Honduras is a country in Central America bordered by Guatemala, El Salvador, Nicaragua, the Pacific Ocean, and the Gulf of Honduras. The country’s economy is mostly based on agriculture which accounts for 14% of its GDP. Honduras has extensive forests, marine, and mineral resources, and the landscape consists mainly of mountains, narrow plains, a large undeveloped lowland jungle, and the heavily populated Sula Valley.
Pregnant employees are entitled to a minimum of 42 days of leave before the due date and 42 days of leave after the due date. This leave is paid for jointly by the employer and social security. There are no provisions for paternity leave.
Employees are entitled to 26 weeks of paid sick leave, which can be extended to 52 weeks after 3 days of observation. Sick leave is paid for by the employer in the first 3 days, and from the 4th day IHSS will pay for 66% of the ceiling rate while the employer covers the difference between that and the employee’s salary.
There are 11 public holidays in Honduras, and employees are entitled to paid time off each year based on how long they have worked at their company:
Employees can also receive paid leave for bereavement, marriage, and civic duty.
The minimum wage in Honduras varies based on industry and company size, with an average of HNL 10,008.14 to HNL 13,346.47. The standard workweek is 44 hours with a maximum of 12 hours of overtime per week. Overtime work/pay is regulated by employment contracts and collective agreements, ranging from 137.5% to 200% of the regular pay.
Employers can terminate a contract for reasons related to business, personal, or workers misconduct. Termination requires written notice and explanation for the termination. If terminating for misconduct, the employer needs to give a warning and a chance for the employee to explain their actions. The employee can choose to take the employer to court for unlawful dismissals, and be due compensation or reinstatement if the employer cannot provide evidence of just cause.
The notice period in Honduras depends on the length of employment:
Employees who are terminated for unjust cause are entitled to severance depending on how long they worked at the company:
Employees in Honduras are entitled to both a 13th month and 14th month salary, each equal to 1 month of wages. One payment is made in July and the other in December.
★ 5% - Healthcare (IHSS)
★ 3.5% - Disability, Old Age, Death
★ 1.5% - Pension
★ 4% - Labor Coverage Insurance
★ 2.6% - Collective Capitalization Pillar
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It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.
Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.