Hire employees in

Honduras, hassle-free

Hire 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.

Download the Guide

Currency

Honduran lempira - HNL

Capital

Tegucigalpa

Official Language

Spanish

Payroll Cycle

Monthly

Hire employees in Honduras. No entity needed.

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.

Honduras also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Honduras quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

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
  • Worker Compensation (Professional Training)
  • Private Healthcare - Unisure (optional)

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 is complex. The minimum wage is dependent on the number of employees at a company and the type of work carried out. For Deel, the most relevant size and activity will be HNL 10,008.14-13,346.47 per month.

Individual Income Tax

The individual income tax ranges from 0% to 25%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Gross Annual Income Tax Rate (%)
Up to HNL - 172,117.89 0%
Up to HNL - 262,449.27 15%
Up to HNL - 610,347.16 20%
Over HNL - 610,347.16 25%

Employer Cost

The employer cost is generally estimated at 15.37% of the employee salary.

  • Public Health Insurance (Disability, Retirement, Death) - 3.5%
  • Public Health Insurance (Sickness, Maternity) - 5.0%
  • Public Health Insurance (Professional Risk) - 0.20%
  • Retirement Pension - 1.50%
  • Severance Provision - 4.0%
  • Worker Compensation (Professional Training) - 1.17%

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

Employees are entitled to 10 weeks of paid leave. 4 weeks must be taken before the child's birth. The remaining 6 weeks must be taken after. The employee will receive 100% of the salary during this period, Social Security will be responsible for 66% and the employer will pay 34%.

Paternity Leave

There is no paternity leave currently required by law.

Parental Leave

In Honduras, no law covers parental leave. However, employees may be entitled to maternity leave and paternity 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 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)

Paid Time Off

Full-time employees are entitled to 10 working days of paid time off (PTO) a year. PTO and aural 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) Aural Rate (Working Days)
Up 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.

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

Probation periods are mandatory and will last 60 days.
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Download the complete guide to hiring in Honduras

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Hiring 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.

Group (8)

599 USD

Management fee

Group (9)

15.37%

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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