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Honduras: Employment Indicators and Benefits
Country Study > Chapter 3 > The Economy > Human Resources > Employment Indicators and Benefits

EMPLOYMENT INDICATORS AND BENEFITS


Honduran governments have set minimum wages since 1974, but enforcement has generally been lax. That laxity increased at the beginning of the 1980s. Traditionally, most Honduran workers have not been covered by social security, welfare, or minimum wages. Multinational companies usually paid more than the standard minimum wage, but, overall, the Honduran wage earner has experienced a diminution of real wages and purchasing ability for more than a decade. When they occurred, minimum wage adjustments generally did not keep up with cost of living increases. After a major currency devaluation in 1990, average Honduran workers were among the most poorly paid workers in the Western Hemisphere. By contrast, the banana companies paid relatively high wages as early as the 1970s. Banana workers continued at the top of the wage scale in the 1990s; however, in the 1980s, as banana production became less laborintensive, the companies had decreased their investment and work force. Consequently, fewer workers were employed as relatively well-paid agricultural wage earners with related benefits.

President Callejas responded to the severe poverty by implementing a specially financed Honduran Social Investment Fund (Fondo HondureƱo de InversiĆ³n Social -- FHIS) in 1990. The fund created public works programs such as road maintenance and provided United States surplus food to mothers and infants. Many Hondurans slipped through that fragile social safety net, however. As a continuing part of the social pact, and even more as the result of a fierce union-government battle, President Callejas announced in 1991 a 27.8 percent increase over a minimum wage that the government had earlier agreed upon. That increase was in addition to raises of 50 and 22 percent set, respectively, in January and September 1990. Despite those concessions, the minimum daily rate in 1991 was only US$1.75 for workers employed by small agricultural enterprises and US$3.15 for workers in the big exporting concerns; most workers did not earn the minimum wage.

Data as of December 1993




Last Updated: December 1993


Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for Honduras was first published in 1995. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on Factba.se.

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