Find your employer of record in Honduras
Honduras
Lempira (HNL)
Currency
monthly
Payroll Frequency
0 to 16.60
Employer Tax
With 2 clicks, start your journey to Hire a contractor or remote employees in Honduras without a entity set up.
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
Tegucigalpa
Lempira (HNL)
DD/MM/YY
January 1st-December 31st
0 / 5 Star (0 Reviews)
Write ReviewFind your employer of record in Honduras
Honduras
Lempira (HNL)
Currency
monthly
Payroll Frequency
0 to 16.60
Employer Tax
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
Tegucigalpa
Lempira (HNL)
DD/MM/YY
January 1st-December 31st
0 / 5 Star (0 Reviews)
With 2 clicks, start your journey to Hire a contractor or remote employees in Honduras without a entity set up.
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Overview
Lempira (HNL)
CURRENCY
Tegucigalpa
CAPITAL
monthly
PAYROLL FRECUENCY
11
PUBLIC HOLIDAYS
0 to 16.60
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Honduras
Employer
Company Payroll Contributions
0% - 5%
Healthcare Contribution (IHSS)
0% - 3.5%
Contribution to Disability, Old Age, and Death. It has an upper limit of 10,282.37 HNL.
0% - 1.5%
Contribution to RAP (Regimen de Aportaciones Privadas). It only applies to companies with ten employees or more.
0% - 4%
Labor Coverage Insurance Contribution
0% - 2.60%
Collective Capitalization Pillar Contribution
0% - 16.6%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 2.50%
Contribution to Sickness and Maternity. It has an upper limit of 9,849.70 HNL
0%- 2.50%
Contribution to Sickness and Maternity. It has an upper limit of 9,849.70 HNL Contribution to Disability, Old Age, and Death. It has an upper limit of 10,282.37 HNL.
0%- 1.50%
Contribution to RAP (Regimen de Aportaciones Privadas). It only applies to companies with ten employees or more.
0%- 1.60%
Collective Capitalization Pillar Contribution
0% - 8.1%
Total Employee Cost
Employee Income Tax in Honduras
0%
Less than 172,117.90 HNL
15%
From 172,117.90 HNL to 262,449.27 HNL
20%
From 262,449.27 HNL to 610,347.16 HNL
25%
From 262,449.27 HNL to 610,347.16 HNL More than 610,347.16 HNL
Minimum Wage in Honduras
General
In essence, payroll outsourcing services pay employees in Honduras a minimum wage depending on their industry and the number of employees. Indeed, the minimum salary varies between 6,762.70 HNL for agriculture workers and 12,357.84 HNL for business services and financial institutions.
$190 Minimum Wage per month
Payroll Contributions in Honduras
Payroll Cycle
Indeed, companies providing Contractor Management Services in Honduras make salary payments through payroll outsourcing companies once a week, twice a month, or monthly. Furthermore, employees in Honduras also can receive hourly wages according to their employment contracts.
13th Salary
In summary, PEO services in Honduras will tell you that 13th-month payments are mandatory. Moreover, workers from Honduras receive an additional month’s salary by the end of the year.
To sum up, payroll outsourcing in Honduras pays the 13th-month salary in December and the 14th-month salary in July.
Employee Benefit in Honduras
Visa and work permit in Honduras
In essence, Visa-exempt nationals and visa nationals can enter Honduras for business or work. Indeed, the first can enter the country without an entry visa and stay for 30 days.
On the other hand, visa nationals must apply for a Consular Visa or a Consulted Visa with authorization from the Ministry of Foreign Affairs.
Furthermore, every foreign citizen in Honduras can extend their business stay for up to 90 additional days until it reaches 120 days. However, you can stay up to 180 days a year in Honduras if your business visits are multiple within 365 days.
In addition, you can perform work activities without a work permit in Honduras within the 30-day stay and without receiving remuneration from a Honduran source. On the contrary, you will need a Special Stay Permit with Work Contract to work for a Honduran company.
Finally, it is worth mentioning that the Special Stay Permit has a validity of between one and five years. After those five years, you must apply for temporary residence.
VAT in Honduras
In Honduras, the standard VAT rate is 15.00%.
Working Hours in Honduras
General
In short, the regular work week, according to employment laws in Honduras, is 44 hours long and involves working up to 8 daily hours. Besides, Honduran managers and supervisors can work up to 12 hours a day.
Last, PEO services in Honduras must remember that minors’ working hours can vary depending on their age.
Overtime
Indeed, every Contractor Management Services Company in Honduras will advise you that all working hours surpassing the standard hours are overtime. Therefore, employers must pay them according to the employment laws in Honduras, employment contracts, and collective agreements.
On the other hand, workers from Honduras have a maximum of 12 hours of overtime per week. Furthermore, PEO services in Honduras indicate that employers must pay them a compensation rate of 137.50% of their regular salary.
Finally, the compensation rate for overtime can increase to 200.00% if you work on a rest day, besides an additional 125.00% for night hours.
Working Week
Monday to Saturday.
Employee Termination in Honduras
Termination Process
Indeed, employment laws in Honduras indicate that employers can terminate your employment contract due to business, personal, or worker misconduct reasons. Above all, it requires written notification and explanation.
On the other hand, workers from Honduras must receive a warning in case of misconduct. Indeed, it gives them a chance to explain their actions in detail.
Finally, employees in Honduras that work for a payroll outsourcing firm can take their employer to court in the case of unlawful dismissal. Above all, they can return to work or receive compensation if termination is deemed wrongful because of a lack of evidence.
Notice Period
In essence, the amount of notice depends on the length of service of employees in Honduras. Indeed, an employer terminating an employment contract must use one of the following notice periods:
- Twenty-four hours’ notice for workers from Honduras with a length of service no longer than three months.
- One weeks’ notice for employees in Honduras with a length of service between three and six months.
- Two weeks’ notice for Honduran workers with a length of service between six months and one year.
- One month’s notice for Honduran employees with a length of service between one and two years.
- Two months’ notice for employees with more than two years of employment.
Severance Pay
Above all, employees in Honduras can only receive severance pay if they get terminated without just cause. Consequently, workers from Honduras can get it according to their length of service:
- Ten days of the employee’s regular pay rate if his length of service is between three and six months.
- Twenty days of payment for employees in Honduras with a length of service of between six months and one year.
- One month’s salary for every year of employment if their length of service is more than one year. In this case, the maximum severance pay is 25 months.
Finally, PEO services in Honduras indicate that employees cannot get severance pay if their termination has a “just cause”.
Probation Period
Indeed, an Employer of Record Company in Honduras uses a probationary period of 60 days for new employees.
Employee Leaves in Honduras
Paid Time Offs
According to employment laws in Honduras, employees deserve paid time off depending on employee’s seniority:
- Ten days of paid leave for employees in Honduras with up to one year of employment.
- Twelve days of paid leave for workers from Honduras with between one and two years of employment.
- Fifteen days of paid leave for Honduran employees with between two and three years of employment.
- Twenty days of paid leave for employees in Honduras with more than four year of employment.
Public Holidays
There are 11 national holidays throughout the year.
Vacation Holidays
There are 10 vacation holidays throughout the year.
Sick Days
In essence, employees in Honduras working for Employer of Record companies can get 26 weeks of paid sick leave. Moreover, they can extend it to 52 weeks after a three-day observation period.
Besides, workers from Honduras receive a sick day’s compensation of 66.00% of their average pay over the past three months.
Last, payroll outsourcing companies in Honduras indicate that employers and Social Security share the Sick Pay.
Paternity Leave
Indeed, Employer of Record in Honduras involves advising workers about their paternity leave. Hence, one piece of advice they can give is that employment laws in Honduras do not include provisions regarding paternity leave.
Paternal Leave
In essence, you will not find payroll outsourcing or other companies in Honduras giving parental leave. After all, it is not mandatory by law.
Other Leave
Besides the most common leaves, employees in Honduras can get the following additional leave types:
- Bereavement Leave: It is a three-day paid leave for workers from Honduras that lost an immediate family member.
- Weeding Leave: If employees in Honduras are getting married, they can get five days of paid leave to attend their wedding.
- Union and Judicial Leave: Any union’s executive committee member in Honduras can get six days of paid leave. In essence, he must use them to perform union duties. They can also get half a day to attend to a judicial summons.
Maternity Leave in Honduras
Undoubtedly, everyone in your Contractor Management Services Company in Honduras will hug you after knowing about your pregnancy. Besides, they will give you ten weeks of maternity leave. Above all, they will start four weeks before the estimated due date.
Similarly, Honduran employers and Social Security also share the maternity leave pay.
There are 70 leave throughout the year.
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