Minimum Wage

General

The minimum wage varies based on the industry as well as the number of employees an employer has.  The lowest monthly minimum wage is 6,762.70 HNL for agriculture workers and the highest being 12,357.84 HNL for financial institutions, real estate, and business services. 

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.

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

All work exceeding standard working hours is to be paid as overtime and is regulated by employment contract/collective agreements. When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed. These maximums are 12 hours per week.

All overtime hours in excess of 44 hours a week are paid at an overtime compensation rate; this rate is 137.50% of the employees’ regular salary. Overtime hours performed on a rest day are compensated at 200.00% and 125.00% for additional hours worked during the night.

Working Week

Monday–Saturday

Leave

Paid Time Off

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. 

Public Holidays

There are 11 public holidays.

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.

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.

VISA

VISA

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%