Honduras
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
Honduras
Everything you need to know about payroll, benefits & hiring top talent in Honduras
Currency
Honduran Lempira (HNL)
Salary payment frequency
Monthly
Capital
Tegucigalpa
Time Zone
GMT -6:00
Official Languages
Spanish
Is English spoken?
No

Quick Links
Introduction
General Overview & Economic Facts
- Honduras, officially known as the Republic of Honduras, is a country located in Central America
- It spans an area of approximately 112,492 km2 (43,433 sq mi) and has a population of approximately 9 million
- Honduras ranks fairly in terms of human development with a ranking of 132nd on the HDI (2019)
- Its economy ranks 104th in terms of nominal GDP (2019) and 105th in terms of PPP (2019)
Why Employ In Honduras?
- The main exports from Honduras includes coffee, bananas, palm oil and knitted textiles
- 21.03% of the population is between the ages of 15 and 24 years, with 37.79% of the population being between the ages of 25 and 54. Honduras has a mix of a fairly youthful population and a more mature population, making it a favourable country to employ young, energetic employees, as well as a good country to hire more experienced professionals
Overview Of The Labour Law
- The main sources of employment law in Honduras include the Constitution and the Labour Code
- The labour regulations provides the minimum terms and conditions for employment including working hours, leave, notice periods and severance pay
- Hondura’s labour laws provide protection for both employers and employees
Fun Country Facts
- Honduras owns one of the oldest clocks in the world
- Honduran money is called the Lempira, named after a native who died fighting the Spaniards
- Busses in Honduras are called chicken busses
Why Use Playroll Services For Honduras?
- Employing in Honduras requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Honduras
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Social Security
Calculated on gross income
9.50%
RAP Social Convention
Calculated on gross income
1.50%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Social Security
Calculated on gross income
9.00%
Income Tax
Income Tax is ‘Pay As You Earn’
Calculated on taxable income
Income bracket per annum
0.00 – 172 117.89
0.00%
172 117.90 – 262 449.27
15.00%
262 449.28 – 610 347.16
20.00%
610 347.17 and above
25.00%
Employment Terms

General
Minimum Wage
- Minimum wage varies by industry
Working Hours
- Maximum of 8 hours per day and 44 hours per week
- Minimum meal interval of 30 minutes
- Typical working hours are 08h00 to 17h00, Monday to Friday
Overtime
- Maximum of 4 overtime hours per week
Notice Period
- Employed between 0 and 3 months- 1 day
- Employed between 3 and 6 months- 1 week’s notice
- Employed between 6 and 12 months- 2 weeks’ notice
- Employed between 1 and 2 years- 1 months’ notice
- Employed for 2 or more years- 2 months notice
Severance Pay
- Dismissal with cause- no severance pay
- Dismissal without cause-
– Employed between 3 and 6 months- 10 days’ salary
– Employed between 6 months and 1 year- 20 days’ salary
– Employed for 1 year or more- 1 month’s salary for each year of employment (maximum of 25 months’ salary, maximum of 15 months for micro-enterprises
Probation Period
- There is no mandatory probation period
- Probation periods are a maximum of 60 days
Bonus
- Statutory bonus June- 1 month’s salary
- Statutory bonus December- 1 month’s salary
Public Holidays
- January 1st – New Year’s Day
- April 14th – Maundy Thursday
- April 15th – Good Friday
- April 16th – Holy Saturday
- April 18th – Day of Americas
- May 1st – Labour Day
- September 15th – Central American Independence Day
- October 6th – Discovery of America
- October 7th – Honduran Armed Forces Day
- December 25th – Christmas Day

Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- After 1 year of employment- 10 days
- After 2 years of employment- 12 days
- After 3 years of employment- 15 days
- After 4 or more years of employment- 20 days
Sick Leave
- Paid leave
- Paid by employer and Social Security
- Maximum of 26 weeks
Maternity Leave
- Paid leave
- Paid by Social Security
- 10 weeks
Start hiring in Honduras today!