LatinNews Daily - 27 February 2024

*Honduras’s leftist government led by President Xiomara Castro has announced an agreement with the private sector and unions to increase the minimum wage between 5.50% and 7% for 2024 and 2025 – an agreement retroactive as of the start of the year. The extent of the increase depends on the size of the company: those with 50 employees or less will see increases of 5.50% in 2024 and 2025; those of 51-150 workers will see increases of 6.50%; and those with 151 workers or more will see increases of 7.00% in 2024 and 2025. As regards the maquila (export processing) sector, the increase will be of 6.5% in 2024, 7.5% in 2025, and 8% in 2026. The same agreement stipulates that if the inflation rate for 2024 is higher than the increase for the minimum wage earmarked for 2025, the latter should be adjusted accordingly.