Employ in Honduras with ease.
Remote makes employment in Honduras easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence.
Remote-Owned Local Entity
We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
Capital city
Tegucigalpa
Currency
Honduran lempira
(L, HNL)Languages spoken
Spanish
Services available:
Facts & Stats
The Republic of Honduras (República de Honduras) is Central America’s second-largest nation and is bordered by Guatemala, El Salvador, and Nicaragua. While the island nation is famous for its breathtaking landscape that’s dotted with mountains, rainforests, and well-preserved Mayan ruins, there’s even more to Honduras than meets the eyes.
Honduras is rich in natural resources and is famous for its tropical fruit, sugar cane, and coffee that’s exported across the Americas.
Capital city
Tegucigalpa
Currency
Honduran lempira
(L, HNL)Languages spoken
Spanish
Population size
9,570,000 (2020)
Ease of doing business
Medium
Cost of living index
42.20 (2021)
Payroll frequency
Monthly
VAT - standard rate
15%
GDP - real growth rate
-9.0% (2020)
Grow your team in Honduras with Remote
Looking to employ workers in Honduras? Companies hiring in Honduras must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Honduras on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Honduras team. You can also pay contractors now in Honduras with Remote in some currencies (talk to an expert now for full details).
Employing in Honduras
We can help you get a new employee started in Honduras fast. The minimum onboarding time we need is only 7 working days.
Provisions for employee protections and workers’ rights are spelled out in the Honduran Constitution as well as across several government statutes, including:
- The Honduran Labor Code
- The National Program of Employment Per Hour, and
- Bylaws and Depositions of Social Security & Minimum Wage
Employees in Honduras enjoy protections against discrimination based on age, religion, gender expression, and race.
Onboarding Time
We can help you get a new employee started in Honduras fast. The minimum onboarding time we need is only 5 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Competitive benefits package in Honduras
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Honduras are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
- Health Insurance
- Dental Insurance
- Vision Insurance
- Mental Health Support
- Pension or 401(K)
- Life and Disability Insurance
Calculate the cost to hire an employee
in Honduras
Taxes in Honduras
Learn how employment taxes affect your payroll and your employees’ paychecks in Honduras.
Employer
5%: Healthcare
3.5%: Disability, Old Age, Death (capped at 10,282.37 HNL, i.e., $424.47)
1.5%: Pension Regimen de Aportaciones Privadas; Compulsory for businesses with 10+ employees
4%: Labor coverage insurance
2.6%: Collective Capitalization pillar
Employee
2.5%: Sickness and Maternity (capped at 9,849.70 HNL, i.e., $406.61)
2.5%: Disability, Old Age, Death
1.5%: Pension Regimen de Aportaciones Privadas; Compulsory for businesses with 10+ employees
1.6%: Collective Capitalization pillar
Income tax rates
0%: up to 172,117.90 HNL ($7105.34)
15%: 172,117.90 HNL ($7105.34) to 262,449.27 HNL ($10834.38)
20%: 262,449.27 HNL ($10834.38) to 610,347.16 HNL ($25196.24)
25%: 610,347.16 HNL and beyond ($25196.24+)
Types of leave
Paid time off
Employees can enjoy up to 20 days of paid vacation annually, depending on their tenure with an employer.
Up to 1 year of employment: 10 days of paid vacation
1-2 years: 12 days of paid vacation
2-3 years: 15 days of paid vacation
4+ years: 20 days of paid vacation
Public holidays
There are 10 public holidays that employees can take off work.
Sick leave
Any sick leave that exceeds a three day period must be allowed by employers as long as it is certified by the Institute of Social Security. Salary from sick leave that does not exceed three days must be covered completely by the employer.
Sick leave after the fourth day will be paid as follows:
- The IHSS will pay 66% of the ceiling in force (which changes every year in connection to the approved minimum wage)
- The employer will pay the difference between the employee’s actual salary and the subsidy paid by the IHSS.
Maternity leave
New mothers are entitled to a minimum mandatory maternity leave period of 42 days before birth and another 42 days after birth. Maternity benefits are paid for jointly by the employer and the social security. The employer must pay the difference between 66% of a ceiling published every year based on the approved minimum wage and the employee’s actual salary.
Paternity/parental leave
There are no provisions for parental or paternity leave under Honduran law.
Other leave
The Labor Code establishes that employers must give permission to the employee to be absent from work in case of public duties, trade union duties, attending a coworker’s funeral, and serious domestic calamity (this is not defined by the Work Code, but it is mostly invoked in cases of sickness or death of immediate relatives).
- Bereavement leave: Although bereavement leave is not expressly provided by law, the employer can give PTO for serious domestic calamity.
- Marriage leave: Couples qualify for five consecutive days of paid marriage leave.
- Civil & union duty: Workers can take up to six days off for union engagements and up to half a day for attending court proceedings.
Employment termination
Termination process
Employee contracts can be terminated with notice once a reasonable cause is provided and adequate warnings have been made. Employers are required to reinstate employees if a court rules a termination was unfair.
Notice period
There is no mandatory notice period under Honduran law and employers are only required to adhere to whatever was agreed to in the employment contract.
Severance pay
Employees who’re dismissed unfairly are entitled to severance payments proportional to their tenure working with an employer.
- 3 - 6 months: 10 days pay
- 6 months - 1 year: 20 days pay
- One year and above: one month’s salary for each year worked, capped at 25 months’ pay.
Probation periods
The probation period is limited to 60 days or roughly two months.
