More Money for the Masses: Honduras Increases Minimum Wage

April 2, 2007
Roatan, Honduras

The Honduran government voted in favor of increasing the minimum wage by 9.7% - a small but significant victory for many. Now minimum-wage workers will make what amounts to about $139 dollars per month instead of about $127. An extra $12 monthly wouldn't go far in North America, but in a country where a worker can buy a prepared lunch for under $2, it makes a difference.

Civil service employees have also received an increase of 8%. The decision was made just a few weeks ago, but the government has decided to apply the salary retroactively from January 2007, which means that the approximately 500,000 workers affected will receive back payments. Employers have been given until this April 30 to make the necessary changes and make all back payments.

Honduran President Manuel Zelaya approved the wage hike following months of negotiations with unions, businesses and Ministry of Labor representatives. The union representatives were pushing for a 25% hike, but say they were forced to compromise because the business sector kept breaking off negotiations.

Best Regards,

Suzan Haskins
Editor, Latin America Insider
For International Living / Honduras

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*Source: La Prensa de Honduras, March 19, 2007.