Honduras

Employer of Record (EOR) in Honduras

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Honduras . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Honduras.

Employer of Record people
A coin
Currency
Honduran Lempira
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Capital
Tegucigalpa
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Region
Americas
Megaphone
Language
Spanish
Hire remote employees
Population
9904607
A pile of gold
GDP
$22.98 billion
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GDP growth
0.0479
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Ease of doing business
56.3
Planet earth
World GDP share
0.0003

1. Grow your team in Honduras with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Honduras , particularly if you don't have established local relationships. You can hire employees in Honduras effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Honduras, formally the Republic of Honduras, is a Central American nation. Honduras is bounded on the west by Guatemala, on the southwest by El Salvador, on the southeast by Nicaragua, on the south by the Pacific Ocean at the Gulf of Fonseca, and on the north by the Gulf of Honduras, a huge Caribbean Sea inlet. Tegucigalpa is its capital and biggest city.

Before the Spanish colonization in the sixteenth century, Honduras was home to numerous prominent Mesoamerican civilizations, most notably the Maya. The Spanish brought Catholicism and the now-dominant Spanish language, as well as a slew of traditions that have melded with indigenous culture. Honduras gained independence in 1821 and has remained a republic ever since, despite experiencing tremendous social unrest and political instability and being one of the poorest nations in the Western Hemisphere. The International Court of Justice moved the northern half of what was known as the Mosquito Coast from Nicaragua to Honduras in 1960.

Because the country's economy is predominantly agricultural, it is particularly susceptible to natural calamities like as Hurricane Mitch in 1998. The lower class is mostly agrarian, whilst wealth is concentrated in the country's metropolitan areas. Honduras has a Human Development Index of 0.625, indicating that it is a medium developed country. When income disparity is taken into account, the Inequality-adjusted Human Development Index is 0.443.

Honduran civilization is mostly Mestizo, although there are large American Indian, black, and white minorities in the country. Until the 2009 coup and the 2017 presidential election, the country maintained relatively high political stability.

Honduras has a land area of 112,492 km2 (43,433 sq mi) and a population of about 9 million people. Its northern parts are part of the western Caribbean zone, as shown by population and culture. Honduras is well-known for its abundant natural resources, which include minerals, coffee, tropical fruit, and sugar cane, as well as its expanding textile industry, which feeds the worldwide market.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Honduras is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Paid leave is determined by the duration of service:

10 days for up to a year of work

12 days after 1-2 years of work

15 days after 2-3 years of work

20 days after 4+ years of work

The employee is therefore entitled to overtime time, which must be paid out at least three days prior to the start of the leave.

Public holidays

Honduras recognizes eleven public holidays.

Sick days

Sick leave is granted starting on the third day of illness. Employees are entitled to up to 26 weeks of maternity days each year, which can be increased to 52 weeks if necessary. If the person is ill and has no dependents, pay is 66 percent of the prior three-month total or 100 percent. The contractor and social security are also paid equally.

Maternity leave

Mothers are entitled to ten weeks of fully paid leave, with the company and the IHSS covering a portion of the wage. Pre-delivery leave should be 4 weeks, and post-delivery leave should be 6 weeks.

Paternity leave

Honduras currently has no statutory laws regarding paternity leave.

Parental leave

Honduras currently has no statutory laws regarding parental leave.

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

The termination method is determined by whether it is a case of just cause dismissal or wrongful dismissal.

Dismissal for cause is effective from the time the company tells the employee; nevertheless, the employee has the right to sue the employer and ask them to present evidence that their dismissal was justified. If the employer cannot establish grounds for dismissal, the employee is entitled to recover damages and losses, as well as accrued unpaid pay. Additionally, the employee has the right to bring a claim against the company and be reinstated.

If an employer is found to have terminated an employee in error and the employee is reinstated, the firm is not compelled to pay termination benefits.

Notice period

The length of employment determines the notice period. There will be a 24-hour notice period if the employment is for less than three months. The notice period is one week for jobs lasting three to six months. The notice period is two weeks for employment of more than six months but less than a year. The notice period is one month for employees who have worked for one to two years. The notice period is two months for employees who have worked for more than a year.

Probation period

There is no statutory probationary period in Honduras.

Severance pay

There is no severance payout entitlement for employees who were terminated for cause. Employees who are dismissed without cause or who are dismissed indirectly (due to the employee's failure to pay wages on time) are entitled to severance pay based on their length of work. For the first three months of employment, severance pay is equal to ten days' income. Severance pay is equal to 20 days' earnings for employees who have worked for six months to one year. Severance pay is one month's income for each year of employment, up to a maximum of 25 months.

6. Working hours

There is no information about the working hours for this country.

General working schedule

The standard work week is 44 hours, divided into six days of eight hours each. Managerial and supervisory employees, on the other hand, may work up to 12 hours per day.

Overtime

Nighttime hours are limited to between 7 p.m. and 5 a.m. and are limited to 36 hours per week, six hours per day. Shifts combining day and night work are limited to 42 hours per week, or seven hours per day. 14 to 16-year-olds may work up to four hours per day, while 16 to 18-year-olds may work up to six hours per day. Their workweek is limited to 36 hours, and those under the age of 16 are not permitted to work overtime.

Female employees and employees between the ages of 14 and 18 are entitled to a two-hour rest period during the workday. Sundays are designated as a rest day for employees. Those who work on Sunday are compensated with an additional rest day. Employers compensate employees for public holidays that fall on Sundays with standard pay plus the overtime rate.

A typical workday, including overtime, is limited to 12 hours, and employees are permitted to work overtime only four times per week. Overtime pay is calculated at 137.5 percent of the regular rate of pay. The pay rate for work on a rest day is 200 percent of the regular rate. The pay rate for night work is 125 percent of the regular rate.

7. Minimum wage

There is no information about the minimum wage for this country.

The minimum wage in Honduras varies by industry and employee count. As of 2021, the minimum monthly wage for an agricultural employee working for a company with one to ten employees is 6,762.70 lempiras. The minimum wage rate for an employee working in manufacturing for a company of similar size is 9,068.81 lempiras. Additionally, a collective bargaining agreement (CBA) or labor union may have its own set of laws to follow.

8. Employee benefits

There is no information about the employee benefits for this country.

The Honduran Health Insurance system ensures that people have access to health care benefits and services. Contributions at the following monthly wage rate are used to fund the service:

Employee: 2.5% of monthly wage

Employer: 5% of the employee’s monthly wage

Government: 0.5% of the employee’s monthly wage

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Honduras is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

Individual income tax

Honduras is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

VAT, GST and sales tax

Honduras is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

10. VISA and work permits

There is no information about VISA and work permits for this country.

Foreign nationals intending to visit Honduras for business or employment have numerous alternatives under the country's immigration regulations.

Visa-exempt nationalities may travel to Honduras without a visa and stay for up to 30 days. Visa nationals visiting Honduras for business must get either a Consular Visa (Visa Consular) or a Consulted Visa, depending on their place of citizenship (Visa Consultada). Both kinds of visas may be obtained directly from a Honduran consular post; however, the Honduran Ministry of Foreign Affairs must provide its authorisation before the Honduran consular post can issue a Consulted Visa.

Both visa-exempt and visa nationals may request to extend their business stay in Honduras for up to 90 extra days for a total of 120 consecutive days; however, foreign nationals who visit Honduras on separate business trips are limited to a total cumulative stay of 180 days within 365 days.

Foreign nationals may generally work without a work permit if their anticipated stay is less than 30 days and they do not receive reimbursement or payments from a Honduran source. Foreign nationals who work for a living in Honduras must get a Special Stay Permit with Work Contract. The Special Stay Permit is valid for a minimum of one year and, at the discretion of the authorities, for a maximum of five years. The foreign national must apply for temporary residency after five years of possessing a Special Stay Permit.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

The employment contract should be in writing and include information about both parties, the kind of work, work hours, remuneration, and other workplace regulations and procedures such as notice period, yearly leave, additional leaves, probation, start date, and termination date, if applicable.

Employers are not permitted to discriminate against applicants or employees based on gender or age. During the recruiting process, local applicants must be given precedence over foreign or expat candidates. Employers are not permitted to conduct pregnancy testing on applicants.

With Rivermate being your Employer of Record (EoR) in Honduras, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

Employment contracts may be indefinite or for a set amount of time. Fixed-term employment contracts are for a specified job or period of time and are not permanent. Contracts cannot be longer than a year, unless technical training is necessary, in which case they may be 60 months. Renewals are unlimited.

Payment currency

Honduran Lempira (HNL)

United States Dollar (USD)

13.Opening a subsidiary in Honduras

There is no information about the working hours for this country.

How to set up a subsidiary

Learning how to set up a subsidiary in Honduras is dependent on a number of things. Different areas or cities may function similarly to states, with their own set of rules and regulations. Before deciding on an office space, examine the actual location where you wish to grow to determine whether the regulations make it simple or difficult to expand.

Honduras also enables businesses to choose the optimal sort of corporation for their growth. A limited liability corporation (LLC), a public limited company (SA), a branch (sucursal), and a representative office (oficina de representación) are all alternatives. Each form has advantages and disadvantages, but many businesses prefer to organize as an LLC. The following actions are required to establish this sort of Honduras subsidiary:

1. Giving a certificate of deposit to a local bank and paying a registration fee

2. Establishing your business with a Notary Public who can draft your articles of incorporation

3. Filing your articles of incorporation with the Chamber of Commerce's Mercantile Registry

4. Obtaining a Tax Identification Number (TIN)

5. Purchasing books on legal accounting and "minutes"

6. Become a member of your local and national Chambers of Commerce.

7. Obtaining an operating permit

8. Obtaining sales tax registration and authorisation for the company's books

9. Creating an account with the Social Security Institute

10. Creating an account with the Professional Training Institute and the Social Housing Fund

Subsidiary laws

Compliance should be a top responsibility for your company, and you'll need to study Honduras' subsidiary laws to do so. Every organization has its own set of laws and regulations, so before you incorporate, you should familiarize yourself with the unique rules that apply to you. A minimum of one director and two stockholders of any nationality are required for an LLC. They are not need to reside in Honduras, and stockholders may be either persons or corporations.

To complete the incorporation procedure, you'll also require $250 in minimum share capital. To deposit the share capital, companies must establish a bank account with a Honduran bank. To approve the incorporation deed, all partners must appear before a Notary Public. The incorporation deed will then be recorded with the Public Registry of Commerce at the company's domicile.

13. Why choose Rivermate as your Employer of Record / PEO in Honduras

Establishing an entity in Honduras to hire a team takes time, money, and effort. The labor law in Honduras has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Honduras simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Honduras give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Honduras via our Employer of Record (EOR) / PEO solution.

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