the humanitarian and health emergency, the national economy was severely affected, principally due to the effects of the pandemic generated by Covid-19 on productive activity, coupled with the impact of tropical storms ETA and IOTA, said combined events generated an economic contraction of nine point zero percent (9.0%) of real GDP and the inflation rate (CPI) of four point zero one percent (4.01%), according to what was published by the Central Bank of Honduras.

Whereas the President of the Republic, based on the criteria derived from the socioeconomic study conducted by the Secretariat of Labor and Social Security, has decided to establish the increase in the minimum wage taking into consideration the economic, financial, and social situation of the country, in pursuit of maintaining harmony between capital and labor and supporting the strategy to recover the country's economy.