Employer of Record Honduras
Hire staff and expand your business in Honduras with our fully-managed EOR Service
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Unrivalled Employer of Record Service in Honduras designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Honduras. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
Employer of Record in Honduras
A Brief Guide to Honduras
Honduras, located in Central America, offers a vibrant business landscape for entrepreneurs looking to expand their operations overseas. With its strategic position, rich cultural heritage, and natural beauty, Honduras presents exciting opportunities for growth and investment.
102,500 square kilometers
Honduran Lempira (HNL)
Tegucigalpa, San Pedro Sula, La Ceiba, and Choloma
$25 billion USD
Agriculture, manufacturing, construction, and tourism
Business Culture in Honduras
Hondurans values personal relationships and strong networks, making it crucial to establish connections and build trust with local partners and colleagues. Business etiquette in Honduras is generally formal, with punctuality being important. It is customary to greet individuals with a firm handshake and to address them using formal titles unless given permission to do otherwise. Building a rapport and fostering open communication is key to successful business interactions.
Payroll and Taxes
Payroll and Taxes in Honduras
In Honduras it is a mandatory requirement to pay a 13th and 14th month salary, with the 13th being paid in December and the 14th being paid in July. Each payment is the equivalent of one months salary.
In Honduras, income tax rates are progressive, with higher income levels subject to higher tax rates.
Gross Annual Salary (HNL)
Tax Rate (%)
Up to 172,117.89
172,117.90 – 262,449.27
262,449.28 – 610,347.16
Employers in Honduras are also responsible for various employer costs, which may include:
Sickness & Maternity
Invalidity, Old age & Death
Housing Fund (employers with more than 10 employees)
Pension and Healthcare
Pension provision in Honduras is managed by the Honduran Institute of Social Security (IHSS) and the National Institute of Pensioners and Retirees (INPREMA). The IHSS covers employees in the private sector, while INPREMA is responsible for public sector employees. The pension schemes are funded through employee and employer contributions. Employees contribute a percentage of their salary, and employers match this contribution.
Healthcare in Honduras
Honduras provides healthcare services through a combination of public and private systems. The public healthcare system is administered by the Ministry of Health and is accessible to all citizens and legal residents. However, public healthcare facilities may face challenges in terms of infrastructure and resources, leading some individuals to seek private healthcare alternatives.
Private healthcare options offer a higher standard of care, with modern facilities and specialized services. Many businesses in Honduras provide private health insurance coverage as part of their employee benefits packages. It is advisable for businesses expanding in Honduras to consider providing private health insurance to ensure comprehensive healthcare coverage for their employees.
While healthcare access is generally available in urban areas, remote and rural regions may have limited healthcare services. It is important for businesses to assess the local healthcare infrastructure and consider providing additional support, such as onsite medical facilities or access to emergency services, depending on the location of their operations.
Employment Law in Honduras
Relevant Legislation: The most important pieces of legislation governing employment law in Honduras include the Labor Code, which sets out the rights and obligations of employers and employees, and the Social Security Law, which regulates social security benefits and contributions.
Employment Contracts: Employment contracts in Honduras can be either written or verbal, although it is advisable to have written contracts to avoid any misunderstandings. Contracts should include essential terms such as job description, working hours, compensation, and benefits.
Working Hours: The standard working week in Honduras is 44 hours, typically divided into five or six days. The standard working day consists of 8 hours. Any work beyond the standard working hours is considered overtime.
Leave: Mandatory leave requirements in Honduras include annual paid leave and public holidays. Employees are entitled to at least 15 days of paid annual leave after completing one year of continuous service. The country also observes several national public holidays when employees are entitled to a day off with full pay.
Overtime: Overtime refers to work performed beyond the standard working hours. In Honduras, the maximum limit for overtime is 2 hours per day or 12 hours per week. Overtime work is compensated at a higher rate than regular work, usually at 150% of the regular hourly wage.
Termination: An employee may be terminated for various reasons, such as poor performance, misconduct, or economic reasons. Employers must follow due process and provide valid justifications for termination. Procedures may include verbal or written warnings and opportunities for improvement or corrective action.
Notice: Employers are generally required to provide notice when terminating an employee, except in cases of serious misconduct. The length of the notice period depends on the length of service, typically ranging from 8 to 30 days. Employers may also provide payment in lieu of notice.
Severance Pay: Severance pay is generally required when terminating an employee without just cause or due to economic reasons. The amount of severance pay depends on the length of service and the employee’s salary, typically ranging from 15 to 30 days’ salary per year of service.
Work Permits in Honduras
The immigration system in Honduras is administered by the National Institute of Migration (INM), which regulates the entry and stay of foreign nationals in the country. Whether for business purposes or employment, foreign nationals must obtain the appropriate visas or work permits to legally work in Honduras.
The most common types of visas and work permits available include:
- Temporary Work Visa: This visa is designed for foreign nationals employed by a Honduran company or organization. It allows individuals to work in Honduras for a specified period, typically aligned with the duration of their employment contract. To obtain a Temporary Work Visa, applicants must provide documentation such as a valid passport, employment contract, and proof of qualifications.
- Investor Visa: The Investor Visa is available for individuals who plan to invest in a business or make a significant financial contribution to the country. This visa category encourages foreign investment and provides an avenue for entrepreneurs and investors to establish or contribute to businesses in Honduras. Requirements for an Investor Visa may include evidence of the investment or financial contribution, business plans, and other supporting documents.
- Independent Worker Visa: The Independent Worker Visa is suitable for self-employed individuals who wish to conduct business activities in Honduras. This category caters to freelancers, consultants, and professionals who work independently. Applicants may need to provide documentation demonstrating their professional qualifications, proof of income, and business plans.
Properly navigating the immigration system is crucial for businesses seeking to employ foreign talent or expand their operations in Honduras. Adhering to immigration regulations helps ensure a smooth and legally compliant process, allowing businesses to leverage the skills and expertise of international workers while contributing to the country’s economic growth.
Honduras Public Holidays
New Year’s Day
Day of the Americas
Day of the Armed Forces
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Honduras Employer of Record Benefits
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