Honduras
Want to learn how to hire remotely in Honduras, without paying $$$ in fees and waiting months to onboard your talent? You’re in the right place. On this page, we’ll teach you what you need to know to make remote hires—the right way—in Honduras.
Country snapshot
CURRENCY
Lempira (HNL)
EMPLOYER TAXES
16.60%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Spanish
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
Little bit confused about hiring in Honduras? Like anywhere else, it’s got different labor laws than you’re probably used to. Which makes things complex. But it doesn’t need to feel overwhelming. You really have two choices: Hiring people as contractors, or hiring them as employees.
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Honduras than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Honduras.
Employer tax
Employer Contributions
- 16.60%
Paid Time Off (PTO)
Paid leave depends on the length of service completed:
- Up to 1 year of employment- 10 days
- 1-2 years of employment- 12 days
- 2-3 years of employment- 15 days
- 4+ years of employment- 20 days
In addition to the leave, the employee is entitled to vacation pay, which must be paid out at least 3 days before the leave is taken.
Public Holidays
There are 11 public holidays.
Sick Days
- Sick leave starts from the third day of sickness.
- Employees are entitled to up to 26 weeks of sick leave per year and can be extended up to 52 weeks.
- Pay is 66% of the average of the previous 3 months or 100% if the employee is hospitalized and has no dependents.
- Pay is split equally between the employer and social security.
Maternity Leave
Mothers are entitled to 10 weeks of 100% paid leave, with salary partially covered by the employer and the IHSS. 4 weeks of leave should be taken before delivery and 6 weeks should be taken after.
Paternity Leave
There are no statutory laws for paternity leave.
Parental Leave
There are no statutory laws for parental leave.
Other Leave
None.
Marriage Leave
None.
Bereavement Leave
None.
Termination Process
Termination procedure depends on if it is a case of dismissal with just cause or wrongful dismissal.
Dismissal with just cause is effective from the moment the employer notifies the employee; however, the employee does have the right to take the employer to court and require they provide evidence to prove their dismissal was fair. If the employer cannot prove dismissal with cause, the employee is entitled to compensation for damages and losses and accrued unpaid wages. The employee also has the right to file a claim against the employer and request reinstatement.
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
For employees who were dismissed for just cause, there is no severance pay entitlement.
For employees who were dismissed for unjust cause or dismissed indirectly (i.e. failure on the part of the employee to pay wages on time) are entitled to severance pay:
- 3-6 months of employment- 10 days of wages
- 6-1 year of employment- 20 days of wages
- 1 or more years- 1 months’ salary for every year of employment, capped at 25 months.
Probation Period
None.
Working Hours
A full-time work week is 44 hours or hours a day. In addition, the maximum number of days in a workweek is 6.
Overtime
Overtime pay is paid at the rate of 137.5% of the regular pay.
For work on a rest day, the pay rate is 200% of the regular pay.
For night work, the pay rate is 125% of the regular pay.
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