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As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.
Hiring in Honduras
Honduras is a small country in Central America, bordering the Caribbean Sea and the Pacific Ocean. When negotiating terms of an employment contract and offer letter with an employee in Honduras, it may be useful to keep the following in mind.
Employment contracts in Honduras
The 13th- and 14th-month bonus are a mandatory annual expense that should be factored into your budget. In your offer letter, be sure to clearly state whether the annual salary amount offered is inclusive of the 13th- and/or 14th-month bonus.
In Honduras, it is legally required to put the employment contract in writing, and should include the employee’s compensation, benefits, and termination requirements. Always state the salary and any compensation amounts in Honduran lempira rather than another currency.
Working hours in Honduras
Working hours generally cannot exceed 8 hours per day or a total of 44 hours per week. Night shift workers should not work more than a 36-hour week, and workers who perform a mixed day-night shift should not exceed 42 hours per week.
Holidays in Honduras
Honduras celebrates the following public holidays:
- New Years
- The Holy Week
- Day of the Americas (Pan-Americanism)
- Labor Day
- Independence Day
- Soldiers Day
- Columbus Day
- Armed Forces Day
- Christmas
Vacation days in Honduras
Vacation entitlement is a legally mandated provision in Honduras. The minimum vacation period is contingent upon an employee’s length of employment:
- After 1 year of employment: 10 days
- 2 years of employment: 12 days
- 3 years of employment: 15 days
- 4 years of employment: 20 days
Honduras sick leave
Employees in Honduras are generally entitled to sick leave pay of 66% of their earnings, averaged over the prior 3 months. The sick pay starts after a 3-day waiting period and continues for up to 26 weeks. In some cases, it may be extended to 52 weeks.
Employees who are not covered by social insurance are generally entitled to have their employers pay for their sick leave.
Maternity/paternity leave in Honduras
Pregnant workers are entitled to 6 weeks of maternity leave before the birth and 6 weeks after the birth and should be compensated at a rate of 66% of their wages, averaged over the prior 3 months. Expecting workers who are not covered by social insurance can expect their employers to provide maternity leave pay.
There is no statutory paternity leave in Honduras.
Health insurance in Honduras
The health insurance system in Honduras guarantees individuals access to healthcare benefits and health services. The service is funded through contributions at the following monthly wage rate:
- Employees: 2.5%
- Employers: 5% of the employee’s monthly wage
- Government: 0.5% of the employee’s monthly wage
Honduras supplementary benefits
Generally, we recommend budgeting 40% for benefits on top of the gross salary to calculate the total employee cost including benefits in Honduras.
Bonuses
Employees in Honduras are entitled to a 13th- and 14th-month bonus.
Termination/severance in Honduras
If you find yourself in the unfortunate situation of having to end an employment relationship in Honduras, bear in mind that the required notice of termination ranges from 24 hours to 2 months, depending on the length of service.
Accrued bonuses, vacation, severance and termination notices must be paid immediately when dismissing the employee. Severance payments can range anywhere from 10 days severance for 3 to 6 months of employment, all the way up to a payout of 1 month per year worked.
Paying taxes in Honduras
Employers are expected to contribute 3.5% of their workers’ monthly wages to Social Security and 4% to a fund which provides unemployment benefits.
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