Hire and pay employees in
Honduras, hassle-free

The minimum wage in Honduras varies based on company size and economic sector. For Deel EOR employees, the monthly minimum wage is HNL 13,290.79 per month.

The individual income tax ranges from 0% to 25%. Income tax is calculated according to progressive rates.

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

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.

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.

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

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

In Honduras, all terminated employees for unjust cause are entitled to severance pay. Severance pay varies depending on the length of service as follows:

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.

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.

Part-time employees are entitled to one day per month.

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 takes 3 business days.

The employee will go through a medical exam during the first month of employment.

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