Honduras is a beautiful country filled with plenty of skilled talent that’s ready to come and work for your company. However, in order to attract and retain those talented candidates, there are 2 very important factors you should consider — compensation and benefits.
Companies need to either meet or exceed the minimum requirements and create a Honduras benefits management plan that provides both guaranteed and additional benefits to all employees.
Honduras compensation laws
The country’s minimum wage depends on the industry and the number of employees you have. For example, as of 2021, for an agricultural employee working for a company with 1 to 10 employees, the minimum monthly wage is HNL 7,408.00, while an employee working in manufacturing for a company of the same size, that rate elevates to HNL 9,934.10. A Collective Bargaining Agreement (CBA) or trade union may have separate regulations and minimums, so you should always check to see if employees are covered under any of these agreements.
Another Honduras compensation law relates to benefits. Companies must give employees a 13th- and 14th-month bonus.
Guaranteed benefits in Honduras
Companies in Honduras must give employees the guaranteed benefits outlined in the country’s employment laws. The amount of vacation days depends on how long the employee has worked for a company. After the first year of employment, employees are entitled to 10 days of paid vacation and up to 20 days after 4 years.
Pregnant employees typically receive 6 weeks of maternity leave before giving birth and 6 weeks after. During this time, they should receive 66% of their wages, averaged over the previous 3 months.
Honduras benefits management
A big part of dispersing a Honduras benefits management plan is determining supplemental benefits. For example, while you must offer the statutory minimum for vacation time, many employees will negotiate additional time at the start of an employment agreement based on what they received from their previous employer. In general, you should budget about 40% for benefits on top of an employee’s gross salary.
Restrictions for benefits and compensation
Traditionally, companies expanding to a new country have to set up a subsidiary before hiring employees and giving out compensation and benefits.
G-P offers an alternative. Instead of spending weeks or months trying to incorporate, we can help you start working in a few days thanks to our Employer of Record (EOR) model.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.