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Employer of Record Honduras - Minimum Wages, Notice Period, Severance Pay

Employer of Record Honduras

Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax

Discover EOR in Honduras, where foreign employers can find valuable information and insights about hiring and managing employees in Honduras. Explore essential details on employment laws, mandatory notice periods, transfer of undertakings, severance pay, collective labor contracts, and the role of the Ministry of Labor. Our comprehensive resources will help you navigate the complexities and ensure compliance when engaging in employment practices in Honduras.

Time zoneUTC−06:00
Total Time zones1
Working hours per week44
Working weekMonday–Saturday
Typical hours worked8
Personal Tax filing deadline30th April
Financial Year1st January to 31st December
Date formatdd/mm/yyyy
CurrencyLempira (HNL)
VATthe standard rate is 15%

Employer Payroll Contributions in Honduras

Employers% of Gross Salary
Disability, Old Age and Death3.5%
Labor Coverage Insurance4%
Collective Capitalization Pillar2.6%
Total Employment Cost16.6%

Employee Payroll Contributions in Honduras

Employees% of Gross Salary
Sickness & Maternity2.5%
Disability, Old Age, Death2.5%
Collective Capitalization Pillar1.6%
Total Employee Cost8.1%

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

Minimum Wages in Honduras

Honduras has a legal minimum wage that applies to all workers, regardless of age, industry, or experience. The minimum wage is set annually and varies depending on the sector and geographic location. For 2022, the minimum wage rates in Honduras are as follows:

  • Urban areas: HNL 9,186.83 per month
  • Rural areas: HNL 8,802.89 per month

These rates ensure that workers receive fair compensation for their labor and help promote decent living standards. It's important for employers to comply with the minimum wage requirements to avoid legal repercussions and ensure fair treatment of their employees. The government periodically reviews and adjusts the minimum wage to account for changes in the cost of living and economic conditions.

Payroll Cycle in Honduras

Payroll CycleBi-Weekly, Monthly
13th SalaryEmployees are entitled to 13th and 14th salaries and are paid in June and December. Each equals one months’ salary.

Income Tax Slabs in Honduras

Income Tax
0 - 172117.90 HNL 0%
72117.90 - 262449.27 HNL 15%
62449.27 - 610347.16 HNL 20%
610347.16 HNL and above 25%

Notice Periods

In accordance with Honduran employment laws, there are mandatory notice periods based on the duration of the employment. These notice periods are as follows:

  • 24 hours for employees with at least three months of service with the same employer.
  • One week for employees with three to six months of service.
  • Two weeks for employees with six months to one year of service.
  • One month for employees with one to two years of service.
  • Two months for employees with more than two years of service with the same employer.

Written notice must be provided in compliance with the specified terms. Failure to adhere to the notice requirements will result in the employer being liable to provide the equivalent notice period's payment in monetary form.

Transfer of Undertakings/TUPE

The regulations concerning the transfer of undertakings (TUPE) apply to employee transfers in Honduras. These regulations ensure that employee rights are protected during a transfer of business ownership or operations.

Severance Pay

Severance pay in Honduras is subject to a maximum cap of 25 months' salary. The amount of severance pay granted to an employee is based on their length of continuous service. The following guidelines apply:

  • For three to six months of continuous work: 10 days of salary.
  • For six months to one year of service: 20 days of salary.
  • After one year of continuous service: one month of salary per year of service.

Employees who voluntarily resign are entitled to receive payment only for acquired rights. Additionally, after 15 years of continuous service with the same employer, a voluntarily resigning employee is entitled to receive 35% of their severance ("auxilio de cesantía") based on their length of service.

Employees who are members of a union's Board of Directors enjoy protection from the State, and employers must obtain authorization from the Ministry of Labor before terminating their employment. It is advisable to refer to the provisions outlined in the collective labor contract for further guidance.