Decree No. 48-2024, Law for the Regulation of Contributions and Quotas of the Honduran Institute of Social Security (IHSS)
Congreso Nacional
- Decree: 48-2024
- Published: May 28, 2024
- Issuing body: Congreso Nacional
- Gazette: 36,545
- Category: Labor
Summary
This law restores social security contributions to the IHSS that were eliminated by a court ruling. Employers contribute 3.5%, workers 2.5%, and the State 0.5% to protect against disability, old age, and death. It also requires accumulated funds to be used to improve health services, under oversight of transparency agencies.
Considerations
Whereas the Constitution of the Republic establishes in Article 59: "The human person is the supreme purpose of society and the State. Everyone has the obligation to respect and protect it. The dignity of the human being is inviolable...".
Whereas social security is a fundamental human right recognized in the Constitution of the Republic in its Article 142, with the objective of guaranteeing the economic means of subsistence in case of contingencies of illness, maternity, family subsidy, old age, orphanhood, forced unemployment, work accidents, occupational illnesses, verified unemployment, and all other contingencies that affect their capacity to produce.
Whereas in accordance with Article 142 of the Constitution of the Republic, it is the responsibility of the Honduran Institute of Social Security (IHSS) to provide and administer social security services, which together with other institutions of assistance and social welfare, shall function in a unified manner in a State Unitary System, with the contribution of all interested parties and the State itself, in order to implement in a gradual and progressive manner the covered risks, as well as the geographic areas and categories of protected workers in the totality of services and benefits of social security.
Whereas the Constitutional Chamber of the Supreme Court of Justice declared through a Judgment of unconstitutionality issued in Resource No. SCO-858-2015, the total repeal of Decree No. 56-2015 of May 21, 2015, published in the Official Gazette "La Gaceta" dated July 2, 2015, containing the Framework Law of the Social Protection System; a Judgment that was ordered published by this Branch of State and that appears in the Official Gazette "La Gaceta" dated October 27, 2022.
Whereas the Declaration of Unconstitutionality related in the preceding recital nullified the three percent (3%) increase in the rate for the Disability, Old Age and Death Fund and furthermore, the graduality agreement which allowed movement of the contribution ceiling for the different Regimes of the Honduran Institute of Social Security (IHSS), thereby causing a loss of income of L2,971 million as of December 2023 and with this, plunging the Institute into a deep financing crisis, therefore, it is necessary to restore these contributions to social security in Honduras.
Whereas in an ordinary session of the Board of Directors of the Honduran Institute of Social Security (IHSS), held on March 2, 2023, through Resolution No. SOJD-IHSS-053-2023 and ratified by the Economic and Social Council (CES) on March 15, 2023, establishes a proposal for the addition of three (3) articles, referring to the contribution rates for the benefit of Disability, Old Age and Death (IVM), as well as the contribution ceilings for the Regimes of Disability, Old Age and Death (IVM) and Illness and Maternity (EM) of the Honduran Institute of Social Security (IHSS).
Whereas the Executive Power ratified and sent the aforementioned proposal through the State Secretary in the Office of the Presidency by means of Memorandum SDP-368-2022, dated March 20, 2023.
Whereas in accordance with Article 205, Attribution 1) of the Constitution of the Republic, it is the power of the National Congress: To create, decree, interpret, reform, and repeal laws.
Articles
CONTRIBUTION TO THE IHSS SOCIAL SECURITY REGIME. For the benefit of Disability, Old Age and Death (IVM), which is administered by the Honduran Social Security Institute (IHSS), the contribution rate shall be three point five percent (3.5%) for the employer, two point five percent (2.5%) for the worker, and zero point five percent (0.5%) for the State. The calculation of the State's contribution, as a contribution to Social Security, shall be based on the total number of active affiliates in the Honduran Social Security Institute (IHSS). These percentages shall be applied to the contribution ceilings in force for this regime.
GRADUALISM. For the years 2024 and 2025, the contribution ceilings shall be as follows: For subsequent years, the Board of Directors of the Honduran Social Security Institute (IHSS), based on an actuarial study, must establish the contribution ceilings for the Disability, Old Age and Death Regime (IVM) and the Illness and Maternity Regime (EM).
CONCERNING THE ACCUMULATED FUNDS AS OF THE EFFECTIVE DATE OF THIS LAW AT THE IHSS. The funds that the Honduran Social Security Institute (IHSS) has accumulated as a result of any contribution, premium, interest, and other amounts generated from the application of the repealed Social Protection Framework Law shall be allocated to improve the provision of health services for the beneficiaries of the Institute. The Honduran Social Security Institute (IHSS), for this purpose, must prepare and execute an investment plan for the resources accumulated as of the date of repeal of such Law. To ensure transparency and efficiency of resources, the investment proposals prioritized by the administration of the Honduran Social Security Institute (IHSS) shall be reviewed, evaluated, and monitored by a Commission composed of the State Department for Transparency and the Fight Against Corruption (STLCC), which shall coordinate it, and the State Department for Health (SESAL).
EFFECTIVE DATE. This Decree shall enter into force on the day of its publication in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress, on the thirtieth day of the month of April of two thousand twenty-four. HUGO ROLANDO NOÉ PINO PRESIDENT JOSUÉ FABRICIO CARBAJAL SANDOVAL SECRETARY LINDA FRANCÉS DONAIRE PORTILLO SECRETARY To the Executive Branch Therefore: Let it be executed. Tegucigalpa, M.D.C., May 8, 2024 IRIS XIOMARA CASTRO SARMIENTO PRESIDENT OF THE REPUBLIC THE STATE SECRETARY IN THE OFFICE OF LABOR AND SOCIAL SECURITY
Related laws
- Decreto Legislativo No. 48-2024 — Ley para la Regulación de las Aportaciones y Cotizaciones del Instituto Hondureño de Seguridad Social (IHSS) (Decree 48-2024, 2024)
- Law for Regulation of Contributions to the Honduran Social Security Institute — This law restores IHSS contributions that had been eliminated by a court ruling, setting new contribution rates: employers contribute 3.5%, workers 2.5%, and the State 0.5% for pensions for disability, old age and death. It affects all workers and employers affiliated with IHSS, aiming to fund social security services that were in crisis. (Decree 48-2024, 2024)
- Law for the Regulation of Contributions and Quotas of the IHSS — This law establishes the contribution percentages that employers, workers, and the State must pay to IHSS for retirement and disability benefits: 3.5% employers, 2.5% workers, and 0.5% the State. It also sets the maximum salary caps for calculating contributions for 2024 and 2025, and directs previously accumulated funds toward improving the institute's health services. (Decree 48-2024, 2024)
- Decreto Legislativo No. 36-2024 — Ley para el Uso Racional y Eficiente de la Energía en Honduras — This law requires Honduras to use energy rationally and efficiently to reduce costs and protect the environment. It creates institutions responsible for regulating energy equipment, financing savings projects, establishing consumption labels on appliances, and promoting energy efficiency education across all sectors of the country. (Decree 36-2024, 2024)
- Acuerdo No. 6728-2024 — Modificación de la Unidad Técnica de Infraestructura para los Nuevos Hospitales (UTINH) (Decree 6728-2024, 2024)