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Country hiring guide

Hiring in Honduras 🇭🇳

Young workforce; maquila manufacturing and agriculture; growing nearshore services. Employer on-costs run ~12-16% (plus 13th/14th accruals) on top of gross salary. Here is what to know before your first Honduras hire.

Calculate a Honduras hire →
OverviewFacts & statsEmployer costsLeaveTermination
Capital cityTegucigalpa
CurrencyHonduran lempira (HNL)
LanguagesSpanish (official); English on Bay Islands
Population~10.5 million
Payroll frequencyMonthly; 13th (aguinaldo, Dec) & 14th (Jun)
VAT standard rate15% (ISV)
Employer burden*~12-16% (plus 13th/14th accruals) of gross
TGTC flat EOR fee$699/mo · Tier C
Overview

Employing in Honduras

Employment in Honduras runs under its national labour code, which sets the floor for wages, working hours, leave, and notice. Here are the essentials before you make an offer.

Minimum wage

  • L11,972-18,036/month by sector (2025)*
  • Varies by industry, firm size

Payroll cycle & extra pay

  • Monthly pay
  • Aguinaldo (Dec) + 14th (Jun)

Public holidays

  • ~11 public holidays*
  • Paid days off

Onboarding & probation

  • Probation up to 60 days*
  • Either party may terminate
Employer costs

What you pay on top of salary

Employer on-costs in Honduras run ~12-16% (plus 13th/14th accruals) of gross salary. Employer pays IHSS ~7%, RAP 2%, INFOP 1%, plus occupational risk.

Employer contribution*Rate
IHSS (health/pension)7%*
RAP (housing/pension)2%*
INFOP (training)1%
Occupational risk0.2-5%*

Passed through at cost

These statutory costs are paid at cost on top of TGTC's flat $699/mo fee, so you always see the real employer cost, not a marked-up percentage.

Employee-side taxes

Employees pay their own income tax and social-security share, withheld at source. Under an EOR, TGTC runs that payroll withholding for you.

Types of leave

Statutory leave in Honduras

Annual leave

  • 10 days after one year
  • Rises to 20 with tenure

Maternity & parental leave

  • 10 weeks (4 pre / 6 post)
  • IHSS-funded*

Sick leave

  • IHSS sickness benefit*
  • After qualifying contributions*

Other leave

  • Paid public holidays
  • Bereavement leave*
Employment termination

Ending employment in Honduras

Notice

  • 24 hours (<3 months) to 2 months
  • Scales with tenure

Severance

  • Cesantia: 1 month per year
  • Capped at 25 months

Probation

  • Up to 60 days*
  • No severance during probation*

Contractor risk

  • Misclassification reclassifies as employee
  • Back benefits owed

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Hire in Honduras without setting up an entity

TGTC employs your hire in Honduras on a compliant local contract, runs payroll and benefits, and passes statutory costs through at cost. One invoice, flat $699 per month.

Get a Honduras quote