Honduras Employment Guide

Understanding Honduras Minimum Wage Requirements

Honduras establishes minimum wage levels based on industry sector and company size. For SailGlobal EOR employees in 2024, the monthly minimum wage stands at HNL 12,597.91. This baseline compensation ensures fair remuneration while maintaining competitive labor costs for international employers.

Personal Income Tax Structure

Honduras employs a progressive tax system where rates increase with income levels. The tax brackets range from 0% to 25%, allowing for equitable distribution of tax burdens across different income groups.

Employer Social Security Contributions

Employers should anticipate additional costs averaging 15.20% of employee salaries for mandatory social security contributions. These include:

1. National Vocational Training Institute (INFOP): 1%
2. Public Health Insurance (disability, retirement, death): 3.5%*
3. Public Health Insurance (sickness, maternity): 5%
4. Public Health Insurance (occupational risk): 0.20%
5. Housing Fund (RAP): Fondo de Vivienda: 1.50%***
6. Housing Fund (RAP): Unemployment/Labor Reserve: 4%****

*Capped at HNL 11,109.30 monthly
**Capped at HNL 11,336.32 monthly
***Applied to salary exceeding HNL 11,336.32
****Subject to monthly cap

Working Hours and Overtime Regulations

The standard workweek consists of 44 hours, typically distributed as eight-hour days Monday through Friday plus four hours on Saturday. Overtime compensation is mandatory and calculated separately from base salary.

Employees may work up to 16 overtime hours weekly, with premium rates varying by timing:

1. Overtime between 5:00-19:00: 125% of hourly rate
2. Overtime between 19:00-5:00: 175% of hourly rate
3. Mixed period overtime: 150% of hourly rate
4. Weekend and holiday overtime: 200% of hourly rate

Practical Considerations for International Employers

Companies expanding into Honduras should note that proper overtime tracking is essential for compliance. For example, a manufacturing company using SailGlobal's EOR services avoided penalties by implementing automated timekeeping systems that accurately calculated differential overtime rates.

The progressive tax system means higher-earning employees require careful payroll planning. Many multinational corporations establish tiered compensation packages that optimize take-home pay while ensuring full tax compliance.