Expand your global workforce in Honduras
Your guide to the employment landscape, working customs and local labor laws in Honduras
Capital
Tegucigalpa
Currency
Lempira (HNL)
Languages
Spanish
GDP per Capita
$2,487.71
Employer Tax
16.6%
Payroll Frequency
Monthly
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
Honduras
Top local universities in Honduras
Universidad Nacional Autónoma de Honduras (National Autonomous University of Honduras)
Ranking
Local: 1
World: 687
Universidad Tecnológica Centroamericana (Central American Technological University)
Ranking
Local: 2
World: 3145
Universidad Catolica de Honduras (Catholic University of Honduras)
Ranking
Local: 3
World: 3541
Universidad Pedagógica Nacional Francisco Morazán (Francisco Morazán National Pedagogical University)
Ranking
Local: 4
World: 4014
Universidad Tecnológica de Honduras (Technological University of Honduras)
Ranking
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 |
Employ in Honduras
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
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| April 14 | America Day | National Holiday |
| April 17 | Maundy Thursday | National Holiday |
| April 18 | Good Friday | National Holiday |
| April 19 | Holy Saturday | National Holiday |
| May 1 | Labor Day / May Day | National Holiday |
| September 15 | Independence Day | National Holiday |
| October 3 | Morazan’s Day | National Holiday |
| October 12 | Columbus Day | National Holiday |
| October 21 | Army Day | National Holiday |
| December 25 | Christmas Day | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 10-20 days | Yes |
| Sick Leave | 24 days (first 12 months of employment) | Yes |
| Maternity Leave | 10 weeks | Yes |
Leave Compliance
Public and Provincial Holidays
Payroll in Honduras
Payroll cycle
The payroll cycle in Honduras is monthly.
Minimum wage
The minimum wage in Honduras is set differently depending on industry, occupation, and number of employees.
Read more
Overtime pay
A standard workweek in Honduras is 44 hours per five-day or six-day week. The overtime pay in Honduras is 125% of the normal salary for daytime, 175% for the night time and if the work is done on rest days or public holidays, it is 200% of the normal salary.
How taxes work
Employer Payroll Tax
| Scheme | Employer Contribution |
| Healthcare insurance | 5% |
| Collective Capitalization Regime
(Disability, Old Age, and Death) |
3.5% |
| Labor Coverage Insurance | 3.30% |
Employee Payroll Tax
| Scheme | Employee Contribution |
| Healthcare insurance | 2.5% |
| Collective Capitalization Regime
(Disability, Old Age, and Death) |
2.5% |
| Labor Coverage Insurance | – |
Employee Income Tax:
| Annual Taxable Income
(Honduran Lempiras, HNL) |
Income Tax Rates (%) |
| 0 to 209,369.62 | 0% |
| 209,369.63 to 319,251.54 | 15% |
| 319,251.55 to 742,445.49 | 20% |
| Above 742,445.50 | 25% |
VAT
The standard rate of VAT is 15% and for premium things it is 18%.
Bonus
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
Employee offboarding
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.
Expand into
150+ countries
Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.
Overtime Pay
Minimum Wage
| Industry | Number of employees | Minimum wage per day |
| Agriculture, Forestry, Fishing, and Hunting | 1-10 | 301.78 |
| 11-50 | 318.77 | |
| 51-150 | 352.44 | |
| 151 and above | 384.72 | |
| Mining and quarrying | 1-10 | 412.29 |
| 11-50 | 425.38 | |
| 51-150 | 506.18 | |
| 151 and above | 577.26 | |
| Manufacturing | 1-10 | 404.69 |
| 11-50 | 431.26 | |
| 51-150 | 513.17 | |
| 151 and above | 585.25 | |
| Electricity, gas, and water Industries | 1-10 | 425.59 |
| 11-50 | 439.11 | |
| 51-150 | 522.50 | |
| 151 and above | 595.89 | |
| Construction | 1-10 | 417.99 |
| 11-50 | 431.26 | |
| 51-150 | 513.17 | |
| 151 and above | 585.25 | |
| Wholesale and retail trade | 1-10 | 417.99 |
| 11-50 | 431.26 | |
| 51-150 | 513.17 | |
| 151 and above | 585.25 | |
| Restaurants and hotels | 1-10 | 417.99 |
| 11-50 | 431.26 | |
| 51-150 | 508.34 | |
| 151 and above | 563.62 | |
| Transport, storage, and communications | 1-10 | 421.79 |
| 11-50 | 435.18 | |
| 51-150 | 517.84 | |
| 151 and above | 590.57 | |
| Financial institutions, real estate, and services provided to companies | 1-10 | 429.39 |
| 11-50 | 443.03 | |
| 51-150 | 527.17 | |
| 151 and above | 601.21 | |
| Community, social and personal services, security activities, building cleaning activities | 1-10 | 410.39 |
| 11-50 | 423.42 | |
| 51-150 | 503.84 | |
| 151 and above | 574.60 | |
| Hospital activities | 1-10 | 410.39 |
| 11-50 | 423.42 | |
Overtime Pay
Visa and Immigration