Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Discover EOR in Honduras, where foreign employers can find valuable information and insights about hiring and managing employees in Honduras. Explore essential details on employment laws, mandatory notice periods, transfer of undertakings, severance pay, collective labor contracts, and the role of the Ministry of Labor. Our comprehensive resources will help you navigate the complexities and ensure compliance when engaging in employment practices in Honduras.
| Overview | |
| Continent | Americas |
| Country | Honduras |
| Capital | Tegucigalpa |
| Time zone | UTC−06:00 |
| Total Time zones | 1 |
| Working hours per week | 44 |
| Working week | Monday–Saturday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 30th April |
| Financial Year | 1st January to 31st December |
| Date format | dd/mm/yyyy |
| Currency | Lempira (HNL) |
| VAT | the standard rate is 15% |
Employer Payroll Contributions in Honduras
| Employers | % of Gross Salary |
| Healthcare | 0.05 |
| Disability, Old Age and Death | 3.5% |
| Pension | 1.5% |
| Labor Coverage Insurance | 4% |
| Collective Capitalization Pillar | 2.6% |
| Total Employment Cost | 16.6% |
Employee Payroll Contributions in Honduras
| Employees | % of Gross Salary |
| Sickness & Maternity | 2.5% |
| Disability, Old Age, Death | 2.5% |
| Pension | 1.5% |
| Collective Capitalization Pillar | 1.6% |
| Total Employee Cost | 8.1% |
| Minimum Wage | |
| Minimum Wage | The minimum wage in Honduras is 6762.70 to 12357.84 HNL per month. |
Minimum Wages in Honduras
Honduras has a legal minimum wage that applies to all workers, regardless of age, industry, or experience. The minimum wage is set annually and varies depending on the sector and geographic location. For 2022, the minimum wage rates in Honduras are as follows:
- Urban areas: HNL 9,186.83 per month
- Rural areas: HNL 8,802.89 per month
These rates ensure that workers receive fair compensation for their labor and help promote decent living standards. It's important for employers to comply with the minimum wage requirements to avoid legal repercussions and ensure fair treatment of their employees. The government periodically reviews and adjusts the minimum wage to account for changes in the cost of living and economic conditions.
Payroll Cycle in Honduras
| Payroll | |
| Payroll Cycle | Bi-Weekly, Monthly |
| 13th Salary | Employees are entitled to 13th and 14th salaries and are paid in June and December. Each equals one months’ salary. |
Income Tax Slabs in Honduras
| Income Tax | |
| 0 - 172117.90 HNL | 0% |
| 72117.90 - 262449.27 HNL | 15% |
| 62449.27 - 610347.16 HNL | 20% |
| 610347.16 HNL and above | 25% |
Notice Periods
In accordance with Honduran employment laws, there are mandatory notice periods based on the duration of the employment. These notice periods are as follows:
- 24 hours for employees with at least three months of service with the same employer.
- One week for employees with three to six months of service.
- Two weeks for employees with six months to one year of service.
- One month for employees with one to two years of service.
- Two months for employees with more than two years of service with the same employer.
Written notice must be provided in compliance with the specified terms. Failure to adhere to the notice requirements will result in the employer being liable to provide the equivalent notice period's payment in monetary form.
Transfer of Undertakings/TUPE
The regulations concerning the transfer of undertakings (TUPE) apply to employee transfers in Honduras. These regulations ensure that employee rights are protected during a transfer of business ownership or operations.
Severance Pay
Severance pay in Honduras is subject to a maximum cap of 25 months' salary. The amount of severance pay granted to an employee is based on their length of continuous service. The following guidelines apply:
- For three to six months of continuous work: 10 days of salary.
- For six months to one year of service: 20 days of salary.
- After one year of continuous service: one month of salary per year of service.
Employees who voluntarily resign are entitled to receive payment only for acquired rights. Additionally, after 15 years of continuous service with the same employer, a voluntarily resigning employee is entitled to receive 35% of their severance ("auxilio de cesantÃa") based on their length of service.
Employees who are members of a union's Board of Directors enjoy protection from the State, and employers must obtain authorization from the Ministry of Labor before terminating their employment. It is advisable to refer to the provisions outlined in the collective labor contract for further guidance.