Located in Central America, Honduras offers a unique blend of historical and natural wonders, from the ancient Mayan ruins of Copán to the pristine waters of the Bay Islands and the lush rainforests of Pico Bonito National Park.
Honduras’ young and motivated workforce, focus on education, and growing tech sector make it an appealing choice for employers looking to tap into international talent.
Key takeaways:
- Honduras ranks highly for English proficiency in Latin America.
- The labor code in Honduras includes flexible contracts, comprehensive leave policies, and a structured approach to payroll contributions.
- The Honduran government prioritizes education, with a significant cooperation agreement with China to improve school infrastructure.
Advantages of Hiring in Honduras
Honduras is recognized as one of the most English-proficient countries in Latin America, ranking 31st out of 113 countries on the EF English Proficiency Index.
The Honduran government places a high priority on creating an educated workforce. The country recently entered into a cooperation agreement with China valued at around $276 million to focus on improving the infrastructure of schools throughout the country.
Here are some quick facts about Honduras:
- Languages: Spanish, English
- Currency: Honduran Lempira (HNL)
- Capital City: Tegucigalpa
- Population: 10 million
- Cost of Living Rank: 116th
Major Investments in Honduras Boost Education and Digital Access
Several major companies are making significant investments to boost Honduras’s economy.
For instance, Fundación Terra plans to invest $24.5 million over the next five years in programs that will enhance secondary education, improve digital access, promote entrepreneurship, and support environmental conservation in Honduras, Guatemala, and El Salvador.
Additionally, Millicom, a telecommunications company, will invest $700 million to expand and maintain its mobile and broadband networks in Honduras over the next two years.
These initiatives showcase a strengthened commitment from industry leaders to enhance infrastructure and expand full-time remote work opportunities for Hondurans, positioning the country as an attractive hub for companies seeking to build a global workforce.
Top remote jobs in Honduras include:
- Full Stack Engineer
- Backend Developer
- Digital Marketing
- Project Manager
- Administrative Assistant
- Graphic Designer
Employment Laws: Hiring Compliantly in Honduras
Employment Contracts
There are three primary types of employment contracts in Honduras:
- Indefinite-Term Contracts: Long-term contracts are the most prevalent type and don’t have a set end date.
- Fixed-Term Contracts: These are contracts for temporary projects with a predetermined duration.
- Verbal Agreements: These are common for domestic workers and short-term jobs lasting less than 60 days.
Working Hours & Pay
The standard workweek is 44 hours and can not exceed eight hours per day.
As of 2024, the minimum wage in Honduras is HNL 13,156.53 per month. However, it can vary by industry and company size.
Probation Periods
Under Honduran labor law, the maximum duration for a probationary period is 60 days.
Employer Taxes
Employer taxes are approximately 16.6% of employees’ gross salaries. This includes:
- 5%: Honduran Social Security Institute (IHSS)
- 3.5%: Disability, Old Age, and Death
- 1.5%: Pensión Régimen de Aportaciones Privadas (RAP)
- 4%: Labor Insurance Coverage
- 2.6%: Collective Capitalization Pillar
Termination Process & Severance Pay
The Honduran Labor Code outlines specific notice periods employers must follow when terminating indefinite employment contracts. The required notice period varies based on how long the employee has been with the company.
- Less than 3 months: 24 hours’ notice
- 3-6 months: 1 week’s notice
- 6-12 months: 2 weeks’ notice
- 1-2 years: 1 month’s notice
- 2 years+: 2 months’ notice
Additionally, if an employee is dismissed without cause, they are entitled to severance pay, determined by their length of service.
The amount can range from the equivalent of 10 days’ pay to as much as 25 months’ pay, depending on the length of employment.
Paid Leave Laws in Honduras
Vacation and Holiday
In Honduras, employees are entitled to between 10 and 20 days of paid time off annually, depending on their length of service.
Employees also receive paid leave for several public holidays, including:
- Holy Thursday & Holy Friday
- America’s Day
- Labor Day
- Soldier’s Day
- Christmas Day
Sick Leave
Employees are eligible for paid sick leave up to 26 weeks, which can also be extended to 52 weeks for severe or ongoing health issues.
The IHSS covers 66% of the employee’s salary during their sick leave.
Maternity Leave
In Honduras, female employees are entitled to 10 weeks of paid maternity leave. Employees receive their full salary from the IHSS during maternity leave.
Paternity Leave
There is no paid paternity leave for new fathers in Honduras.
Why Remote Workers Love Honduras
Honduras has become a popular choice for digital nomads due to its vibrant community of freelancers and remote workers.
Cities like Tegucigalpa and San Pedro Sula host various coworking spaces where remote professionals can connect and collaborate. Notable hubs such as Café Paradiso and The Coffee Shop help build community among digital nomads.
While Honduras does not offer a digital nomad visa, remote workers can apply for the Tourist Visa, valid for up to 90 days.
How to Pay Remote Workers in Honduras
Employers can use numerous payment methods to pay remote workers in Honduras.
However, there are a few factors to consider when selecting a payment method.
- Bank wire transfers are a reliable way to deposit payments and offer security and consistency directly. However, they can be slow and may incur transaction fees.
- Cryptocurrency is gaining popularity but has yet to be universally recognized as legal tender, and regulations vary significantly across countries.
- Platforms like PayPal and Wise are user-friendly and widely accepted, providing added security and buyer protection. However, they may come with transfer fees and restrictions on maximum transfer amounts.
To simplify the payment process, many companies partner with an Employer of Record (EOR) to handle payroll responsibilities and guarantee timely payments in the employees’ preferred currencies.
Hire in Honduras with RemoFirst
As an EOR, RemoFirst helps companies easily employ remote talent in 180+ countries, including Honduras and other LATAM countries. This includes handling payroll and ensuring compliance with local laws, allowing companies to onboard international employees quickly and efficiently.
Book a demo to learn more about how we can help with your global hiring needs.
