Hire in Honduras

Honduras is a country in Central America situated between Guatemala and El Salvador to the west, and Nicaragua to the south and east. The Honduran constitution states, “The cities of Tegucigalpa and Comayagüela, jointly, constitute the Capital of the Republic.” More than 3/4ths of the land area of Honduras is mountainous. Honduras has had one of the highest economic growth rates in Latin America over the past few years. Its top industries are sugar processing, coffee, woven and knit apparel, wood products, and cigars.

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Honduras.

Honduras

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A quick overview of Honduras

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Cost of living index

$$ (82 of 139 countries)

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Currency

Honduran Lempira (HNL, L)

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Payroll frequency

Monthly

Basic facts

Honduras is a country in Central America situated between Guatemala and El Salvador to the west, and Nicaragua to the south and east. The Honduran constitution states, “The cities of Tegucigalpa and Comayagüela, jointly, constitute the Capital of the Republic.” More than 3/4ths of the land area of Honduras is mountainous. Honduras has had one of the highest economic growth rates in Latin America over the past few years. Its top industries are sugar processing, coffee, woven and knit apparel, wood products, and cigars.

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Honduras.

Capital

Tegucigalpa and Comayagüela

Official language/s

Spanish

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Population

10.59 million (2023 est.)

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VAT - standard rate

15%

The holidays mentioned below are valid for the year 2025.

January 1New Year's Day
April 14Americas' DayMovable, as declared by the Honduran government
April 17Maundy ThursdayMovable, the Thursday before Easter
April 18Good FridayMovable, the Friday before Easter
April 19Easter SaturdayMovable, the first Sunday after the Paschal Full Moon
May 1Labor Day
September 15Independence Day
October 2Francisco Morazán's BirthdayMovable, as per the Honduran government's determination
October 3Day of the RaceMovable, as per the Honduran government's determination
October 4Honduran Armed Forces DayMovable, as per the Honduran government's determination
December 25Christmas Day

The approximate time for sharing the contract with an employee in Honduras is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Employers are prohibited from employing less than 90% of Honduran workers and paying less than 85% of the total wages earned in their respective companies.
  • When the work center is more than two kilometers away from the residence where the worker habitually resides, the employer is obliged to pay for the travel expenses.
  • It is possible to enter into verbal employment contracts for domestic service and temporary jobs within 60 days, as long as the nature of work, remuneration, and the duration of the job are agreed upon between the employer and the employee.
  • Any employer who employs more than five permanent workers in commercial companies, or more than 10 in industrial companies, is required to have a labor regulation.
  • 13th and 14th-month salaries are paid in July and December respectively.

The employer and employee contributions to Social Security are as follows:

Benefits Employer Contribution Employee Contribution
Sickness and Maternity* 5% 2.5%
Invalidity, Old Age, and Death** 3.5% 2.5%
Professional Formation Institute (Instituto Nacional de Formación Profesional or INFOP)  1% None
Collective Capitalization Pillar 2.6% 1.6%
Total 12.1% 6.6%

*Up to a maximum ceiling of HNL 10,342

**Up to a maximum ceiling of HNL 10,796 

There are also contributions to mandatory individual accounts from the Regimen de Aportaciones Privadas (RAP). Any company that has 10 or more employees in the national scope must also contribute to the RAP. 

Benefits Employer Contribution Employee Contribution
Invalidity, Old age, and Death* 1.5% of monthly covered payroll 1.5% of monthly covered payroll
Unemployment 4% of monthly covered employment** None
Total 5.5% 1.5%

*Up to a maximum ceiling of HNL 10,796.

**The employer’s contributions cease when the individual account balance reaches 50% of the maximum severance payable (25 months of the insured’s salary).

Working Hours

In general terms, the ordinary day of work may not exceed eight hours per day and 44 hours per week. The ordinary timing of night work may not exceed six hours a day and 36 hours a week. 

Overtime

The effective work that is executed outside the limits of the ordinary working day, or that exceeds the limits of the working day, agreed by the parties, constitutes extraordinary working hours, and must be remunerated, as follows:

Time Surcharge
Daytime Period 25% surcharge on the daytime salary
Night Period 50% surcharge on the daytime salary
Extraordinary shift as an extension of night shift 75% surcharge on the night shift salary
Probation Period

The trial period, which cannot exceed 60 days, is the initial stage of the employment contract and is intended, on the employer’s part, to assess the worker’s aptitudes, and on their part, the convenience of working conditions. This period is remunerated, and if upon termination neither party expresses its willingness to terminate the contract, it will continue indefinitely. 

Termination Notice Period

The termination period notice is as follows:

Condition Service Period Termination Notice Period
Suspension of work for more than 120 days in certain conditions specified No liability Not applicable
Liquidation or definitive closure 30 days’ notice Not applicable
Indefinite employment contract Less than 3 months 24 hours
3 to 6 months 1 week
More than 6 months to 1 year 2 weeks
More than 1 year to 2 years 1 month
More than 2 years 2 months
Working Hours

In general terms, the ordinary day of work may not exceed eight hours per day and 44 hours per week. The ordinary timing of night work may not exceed six hours a day and 36 hours a week. 

Overtime

The effective work that is executed outside the limits of the ordinary working day, or that exceeds the limits of the working day, agreed by the parties, constitutes extraordinary working hours, and must be remunerated, as follows:

Time Surcharge
Daytime Period 25% surcharge on the daytime salary
Night Period 50% surcharge on the daytime salary
Extraordinary shift as an extension of night shift 75% surcharge on the night shift salary
Probation Period

The trial period, which cannot exceed 60 days, is the initial stage of the employment contract and is intended, on the employer’s part, to assess the worker’s aptitudes, and on their part, the convenience of working conditions. This period is remunerated, and if upon termination neither party expresses its willingness to terminate the contract, it will continue indefinitely. 

Termination Notice Period

The termination period notice is as follows:

Condition Service Period Termination Notice Period
Suspension of work for more than 120 days in certain conditions specified No liability Not applicable
Liquidation or definitive closure 30 days’ notice Not applicable
Indefinite employment contract Less than 3 months 24 hours
3 to 6 months 1 week
More than 6 months to 1 year 2 weeks
More than 1 year to 2 years 1 month
More than 2 years 2 months

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The employer and employee contributions to Social Security are as follows:

Benefits Employer Contribution Employee Contribution
Sickness and Maternity* 5% 2.5%
Invalidity, Old Age, and Death** 3.5% 2.5%
Professional Formation Institute (Instituto Nacional de Formación Profesional or INFOP)  1% None
Collective Capitalization Pillar 2.6% 1.6%
Total 12.1% 6.6%

*Up to a maximum ceiling of HNL 10,342

**Up to a maximum ceiling of HNL 10,796 

There are also contributions to mandatory individual accounts from the Regimen de Aportaciones Privadas (RAP). Any company that has 10 or more employees in the national scope must also contribute to the RAP. 

Benefits Employer Contribution Employee Contribution
Invalidity, Old age, and Death* 1.5% of monthly covered payroll 1.5% of monthly covered payroll
Unemployment 4% of monthly covered employment** None
Total 5.5% 1.5%

*Up to a maximum ceiling of HNL 10,796.

**The employer’s contributions cease when the individual account balance reaches 50% of the maximum severance payable (25 months of the insured’s salary).