Payroll and Benefits Guide - Honduras

Honduras
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Currency

Lemplra
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Capital

Teguclgalpa
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Employer Taxes

16.60%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

The ancestors of the Mayans lived in Honduras. The Copán Mayan ruins in western Honduras are a well-liked tourist destination.

The Bay Islands are well known for having gorgeous coral reefs, attracting scuba divers from all over the world.

The Valle De Angeles, a place in Honduras, houses a set of ancient rock spheres whose origin is still a mystery.

Despite being in the Ring of Fire, Honduras has no active volcanoes.

It is the home to many indigenous tribes like the Lenca and the Ch’orti’.

The country was once called “Banana Republic”.

Honduras

Contributions

Employee Payroll Tax

Contribution TypeRate
Sickness and Maternity2.50%
Disability, Old Age, Death2.50%
Collective Capitalization pillar1.60%
Pension Regimen de Aportaciones Privadas1.50%

Employer Payroll Tax

Contribution TypeRate
Healthcare (IHSS)5.00%
Labor coverage insurance4.00%
Disability, Old Age, Death3.50%
Collective Capitalization pillar2.60%
Pension Regimen de Aportaciones Privadas1.50%

Payroll

Payroll Cycle

The employment contract outlines the terms for salary payment, which may change based on the type of work performed. Payroll cycles can be monthly, bimonthly, weekly, daily, or hourly.

13th Salary

Both a 13th-month salary payment to be given out as a Christmas bonus in December and a 14th-month salary payment to be given out in July should be given to full-time workers. The value of each installment is one month’s worth of pay.

Work Hours and Week

The typical workweek in Honduras is 44 hours long, or 8 hours per day, six days a week. Management and supervision may require a 12-hour workday. Depending on the employees’ ages, the working hours of minors may also change.

Overtime

There are limits on the amount of hours an employee may work when requested to work overtime or on a holiday are 12 hours.

All overtime worked in excess of 44 hours per week is compensated at a rate equal to 137.50% of the employee’s base pay. The rate of pay for extra hours done on a rest day is 200.00%, while the rate for extra hours worked at night is 125.00%.

Honduras

Leave

Paid Time Off

The amount of paid leave an employee is given yearly to depends on their seniority:

  • 10 days off after one year of work
  • 12 days off from one to two years of work
  • 15 days off from two to three years of work
  • 20 days off after four years of work

Public Holidays

There are 11 public holidays in Honduras.

Sick Days

A worker is granted a total of 26 weeks of paid sick leave, which is then extended to 52 weeks following a three-day observation period. Sick leave benefits equal 66.00% of the employee’s three-month rolling average pay.

Both the employer and social security are equally responsible for paying the sick pay.

Maternity Leave

Additionally, maternity leave is paid equally by the employer and social security. 4 weeks prior to childbirth and 6 weeks following it, mothers are permitted to take up to 10 weeks at full pay.

Paternity Leave

Paternity leave is not required to be provided by law.

Parental Leave

Parental leave is also not required to be provided by law.

Other Leave(s)

In the case of death of a family member, three days of paid leave are given.

When an employee is married, they may request leave of up to five days.

If an employee is a member of a labor union, they may take up to six days of paid leave to perform union duties.

Termination

Termination Process

A fixed-term contract may be terminated by the employer for any of the following reasons: business, personal, or employee misconduct. It necessitates notice and a justification for the termination in writing. If misconduct was the root of the problem, the employee must be warned and given the opportunity to defend their actions. In the event of a wrongful termination, an employee has the right to sue an employer in court; the company must then provide proof that the termination was justifiable. The employee may be entitled to compensation or to bre reinstated in their job if the employer doesn’t show proof of a legal dismissal.

Notice Period

  • The amount of notice is based on the length of employment as follows:

    • Those with employment of up to three months are given 24-hour notice.
    • Those with employment of three to six months are given at least a week’s notice.
    • Those with employment of six months to a year are given at least two weeks’ notice.
    • Those with employment of one to two years are given at least a month’s notice.
    • Those with employment of more than two years are given at least two months’ notice.

Severance Pay

Severance pay at their usual rates may be due to employees who were fired without cause, based on the length of their service.

  • Those with employment of three to six months are given 10 days of pay.
  • Those with employment of six months to a year are given 20 days of pay.
  • Those with employment of more than a year are given a month of pay for every year of work with a limit of 25 months.

If there is a valid cause, severance will not be given.

Probation Period

Probation Period

60 days is the usual length of probation periods in Honduras.

Immigration

Honduras’ legislation offers many options for foreigners wanting to visit the country for work.

Nationals from countries without entrance visa requirements are permitted to enter Honduras and stay there for up to 30 days. Visa nationals entering Honduras for business purposes must get either a Consular Visa (Visa Consular) or a Consulted Visa (Visa Consultada), depending on their country of citizenship.

Both types of visas are applied for immediately at a Honduran consular office; however, a Consulted Visa cannot be issued until the Honduran Ministry of Foreign Affairs has given its approval.

Both visa-exempt and visa-required nationals may apply to extend their business stay in Honduras for up to 90 extra days for a total of 120 straight days. However, visitors from abroad who come to Honduras on multiple occasions for various business purposes are only permitted a maximum cumulative stay of 180 days throughout the course of a year.

If a foreign national’s anticipated stay is shorter than 30 days and they are not receiving compensation or payments from a Honduran source, they can often engage in work activities without a work permit. A Special Stay Permit with Work Contract is required for foreign nationals who perform paid labor in Honduras. The Special Stay Permit is good for at least one year and, at the authorities’ exclusive discretion, up to five years. The foreign national must submit an application for temporary residency after five years of having a Special Stay Permit.

VAT

The commonly used sales tax rate in Honduras is 15.00%