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.

Whereas the Constitution of the Republic establishes in Article 59: "The human person is the supreme end 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, workplace accidents, occupational diseases, proven unemployment, and all other contingencies that affect their capacity to produce.

Whereas in accordance with Article 142 of the Constitution of the Republic, it corresponds to the Honduran Institute of Social Security (IHSS) the provision and administration of 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 gradually and progressively the risks covered, as well as the geographic areas and categories of workers protected in all services and benefits of social security.

Whereas the Constitutional Chamber of the Supreme Court of Justice declared through a Judgment of unconstitutionality issued in Appeal No. SCO-858-2015, the total repeal of Decree No. 56-2015 of May 21, 2015, published in the Official Journal "La Gaceta" dated July 2, 2015, containing the Framework Law of the Social Protection System; a Judgment that was mandated to be published by this Branch of State and which appears in the Official Journal "La Gaceta" dated October 27, 2022.

Whereas the Declaration of Unconstitutionality referenced in the preceding recital rendered ineffective the three percent (3%) increase in the rate for the Invalidity, Old Age and Death Fund and furthermore, the agreement on graduality which allowed moving 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 in December 2023 and thus plunging the Institute into a profound 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, regarding the contribution rates for the benefit of Invalidity, Old Age and Death (IVM), as well as the contribution ceilings for the Regimes of Invalidity, Old Age and Death (IVM) and Illness and Maternity (EM) of the Honduran Institute of Social Security (IHSS).

Whereas the Executive Branch ratified and sent the proposal described above through the Secretariat of State in the Office of the Presidency through Official Letter SDP-368-2022, dated March 20, 2023.

Whereas in accordance with Article 205, Attribution 1) of the Constitution of the Republic, it is within the power of the National Congress: To create, enact, interpret, reform and repeal laws.