Remote’s guide to employing in

Honduras
honduras flag

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.

Services available in this country:
Employer of Record ProductContractor Management
  • Capital City

    Tegucigalpa

  • Currency

    Honduran lempira (L, HNL)

  • Languages

    Spanish

  • Population size

    9,570,000

Services available in this country:
Employer of Record ProductContractor Management
Beach in Tegucigalpa

Facts & Stats

Honduras
  • Capital City

    Tegucigalpa

  • Currency

    Honduran lempira (L, HNL)

  • Languages

    Spanish

  • Population size

    95,70,000

  • 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 Labour 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 4 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

Jan
Monday 1 January, 20241New Year's Day (Año Nuevo)
Mar
Thursday 28 March, 20242Maundy Thursday (Jueves Santo)
Friday 29 March, 20243Good Friday (Viernes Santo)
Saturday 30 March, 20244Holy Saturday (Sábado Santo)
Apr
Sunday 14 April, 20245America Day (Dia de america)
May
Wednesday 1 May, 20246Labour Day (Día del Trabajador)
Sept
Sunday 15 September, 20247Independence Day (Día de la Independencia)
Oct
Thursday 3 October, 20248Morazan's Day (Día de Morazan)
Saturday 12 October, 20249Columbus Day (Día de la Raza)
Monday 21 October, 202410Army Day (Día del ejército)
Dec
Wednesday 25 December, 202411Christmas Day (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 practising “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 fulfil 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%Labour coverage insurance
2.6%Collective Capitalization pillar

Types of leave

Employees can enjoy up to 20 days of paid holiday annually, depending on their tenure with an employer.

Up to 1 year of employment: 10 days of paid holiday

1-2 years: 12 days of paid holiday

2-3 years: 15 days of paid holiday

4+ years: 20 days of paid holiday

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.

Fair Pricing in Honduras

Employer of Record

Hire and pay your global team

Starting at $599/month

for annual plans

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

$29

per contractor/month

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app