Honduras has a population of over 9 million people with Spanish as the official language and a number of indigenous languages spoken. There are many challenges to operating a business in Honduras, so it is important to understand the payroll, labor, and compliance requirements before starting a business there.
Payroll and Tax Considerations
- Minimum wage varies depending on the size of the company and the industry. The minimum monthly wage varies from HNL 6,762 – 12,357
- Overtime is paid at 125% for daytime hours, 175% for night hours, and 200% for holidays
- Severance payments vary from 10 – 30 days wages
- Personal income tax is progressive and varies from 0-25% There is a flat tax rate of 10% on income from capital assets
HR and Statutory Requirements
- Employees are entitled to paid annual leave after working 12 months for the same employer. Paid leave starts 10 days for 1 year of service and goes up to 20 days after 4 years of service
- Paid sick leave is earned at a rate of 2 days per month after the first 12 months, up to 120 sick days
- Females receive fully paid maternity leave for up to 10 weeks (70 days) upon proof of pregnancy with medical certificate
- There are no provisions for paternity leave
- There are 2 types of pension programs: social insurance and mandatory individual account
- The retirement age to qualify for old-age pension is 65 for men and 60 for women. They must have made at least 180 pension contributions
Holidays in Honduras
- January 1 – New Year’s Day
- April 14 – Maundy Thursday
- April 15 – Good Friday
- April 16 – Holy Saturday
- May 1 – Labor Day / May Day
- September 15 – Independence Day
- October 3 – Morazan’s Day
- October 12 – Columbus Day
- October 21 – Army Day
- December 25 – Christmas Day
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