Hire and pay employees in

Honduras, hassle-free

Hire and pay employees in Honduras, hassle-free

With Deel, your business can easily hire employees in Honduras. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Honduras is 3 days with Deel.


Honduran lempira - HNL (salaries in USD)



Official Language


Payroll Cycle


Onboard, pay and manage employees in Honduras with Deel.

Usually, to hire in Honduras, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Honduras quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for Honduras
built right in

Deel allows you to provide localized benefits for employees in Honduras within minutes. All in one manageable online dashboard.

  • Retirement Pension
  • Worker Compensation (Professional Training)
  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in Honduras

Navigate the tabs below to learn everything you need to know about hiring an employee in Honduras

Minimum Wage Requirements

The minimum wage in Honduras is complex. The minimum wage is dependent on the number of employees at a company and the type of work carried out. For Deel, the most relevant size and activity will be HNL 10,008.14-13,346.47 per month.

Individual Income Tax

The individual income tax ranges from 0% to 25%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Gross Annual Income Tax Rate (%)
Up to HNL - 172,117.89 0%
Up to HNL - 262,449.27 15%
Up to HNL - 610,347.16 20%
Over HNL - 610,347.16 25%

Payroll Cost

The employer cost is generally estimated at 9.87% of the employee salary.

  • Public Health Insurance (Disability, Retirement, Death) - 2%
  • Public Health Insurance (Sickness, Maternity) - 5.0%
  • Public Health Insurance (Professional Risk) - 0.20%
  • Housing Fund - 1.50%
  • Severance Provision - 4.0%
  • Worker Compensation (Professional Training) - 1.17%

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, from Monday to Friday, and 4 hours on Saturday, accumulating 44 hours per week.

Overtime payment is mandatory and is not included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 16 hours of overtime a week. For additional hours, employees are paid:

  • 125% of the hourly rate for overtime undertaken between 5:00-19:00
  • 175% of the hourly rate for overtime undertaken between 19:00-5:00
  • 150% of the hourly rate for overtime undertaken mixed between the above hours
  • 200% of the hourly rate for overtime undertaken on weekends and public holidays.

Maternity Leave

Employees are entitled to 10 weeks of paid leave. 4 weeks must be taken before the child's birth. The remaining 6 weeks must be taken after. The employee will receive 100% of the salary during this period, Social Security will be responsible for 66% and the employer will pay 34%.

Paternity Leave

There is no paternity leave currently required by law.

Parental Leave

In Honduras, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Sick Leave

Employees are entitled to paid sick leave for up to 26 weeks. The leave is paid at 66% of an employee's average salary over the last 3 months. The payment is split between the employee and employer. After an additional 3 day observation period employees can add additional 26 weeks if required.

Period Pay Payer
0 - 3 days 0% N/A
4 - 364 days 100% Employer 35% Social Security 65%

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Honduras can be complex. There is no at-will termination in Honduras for employers and termination must be done for just cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • Probation period
    • Objective grounds
    • Disciplinary dismissal
    • Performance due to unsuitability for the job
  • By the expiration of the contract

Notice Period

The minimum notice period is 1 day and will be increased according to the length of the employment.

  • 1 day if the length of service is less than 3 months
  • 1 week if the length of service is less than 6 months
  • 2 weeks if the length of service is less than 1 year
  • 1 month if the length of service is less than 2 years
  • 2 months if the length of service is over 2 years

Severance for Employees

In Honduras, all terminated employees for unjust cause are entitled to severance pay. Severance pay varies depending on the length of service as follows:

Length of Service Severance
Between 3 to 6 months 10 days
Between 7 to 12 months 20 days
More than 12 months 1 month per year up to 15 months(years)


To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Paid Time Off

Full-time employees are entitled to 10 working days of paid time off (PTO) a year. PTO and accrual rate varies depending on the length of services. During the first year of employment, an employee is not allowed to take more than 10 days.

Years of Service Days Leave (Working Days) Accrual Rate (Working Days)
qUp to 1 years 10 0.833
1 -2 years 12 1.000
2-3 years 15 1.250
after 4 years 20 1.666


Part-time employees are entitled to one day per month.

Public Holidays

Honduras celebrates 11 national holidays.

National public holidays include:

  • New Years Day
  • Maundy Thursday
  • Good Friday
  • Easter Saturday
  • Americas' Day Holiday
  • Labor Day
  • Independence Day
  • Francisco Moranzan's Birthday
  • Day of the Race
  • Army Day
  • Christmas Day


Onboarding takes 3 business days.

The employee will go through a medical exam during the first month of employment.

Employment Contract Details

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

Probation periods are mandatory and will last 60 days.

Download the complete guide to hiring in Honduras

Simply fill out your details below to gain access to our complete guide to hiring in Honduras.

Hiring in Honduras, hassle-free

With Deel, your business can easily hire employees in Honduras with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Honduras and 150+ countries.

Group (8)

599 USD

Management fee

Group (9)


Estimate Employer Cost

*of employee salary

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