Honduras
This guide has important information for businesses looking to hire employees or contractors in Honduras.
This guide has important information for businesses looking to hire employees or contractors in Honduras.
| Category | Details |
|---|---|
| Minimum Wage | Starts at HNL 9,053.43 (varies by sector and company size) |
| Overtime Wage | 125% of regular pay (daytime); 150%-175% (nighttime); 200% (rest days/holidays) |
| Meal Breaks | 30 Minutes |
| Rest Breaks | 2 hours for women employees |
| Working hours | 8 hours/day, 44 hours/week (day shift) |
| Salary Payment Cycle | Monthly or bi-monthly |
| Payroll Taxes | IHSS sickness & maternity (5%), IHSS disability/old age/death (3.5%), RAP social housing (1.5%), INFOP vocational training (1%) |
| Paid Vacation | 10 days, 20 after 4 years |
| Overtime Hours | Max 3 hours/day or 9 hours/week beyond standard hours |
| Night Shift Hours | 7 PM - 5 AM, max 36 hours/week |
| Holidays | 11 Holidays per year |
| No Work Days | Sunday |
Honduras is a Central American country with a nominal GDP of approximately $39.45 billion (2025). Real GDP growth was 3.6% in 2024 and 3.8%-3.9% in 2025. Growth for 2026 is projected at 3.5%-4.0%, driven by private consumption, remittances, exports, and public investment.
The currency is Honduran Lempira (HNL).
Hiring in The Honduras
A business needs a local entity in Honduras to hire locally. You also need to set up a local bank account to pay the wages.
Setting up an entity in Honduras navigating multiple agencies. It can take 10-12 weeks to incorporate the business and open a bank account. Most businesses hire a local attorney or law firm to register a business in the country.
Honduras requires employment contracts. They should clearly outline terms and conditions of employment such as compensation, working hours, benefits, and termination clauses.
The business also needs to comply with local benefits, payroll, tax, and HR laws.
Like in most countries, Honduras laws treat employees and contractors differently. You must classify people correctly to avoid fines.
Minimum Wage in Honduras
Minimum wage in Honduras varies by the industry and size of business.
In addition to the minimum wages, many employers also pay two month’s salary (13th and 14th month salary). This makes the total annual salary 14-times the monthly salary.
The lowest monthly salary is HNL 9,053.43 for agricultural businesses employing 1-10 people.
The highest monthly salary is HNL 17,557.35 for commerce, services, and construction businesses that employ more than 150 workers.
The 2025 adjustment increased wages by 5.5%-7.5% depending on sector and company size. For the maquiladora sector, the pre-agreed 2026 rate is HNL 12,930.07/month (8% increase). For other sectors, the 2026 adjustment is expected to exceed 4.98% based on 2025 inflation.
Working Hours in Honduras
Standard working hours in Honduras are 8 hours per day or 44 hours per week. Sunday is a holiday throughout the country. Workers can work for a maximum of 6 days in a week.
Managers can work up to 12 hours in a day.
You can employ workers less than 18 years of age. Workers between 14-16 years can work for 4 hours a day. Those between 16-18 years of age can work up to 6 hours in a day. These workers can work for a maximum of 36 hours in a week.
Night shift timings are 7PM to 5 AM. Workers who work in the night-time cannot work for more than 36 hours in a week.
If an employee works a mixed day-night shift, the weekly hours cannot cross 42 hours. Women employees who are between 14 to 18 years must be given tow-hour rest break during work hours. Overtime pay in Honduras is 125% of the regular wage for daytime hours (5 AM - 7 PM) and 150%-175% for nighttime hours (7 PM - 5 AM). Overtime is capped at 3 hours per day or 9 hours per week.
Those working on a Sunday, rest day, or public holiday are entitled to pay at 200% of the regular pay.
Payroll and Taxes in Honduras
The payroll cycle in Honduras can be monthly, bi-monthly, weekly, daily, or hourly. However, most employers follow monthly or bi-monthly pay cycle.
You need to pay 13th and 14th salaries to employees. Each of these is equal to a full-month salary. These are paid in December and July.
Employers need to pay the following payroll taxes:
| Type of deduction/tax | Employer Contribution | Employee Contribution | Salary Ceiling |
|---|---|---|---|
| IHSS Sickness & Maternity (EM) | 5.0% | 2.5% | HNL 11,903/month |
| IHSS Disability, Old Age & Death (IVM) | 3.5% | 1.0% | HNL 11,336/month |
| RAP (Social Housing Fund) | 1.5% | 1.5% | HNL 9,382.40/month |
| INFOP (Vocational Training) | 1.0% | Nil | — |
| Occupational Risk Insurance | 0.2%-3.4% | Nil | Varies by risk classification |
Total employer burden is approximately 12%-16% on top of base salary, depending on risk classification.
Income tax rates in Honduras (2026, adjusted for 4.98% inflation):
| Annual Taxable Income (HNL) | Tax Rate |
|---|---|
| Up to HNL 228,324.31 | 0% (exempt) |
| HNL 228,324.32 - HNL 388,254 | 15% |
| HNL 388,254 - HNL 849,660 | 20% |
| Above HNL 849,660 | 25% |
The monthly exempt threshold is HNL 22,360.36. An additional HNL 40,000 annual deduction for medical expenses applies, bringing total exempt income to HNL 268,324.31 annually.
Statutory Leave Policies in Honduras
There are 11 national paid public holidays in Honduras. The 2026 dates are:
| Date | Holiday |
|---|---|
| January 1 (Thursday) | New Year's Day (Ano Nuevo) |
| February 3 (Tuesday) | Our Lady of Suyapa (Virgen de Suyapa) |
| April 2 (Thursday) | Maundy Thursday (Jueves Santo) |
| April 3 (Friday) | Good Friday (Viernes Santo) |
| April 4 (Saturday) | Holy Saturday (Sabado de Gloria) |
| April 14 (Tuesday) | Day of the Americas (Dia de las Americas) |
| May 1 (Friday) | Labor Day (Dia del Trabajo) |
| September 15 (Tuesday) | Independence Day (Dia de la Independencia) |
| October 3 (Saturday) | Francisco Morazan's Birthday |
| October 12 (Monday) | Columbus Day (Dia de la Raza) |
| October 21 (Wednesday) | Armed Forces Day (Dia de las Fuerzas Armadas) |
| December 25 (Friday) | Christmas Day (Navidad) |
Employees are entitled to a minimum of 10 paid vacation days after one year of work. If one of the public holidays falls on Saturday or Sunday, then the holiday is moved to the following Monday.
Vacation entitlement increases to 12 days after second year, 15 days after third year, and 20 days after fourth year.
Expectant mothers get four weeks of maternity leave before birth and six weeks after birth. They must get paid at 66% of their average salary over the previous three months.
Women who do not have social insurance from the government are entitled to paid maternity leave from their employers.
Employees also get 10 weeks of paid leave for adopting a child.
Women employees are also entitled to an additional three months of leave in case of a medical complication during pregnancy or childbirth.
Men do not get paternity leave in Honduras.
Employees get 66% of the last three months’ salary for up to 26 weeks in case of an illness. It can be extended to 52 weeks in case of a serious illness or injury.
Employers must give paid leave to employees if the employees aren’t covered by social security. Employees must have at least two months of contributions in the previous four months to qualify.
Employee Benefits
Honduras has a comprehensive social security system that offers several benefits to employees:
- Minimum 10 days of paid annual leave
- 11 public holidays
- Maternity benefits
- Sick leave
- Overtime pay
- Severance pay
- 13th & 14th month pay
- Social security benefits like health insurance, old age, and death benefits
Some employers also provide supplemental health insurance to their employees.
Employee Termination
The maximum probation period in Honduras is two months or 60 days.
An employee contract in Honduras can be mutually terminated on valid grounds. Employees are eligible for a severance pay in case the termination is on unfair grounds.
The notice period for termination is generally included in the employment contract. If not, the notice period is determined as follows:
- 24 hours notice is required if the employee has worked for less than three months
- One week notice period is mandatory if the employee has worked between three and six months
- Two weeks notice is required if the employment period was between six months and a year.
- Employee is eligible for one month notice period if the work duration is between one and two years .
- For more than two years of employment, the notice period is two months
Employees are eligible to receive a severance pay if a long-term contract is ended unfairly.
Severance Pay
| Length of Employment | Severance Pay |
|---|---|
| 3 to 6 months | 10 days of pay |
| 6 to 12 months | 20 days of pay |
| Over 1 year | One month’s pay for every year of employment, subject to a maximum of 25 months |
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