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Remote’s guide to employing in

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Make employment in Honduras easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Honduras, all in one easy-to-use platform.

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  • Capital city


  • Currency

    Honduran lempira (L, HNL)

  • Languages


  • Population size


  • Remote-Owned Local Entity

Services available in this country:
Employer of RecordContractor Management

Facts & Stats

Honduras Map Illustration
  • Capital city


  • Currency

    Honduran lempira (L, HNL)

  • Languages


  • Population size


  • Ease of doing business


  • Cost of living index

    42.20 (2021)

  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    -9.0% (2020)

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.

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).

Risks of misclassification

Honduras, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Honduras may lead to fines and penalties for the offending company.

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.

11 Public holidays

Sunday, January 1, 20231New Year (Año Nuevo)
Thursday, April 6, 20232Maundy Thursday (Jueves Santo)
Friday, April 7, 20233Good Friday (Viernes Santo)
Saturday, April 8, 20234Holy Saturday (Sabado Santo)
Monday, April 17, 20235Americas´Day (Día de las Americas)
Monday, May 1, 20236Labor Day (Día del trabajo)
Friday, September 15, 20237National Day (Día de la independencia)
Thursday, October 5, 20238Soldier´s Day (Día del soldado)
Friday, October 6, 20239Columbus Day (Día de la raza)
Saturday, October 7, 202310Army´s Day (Día de las fuerzas armadas)
Monday, December 25, 202311Christmas (Navidad)

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

Taxes in Honduras

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Honduras.

  • 5%


  • 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

Types of Leave

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

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.