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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
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:
Local: 1
World: 687
Local: 2
World: 3145
Local: 3
World: 3541
Local: 4
World: 4014
Universidad Tecnológica de Honduras (Technological University of Honduras)
Local: 5
World: 4256
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 |
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.
According to the Honduras labor code, the language of the employment contract must be in Spanish or any other language both parties can understand.
The probation period in Honduras is 60 days.
| 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 |
| 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 |
Leave Compliance
Payroll cycle
The payroll cycle in Honduras is monthly.
Minimum wage
The minimum wage in Honduras ranges from HNL 7,408.00 to HNL 14,348.67 per month.
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.
| 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% |
| Type of contribution | Contribution |
| Sickness & Maternity | 2.5% |
| Disability, Old Age, Death | 2.5% |
| Pension Regime | 1.5% |
| Collective Capitalization pillar | 1.5% |
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%.
The 13th Month pay and 14th-month pay are mandatory for all the employees in Honduras.
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:
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.
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