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Honduras Employment Guide

Your quick guide on talent and labor compliance norms in Honduras




Lempira (HNL)



Payroll Frequency


GDP per Capita


Employer Tax


Talent Overview

The Republic of Honduras is a Central American country and home to mesoamerican culture. The country’s GDP improved after the fiscal year of 2020. The Republic of Honduras holds the economic freedom score pof 59.5, making it the 92nd freest country. Out of 32 countries, Honduras ranks 20th in economic development.

Major economic hubs:

Tegucigalpa, San Pedro Sula, Choloma

Skills in demand:

IT engineer, Software engineer, General Managers

Map 51

Local Universities

The top local universities in Honduras are as follows:

Uni1 76

Universidad Nacional Autónoma de Honduras (National Autonomous University of Honduras)


Local: 1

World: 687

Uni2 64

Universidad Tecnológica Centroamericana (Central American Technological University)


Local: 2

World: 3145

Uni3 55

Universidad Catolica de Honduras (Catholic University of Honduras)


Local: 3

World: 3541

Uni4 53

Universidad Pedagógica Nacional Francisco Morazán (Francisco Morazán National Pedagogical University)


Local: 4

World: 4014

Uni5 49

Universidad Tecnológica de Honduras (Technological University of Honduras)


Local: 5

World: 4256

Salary Data

The average monthly data in Honduras is provided below:

Job Title Average Monthly Salary (HNL) Average Monthly Salary (USD)
Financial Manager 54,000 HNL 2186.31 USD
General Manager 45,100 HNL 1825.97 USD
Business Development Manager 40,100 HNL 1623.54 USD
Business Analyst 34,100 HNL 1380.61 USD
Financial Analyst 33,900 HNL 1372.52 USD
Project Manager 31,400 HNL 1271.30 USD
Talentsource 72

Talent Sourcing Tips

Top Local Job Boards

Indeed, Glassdoor

Number of LinkedIn users


Employing in Honduras

While onboarding an individual from Honduras, it is important to know about the employment laws, benefits, social security, deductions, and allowances in Honduras. This section contains all the information that is necessary for an employer.

Employee Contract

According to the Honduras labor code, the language of the employment contract must be in Spanish or any other language both parties can understand.

Probation Period

The probation period in Honduras is 60 days.

Public and Provincial Holidays (2023)

Date Name Type
1 Jan New Year’s Day National Holiday
2 Jan Public Sector Holiday Government Holiday
6 Apr Maundy Thursday National Holiday
7 Apr Good Friday National Holiday
8 Apr Easter Saturday National Holiday
14 Apr America Day National Holiday
1 May Labour Day National Holiday
15 Sep Independence Day National Holiday
3 Oct Francisco Moranzan’s Birthday National Holiday
12 Oct Columbus Day National Holiday
21 Oct Army Day National Holiday
25 Dec Christmas Day National Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 10-20 days Yes
Sick Leave 26 weeks (with 66% of the regular pay) Yes
Maternity Leave 12 weeks (6 weeks before birth, and 6 weeks after birth) Yes


Payroll 1

Payroll Cycle

The payroll cycle in Honduras is monthly.

Payroll 2

Minimum Wage

The minimum wage in Honduras ranges from HNL 7,408.00 to HNL 14,348.67 per month.

Payroll 3

Overtime Pay

A standard workweek in Honduras is 40 hours per five-day or six-day week. The overtime pay in Honduras is 25% of the normal salary for daytime, 50% for the night time and if the work exceeds more than nightwork, it is 75% of the normal salary.


13th Month Pay

The 13th Month pay and 14th-month pay are mandatory for all the employees in Honduras.

Employee Benefits

  • Disability Benefit
  • Insurances
  • Family Allowance
  • Leaves


Employer Payroll Tax

Type of contribution Contribution
Healthcare (IHSS) 5%
Disability, Old Age, Death 3.5%
Pension Regime 1.5%
Labour Coverage Insurance 4%
Collective Capitalization pillar 2.6%

Employee Payroll Tax

Type of contribution Contribution
Sickness & Maternity 2.5%
Disability, Old Age, Death 2.5%
Pension Regime 1.5%
Collective Capitalization pillar 1.5%

Employee Income Tax:

Personal Income Tax

Annual Taxable Income Tax Rate
From 0.01 to 199,039.47 HNL 0%
From 199,039.47 to 303,499.90 HNL 15%
From 303,499.90 to 705,813.76 HNL 20%
Above 705,813.76 HNL 25%

Municipal Income Tax

Companies with five or more employees must withhold this tax once a year, as per the following table:

Taxable income (HNL) Tax per ´000
From 0 to 5,000 HNL 1.50
From 5,001 to 10,000 HNL 2
From 10,001 to 20,000 HNL 2.50
From 20,001 to 30,000 HNL 3
From 30,001 to 50,000 HNL 3.50
From 50,001 to 75,000 HNL 3.75
From 75,001 to 100,000 HNL 4
From 100,001 to 150,000 HNL 5
Above 150,001 HNL 5.25


The standard rate of VAT is 15% and for premium things it is 18%.

Offboarding & Termination

The employment contract can be terminated either by both parties; however, the employer can terminate only for misconduct. Also, a notice is to be given for the employee to listen to their explanation. The employee can take the employer to court if the dismissal is unlawful.

The notice period in Honduras varies as per the length of the service, as given below:

Length of service Notice period
Less than 3 months 24 hours
3 – 6 months 1 week
6 months – 1 year 2 weeks
1 – 2 years 1 month

The severance pay in Honduras is:

  • 3 to 6 months, 10 days of regular pay
  • 6 months to less than 1 year, 20 days of regular pay
  • More than 1 year, 30 days of regular pay

Visa and Immigration

An individual can work and stay with a visa from the National Visa Center (NVC). The individual must go through an interview and apply for the visa along with personal documents and an employment contract.

Visa 73
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Minimum Wage

Overtime Pay

Visa & Immigration