Honduran lempira - HNL
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
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%|
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.
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.
|0 - 3 days||0%||N/A|
|4 - 364 days||100%||Employer 35% Social Security 65%|
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
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|
|after 4 years||20||1.666|
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
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:
- Start date
- Length of the employment
- Job description
- Termination conditions
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.
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