Honduras
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.
- Capital city
Tegucigalpa
- Currency
Honduran lempira (L, HNL)
- Languages
Spanish
- Population size
9,570,000
- Remote-Owned Local Entity
Facts & Stats
- Capital city
Tegucigalpa
- Currency
Honduran lempira (L, HNL)
- Languages
Spanish
- Population size
9,570,000
- 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)
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
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%
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
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.