Hire and pay employees in
Honduras, hassle-free
With Deel, your business can easily hire employees in Honduras. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.
The average onboarding time frame in Honduras is 3 days with Deel.
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Currency
Honduran lempira - HNL (salaries in USD)

Capital
Tegucigalpa
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Official Language
Spanish
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Payroll Cycle
Monthly
Onboard, pay and manage employees in Honduras with Deel.
Usually, to hire in Honduras, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Deel lets you hire employees in Honduras quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
All the necessary benefits for Honduras
built right in
Deel allows you to provide localized benefits for employees in Honduras within minutes. All in one manageable online dashboard.
- Retirement Pension
- Social Security
- Worker Compensation (Professional Training)
- Private Healthcare - Unisure (optional)
- Private Healthcare - Allianz (optional)
- Global Life Insurance - Allianz
Our quickstart guide to hiring in Honduras
Navigate the tabs below to learn everything you need to know about hiring an employee in Honduras
Minimum Wage Requirements
The minimum wage in Honduras varies depending on the company's activity and size.For Deel EOR employees, the monthly minimum wage for 2024 is HNL 12,597.91.
Individual Income Tax
The individual income tax ranges from 0% to 25%. Income tax is calculated according to progressive rates.
Tax Rate |
Annual Taxable Income |
0% |
HNL 0 to 209,369.62 |
15% |
HNL 209,369.63 to 319,251.54 |
20% |
HNL 319,251.55 to 742,445.49 |
25% |
Over HNL 742,445.50 |
Payroll Cost
The employer cost is generally estimated at 15.20% of the employee salary.
- Honduran National Institute for Vocational Training (INFOP) - 1%
- Public Health Insurance (Disability, Retirement, Death) - 3.5%*
- Public Health Insurance (Sickness, Maternity) - 5%
- Public Health Insurance (Professional Risk) - 0.20%
- Housing Fund (RAP): Fondo de Vivienda - 1.50%***
- Housing Fund (RAP): Cesantia/Reserva Laboral - 4%****
*Calculated on the employee's salary up to a maximum salary of HNL 11,109.30
**Calculated on the employee's salary up to a maximum salary of HNL 11,336.32
***Calculated on the portion of the employee's salary higher than HNL 11,336.32
****Calculated on the portion of the employee's salary up to a maximum salary HNL
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, from Monday to Friday, and 4 hours on Saturday, accumulating 44 hours per week.
Overtime payment is mandatory and is not included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 16 hours of overtime a week. For additional hours, employees are paid:
- 125% of the hourly rate for overtime undertaken between 5:00-19:00
- 175% of the hourly rate for overtime undertaken between 19:00-5:00
- 150% of the hourly rate for overtime undertaken mixed between the above hours
- 200% of the hourly rate for overtime undertaken on weekends and public holidays.
Maternity Leave
Paternity Leave
Parental Leave
Sick Leave
Employees are entitled to paid sick leave for up to 26 weeks. The leave is paid at 66% of an employee's average salary over the last 3 months. The payment is split between the employee and employer. After an additional 3 day observation period employees can add additional 26 weeks if required.
Period | Pay | Payer |
---|---|---|
0 - 3 days | 0% | N/A |
4 - 364 days | 100% | Employer 35% Social Security 65% |
Termination Requirements
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in Honduras can be complex. There is no at-will termination in Honduras for employers and termination must be done for just cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer based on:
- Probation period
- Objective grounds
- Disciplinary dismissal
- Performance due to unsuitability for the job
- By the expiration of the contract
Notice Period
The minimum notice period is 1 day and will be increased according to the length of the employment.
- 1 day if the length of service is less than 3 months
- 1 week if the length of service is less than 6 months
- 2 weeks if the length of service is less than 1 year
- 1 month if the length of service is less than 2 years
- 2 months if the length of service is over 2 years
Severance for Employees
In Honduras, all terminated employees for unjust cause are entitled to severance pay. Severance pay varies depending on the length of service as follows:
Length of Service | Severance |
---|---|
Between 3 to 6 months | 10 days |
Between 7 to 12 months | 20 days |
More than 12 months | 1 month per year up to 15 months(years) |
To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country. Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.
Paid Time Off
Full-time employees are entitled to 10 working days of paid time off (PTO) a year. PTO and accrual rate varies depending on the length of services. During the first year of employment, an employee is not allowed to take more than 10 days.
Years of Service | Days Leave (Working Days) | Accrual Rate (Working Days) |
---|---|---|
qUp to 1 years | 10 | 0.833 |
1 -2 years | 12 | 1.000 |
2-3 years | 15 | 1.250 |
after 4 years | 20 | 1.666 |
Part-time employees are entitled to one day per month.
Public Holidays
Honduras celebrates 11 national holidays.
National public holidays include:
- New Years Day
- Maundy Thursday
- Good Friday
- Easter Saturday
- Americas' Day Holiday
- Labor Day
- Independence Day
- Francisco Moranzan's Birthday
- Day of the Race
- Army Day
- Christmas Day
Onboarding
Onboarding takes 3 business days.
The employee will go through a medical exam during the first month of employment.
Employment Contract Details
Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.
A contract must include:
- Name
- Start date
- Length of the employment
- Job description
- Termination conditions
Probation Period
Hiring in Honduras, hassle-free
With Deel, your business can easily hire employees in Honduras with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Honduras and 150+ countries.
Starting at 599 USD
Management fee
15.20%
Estimate Employer Cost
*of employee salary
Want to learn the cost of hiring an employee in Honduras?
View our Employee Cost Calculator+
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