Payroll and Benefits Guide Honduras
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
5.00%
|
Healthcare (IHSS)
|
|
3.50%
|
Disability, Old Age, Death (up to a maximum of 10,282.37 HNL)
|
|
1.50%
|
Pension Regimen de Aportaciones Privadas (RAP) Any company that has 10 or more employees must contribute to the RAP
|
|
4.00%
|
Labor coverage insurance
|
|
2.60%
|
Collective Capitalization pillar
|
| 16.60% |
Total Employment Cost |
| Employee Payroll Contributions | |
|
2.50%
|
Sickness and Maternity (up to a maximum of 9,849.70 HNL)
|
|
2.50%
|
Disability, Old Age, Death (up to a maximum of 10,282.37 HNL) |
|
1.50%
|
Pension Regimen de Aportaciones Privadas (RAP) Any company that has 10 or more employees must contribute to the RAP
|
|
1.60%
|
Collective Capitalization pillar
|
| 8.10% |
Total Employee Cost |
| Employee Income Tax | |
|
0.00%
|
up to 217,493.16 HNL |
|
15.00%
|
217,493.17 HNL to 331,638.50 HNL |
|
20.00%
|
331,638.51 HNL to 771,252.38 HNL |
| 25.00% | 771,252.38 HNL and above |
Employer taxes
Employee taxes
Minimum Wage
General
The minimum wage varies based on the industry as well as the number of employees an employer has.
- Agriculture, Forestry, Fishing, and Hunting:
- 1-10 workers: HNL 9,053.43 per month
- 11-50 workers: HNL 9,563.25 per month
- 51-150 workers: HNL 10,573.32 per month
- 151 or more workers: HNL 11,544.59 per month
- Manufacturing:
- 1-10 workers: HNL 12,140.70 per month
- 11-50 workers: HNL 12,937.94 per month
- 51-150 workers: HNL 15,395.21 per month
- 151 or more workers: HNL 17,557.35 per month
- Construction:
- 1-10 workers: HNL 12,539.68 per month
- 11-50 workers: HNL 12,937.94 per month
- 51-150 workers: HNL 15,395.21 per month
- 151 or more workers: HNL 17,557.35 per month
- Commerce and Construction Sector: HNL 17,557.35 per month for companies with 151 or more employees.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The payment of salaries is stipulated in the employment contract and may vary depending on the type of work carried out; the payroll cycle can be monthly, bi-monthly, weekly, daily, or hourly.
13th Salary
Full-time employees should receive both a 13th-month salary payment to be paid out as a Christmas bonus in December and a 14th-month salary payment paid in July. Each payment is equal to one month’s salary.
Authority Payments
|
Authority Payment |
Paid To |
Due Date |
Method |
|
Social security |
Instituto Hondureño de Seguro Social |
Before the14th of each month |
Overseas transfer if the company doesn’t have a local bank account / Direct debit is possible if there is a local bank account |
|
Salary tax |
SAR |
Every 12th of each month |
Overseas transfer if the company doesn’t have a local bank account / Direct debit is possible if there is a local bank account |
Working Hours
General
In Honduras, the standard working week consists of 44 hours, 8 hours per day, six days a week. Managerial and Supervisory roles may warrant an extended working day of 12 hours. The working hours of minors may also vary depending on the employees’ age.
Overtime
The maximum legal working hours depend on the shift classification (Labour Code Article 321):
| Shift Type | Time Period | Maximum Daily Limit | Maximum Weekly Limit | Pay Calculation Basis |
| Day Shift (Diurna) | 5:00 AM to 7:00 PM | 8 hours | 44 hours | Paid for 48 hours |
| Night Shift (Nocturna) | 7:00 PM to 5:00 AM | 6 hours | 36 hours | Paid for 48 hours |
| Mixed Shift (Mixta) | Includes both day and night hours (night portion <span class="math-inline" data-math="$< 3$ hours) | 7 hours | 42 hours | Paid for 48 hours |
-
Overtime Threshold: Overtime (trabajo suplementario or horas extras) is any hour worked beyond the maximum daily or weekly limits for the respective shift type.
-
Daily Maximum: Total working time, including overtime, generally cannot exceed 12 hours daily.
-
Weekly Overtime Cap: Overtime is limited to a maximum of 12 hours per week (some sources cite 9 hours).
-
Exemptions: Managers and supervisors are typically exempt from the standard working hours and overtime provisions.
Mandatory Overtime Pay Rates (Labour Code Article 330)
Overtime compensation is mandatory and is calculated as a tiered minimum premium percentage of the employee’s regular hourly wage, based on the time of day the overtime is worked.
| Overtime Condition | Minimum Premium Rate (Statutory) | Total Pay Rate | Notes |
| Daytime Overtime (5:00 AM to 7:00 PM) | +25% of the ordinary day-shift salary. | 125% | This applies when overtime is performed during the legal day shift hours. |
| Nighttime Overtime (7:00 PM to 5:00 AM) | +50% of the ordinary day-shift salary. | 150% | This premium is mandated for overtime performed during the night period. |
| Night Shift Extension (Overtime prolonging a normal night shift) | +75% of the ordinary night-shift salary. | 175% | Applies when overtime is worked immediately following a normal night shift. |
| Weekly Rest Day & Public Holidays | +100% of the regular hourly rate. | 200% | All hours worked on a mandatory weekly rest day (usually Sunday) or an official public holiday are paid at double the regular rate. |
Note on Premiums: The law requires any hours worked on a designated weekly rest day or public holiday to be compensated at the 200% rate, regardless of how many ordinary hours the employee has worked during the week.6
Leave
Annual Leave (vacation)
The annual leave entitlement is dependent on the employees’ seniority:
- Up to 1 year of employment- 10 days of paid leave
- 1-2 years of employment- 12 days of paid leave
- 2-3 years of employment- 15 days of paid leave
- 4+ years of employment- 20 days of paid leave
Vacation leave must be paid to an employee three days before the beginning of the annual leave.
PTO carryover
In Honduras, vacation is meant to be taken when due.
- Note: SGF Global does not allow carryover
Public Holidays
Public holidays falling on the weekend are usually lost.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 2 April 2026 | Thursday | Maundy Thursday | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 4 April 2026 | Saturday | Holy Saturday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 15 September 2026 | Tuesday | Independence Day | Standard holiday |
| 5 October 2026 | Monday | Francisco Morazán’s Day / Day of the Race / Army Day (Semana Morazánica) | Standard holiday |
| 6 October 2026 | Tuesday | Francisco Morazán’s Day / Day of the Race / Army Day (Semana Morazánica) | Standard holiday |
| 7 October 2026 | Wednesday | Francisco Morazán’s Day / Day of the Race / Army Day (Semana Morazánica) | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
An employee is entitled to 26 weeks of paid sick leave, extended to 52 weeks after a three-day observation period. Sick leave is compensated at 66.00% of the employee’s average pay over the past three months.
The payment of the Sick Pay is shared equally between the employer and social security.
Maternity Leave
Maternity leave pay is also shared by the employer and social security. Mothers can take up to 10 weeks at full pay, 4 weeks before birth, and 6 weeks after birth. There are no laws for paternity or shared parental leave.
Paternity Leave
There are no provisions in the law regarding paternity leave.
Parental Leave
There are no provisions in the law regarding parental leave.
Other Leave
In Honduras, employees are entitled to up to 3 consecutive days of paid leave for the bereavement of an immediate family member.
Employees are also entitled to up to six days of paid leave to carry out their union duties and half a day of leave to attend to a judicial summons.
Employees are entitled to up to 5 consecutive days of paid leave after getting married.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Employers can terminate a fix term contract by giving the following reasons – business, personal, or workers misconduct. It requires notice and a written explanation for the termination. If the cause is misconduct, a warning needs to be given, and the employee gets a chance to explain actions. The employee holds the right to take an employer to court in the case of unlawful dismissal; the employer must then evidence that the termination was fair. If the employer fails to provide evidence of a lawful dismissal, the employee may be entitled to compensation. If termination is deemed wrongful and the employee is reinstated, the employer is not required to pay termination benefits.
Notice Period
The notice period is determined by the length of employment:
- Less than 3 months – 24-hour notice
- More than 3 months but less than 6 – 1 weeks’ notice
- More than 6 months but less than 1 year – 2 weeks;’ notice
- More than 1 year but less than 2 years – 1 months’ notice
- More than 2 years – 2 months’ notice
Severance Pay
Employees dismissed for unjust cause are entitled to severance pay depending on the employees’ years in service.
- Employees who have completed 3-6 months of employment are entitled to 10 days of pay at the employees’ regular pay rate.
- Employees who have worked for between 6 months and one year are entitled to 20 days of payment.
Employees with over one year of service are entitled to one month’s salary for every year of employment, capped at 25 months. - In the case of a “Just cause” dismissal, no severance pay is required.
Probation Period
The probation period in Honduras is generally 60 days.
Immigration
Honduras’s immigration laws provide several options for foreign nationals seeking to travel to the country for business or work.
Visa-exempt nationals can travel to Honduras without an entry visa and remain for periods of up to 30 days. Depending on the country of citizenship, visa nationals entering Honduras for business visits must obtain either a Consular Visa (Visa Consular) or a Consulted Visa (Visa Consultada). Both types of visas are requested directly at a Honduran consular post; however, the Ministry of Foreign Affairs in Honduras must issue its authorization before the Honduran consular post can issue a Consulted Visa.
Both visa-exempt and visa nationals can apply to extend their business stay in Honduras for up to 90 additional days for a total of 120 consecutive days; however, foreign nationals who make multiple visits to Honduras for separate business visits are allowed a maximum cumulative stay of 180 days within 365 days.
Generally, foreign nationals can perform work activities without work authorization if their intended stay is less than 30 days and they do not receive remuneration or payments from a Honduran source. Foreign nationals who engage in remunerated work activities in Honduras must obtain a Special Stay Permit with Work Contract. The Special Stay Permit is valid for a minimum of one year, and at the authorities’ discretion, may be issued for a maximum of five years. After five years of holding a Special Stay Permit, the foreign national must apply for temporary residence.
VAT
General
The standard rate of sales tax in Honduras is 15.00%
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Payroll and Benefits Guide
in Honduras
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 2 April 2026 | Thursday | Maundy Thursday | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 4 April 2026 | Saturday | Holy Saturday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 15 September 2026 | Tuesday | Independence Day | Standard holiday |
| 5 October 2026 | Monday | Francisco Morazán’s Day / Day of the Race / Army Day (Semana Morazánica) | Standard holiday |
| 6 October 2026 | Tuesday | Francisco Morazán’s Day / Day of the Race / Army Day (Semana Morazánica) | Standard holiday |
| 7 October 2026 | Wednesday | Francisco Morazán’s Day / Day of the Race / Army Day (Semana Morazánica) | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Good day, the Collective Capitalization pillar is not 2.5 for the employee and 3.5 for the worker?
What are the requirements of the employer if the employee quits?
The worker is required to hand in a resignation letter to the employer including the effective end date. A final document should be shared with the employee including the last payment, all the accruals, vacations, 13th salary, etc.