The Secretary of Labor and Social Security of Honduras (SETRASS) announced the approval of a tripartite agreement between the labor sector, employers, and the Government, establishing the minimum wage adjustment applicable for 2026 and 2027.
The adjustment percentages have been defined based on company size, as follows:
| Minimum wage adjustment table | ||
| Categories | Year 2026 | Year 2027 |
| 1 to 10 employees | 6% | 6% |
| 11 to 50 employees | 6% | 6% |
| 51 to 150 employees | 7% | 7% |
| 151 employees and above | 7% | 7.5% |
These increases will apply broadly across the 11 economic sectors previously defined under applicable regulations.
Key aspects of the agreement
- Retroactive effect: The 2026 adjustment will be effective as of January 1, 2026.
- Deferred payment for MSMEs: A mechanism has been established allowing micro, small, and medium-sized enterprises to defer payment of retroactive amounts until July 2026, when payment in a single installment is not feasible.
- Broad sector coverage: The adjustment applies to sectors such as agriculture, manufacturing, commerce, construction, financial services, transportation, among others.
- Applicable criterion for agro-industrial companies: For companies that manufacture food products and raw materials of agricultural origin, the manufacturing sector minimum wage will apply to employees in industrial roles, while the Agriculture, Livestock, Forestry, Hunting, and Fishing sector minimum wage will apply to employees in agricultural roles.
The agreement provides regulatory certainty in wage matters for the next two years, enabling companies to anticipate and plan their labor cost structures. However, it also entails:
- The need to review and adjust labor budgets for 2026 and 2027.
- Potential impacts on internal wage structures, particularly for positions close to the minimum wage.
- The need to assess effects on pricing, margins, and competitiveness, especially in labor-intensive sectors.
Our team is available to assist companies in assessing the impact of these adjustments, reviewing compensation structures, and ensuring compliance with the new provisions, with the goal of mitigating risks and optimizing labor and financial planning under this new regulatory framework.
