Country Payroll Guide Honduras

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Key Facts

Capital
Tegucigalpa
Date format
dd/mm/yyyy
Currency
Lempira (HNL)
VAT
the standard rate is 15%

Contributions

Employers

Healthcare
Healthcare - 5%
Disability, Old Age and Death
Disability, Old Age and Death - 3.5%
Pension
Pension - 1.5%
Labor Coverage Insurance
Labor Coverage Insurance - 4%
Collective Capitalization Pillar
Collective Capitalization Pillar - 2.6%
Total Employment Cost
Total Employment Cost - 16.6%

Employees

Sickness & Maternity
Sickness & Maternity - 2.5%
Disability, Old Age, Death
Disability, Old Age, Death - 2.5%
Pension
Pension - 1.5%
Collective Capitalization Pillar
Collective Capitalization Pillar - 1.6%
Total Employee Cost
Total Employee Cost - 8.10%

Minimum Wage

Minimum Wage
The minimum wage in Honduras is 6762.70 to 12357.84 HNL per month.

Payroll

Payroll Cycle
Bi-Weekly, Monthly
13th Salary

Employees are entitled to 13th and 14th salaries and are paid in June and December. Each equals one months’ salary.

Income Tax

Employee Income Tax (1)
0 - 172117.90 HNL - 0%
Employee Income Tax (2)
72117.90 - 262449.27 HNL - 15%
Employee Income Tax (3)
62449.27 - 610347.16 HNL - 20%
Employee Income Tax (4)
610347.16 HNL and above - 25%

Working Hours

General Working Hours

44 hours per week.

Overtime

Overtime pay is paid at the rate of 137.5% of the regular pay. For work on a rest day, the pay rate is 200% of the regular pay. For night work, the pay rate is 125% of the regular pay.

Leave

Paid Time Off
  • Up to one year of employment – 10 days.
  • One to two  years of employment – 12 days.
  • Two to three years of employment – 15 days.
  • Four or more years of employment – 20 days.

In addition to the leave, the employee is entitled to vacation pay which must be paid out at least three days before the leave is taken.

Public Holidays

11 days.

Sick Days

Sick leave starts from the third day of sickness.  Employees are entitled to up to 26 weeks of sick leave per year and can be extended up to 52 weeks.  Pay is 66% of the average of the previous 3 months or 100% if the employee is hospitalized and has no dependents. Pay is split equally between the employer and social security.

Maternity Leave

Mothers are entitled to 10 weeks of 100% paid leave, with salary partially covered by the employer and the IHSS. Four weeks of leave should be taken before delivery and six weeks should be taken after.

Paternity Leave

There are no statutory laws for paternity leave.

Parental Leave

There are no statutory laws for parental leave.

Termination

Termination Process

Termination procedure depends on if it is a case of dismissal with just cause or wrongful dismissal. Dismissal with just cause is effective from the moment the employer notifies the employee; however, the employee does have the right to take the employer to court and require they provide evidence to prove their dismissal was fair.

If the employer cannot prove dismissal with cause, the employee is entitled to compensation for damages and losses and accrued unpaid wages. The employee also has the right to file a claim against the employer and request reinstatement. If termination is deemed wrongful and the employee is reinstated, the employer is not required to pay termination benefits.

Notice Period
  • Less than three months of employment – 24-hours’ notice.
  • More than three months but less than six months of employment – one weeks’ notice.
  • More than six months but less than one year of employment – two weeks’ notice.
  • More than one year but less than two years of employment – one months’ notice.
Severance Pay

For employees who were dismissed for just cause, there is no severance payment entitlement. For employees who were dismissed for unjust cause or dismissed indirectly (i.e. failure on the part of the employee to pay wages on time) are entitled to severance pay:

  • Three to six months of employment – 10 days of wages.
  • Six months to a year of employment- 20 days of wages.
  • One year or more – one months’ salary for every year of employment, capped at 25 months.
Probation Period

60 days.

Visa

Employment Visa

Honduras’ work visas or permits are decided based on duration and the nature of a foreigner’s work assignment. Some people can come to the country for 90 days and perform unremunerated activities without a work permit. However, it’s best to work with the government before traveling to assess the need.

Certain visa-exempt nationals can travel to the country and stay for periods of up to 60 days. However, citizens of other countries may need a Consular Visa or a Consulted Visa for business visits. Most of your employees will need a Special Stay Permit with a Work Contract or a Temporary Residence Work Permit. The Special Stay Permit is valid for at least a year and up to five years. After it expires, employees must apply for temporary residence to stay.