Honduras

• New Year's Day
• Holy Thursday
• Good Friday
• Holy Saturday
• Easter Day
• Panamerican Day
• Labour Day
• Independence Day
• Discovery of America Day
• Francisco Morazan's Birthday
• Army Day
• Christmas Day

Working Hours

Standard working hours are eight hours a day or 44 hours a week. Nighttime working hours should not exceed 36 hours a week, and employees' working day and night hours should not exceed 42 hours a week. Regular overtime is paid at 13.50% of the employee's salary, whereas overtime on an employee's day off gets paid at 200.00% and 125.00% for nighttime work.

Minimum Wage

The minimum wage is determined on the size and activities of a business.

Employee Tax

Annual income	Tax rate
Up to HNL 172,117.89	0%
HNL 172,117.89 - 262,449.27	15%
HNL 262,449.28 - 610,347.16	20%
More than HNL 610,347.17	25%
Sickness and maternity contribution	2.5%
Old age and death contribution	2.5%

Bonuses

In Honduras, it is a requirement to pay a 13th salary in December and a 14th salary in June (extra month each). Discretionary benefits are not obligatory, but private businesses may offer private medical insurance.

Employment contracts in Honduras must be in writing and should include:

• Employee details with evidence of verification documentation
• Start date
• Job title and responsibilities or tasks
• Working hours
• Salary, commissions, profits, etc.
• Contract duration (if applicable)
• Place of employment
• Employee place of accommodation, if provided by the employer
• Details of the employee's dependents and any other people living with the employee
• Agreed with terms between the employer and the employee
• Employer and employee's signatures, plus the date and place of signing
Fixed-term contracts are only for temporary or specific work. The maximum duration that includes the renewal of the contract is 24 months.

Probation is 2 months or 60 days.

Annual Leave

Leave entitlement depends on the employee's length of service. Employees who have completed 12 months are entitled to 10 working days' leave.

Sick Leave

Sick leave is paid from the 4th day up to 26 weeks, with a possible extension of up to 52 weeks. Sick leave is paid at 66% of the average previous three months or entirely if hospitalised. The employer and social security authorities divide the payment equally.

Parental Leave

• Maternity leave: 12 weeks with 42 days scheduled before delivery if required and 42 days after delivery.
• Paternity leave: none

Termination Process

In Honduras, an employer has the right to terminate a contract without cause.

Contracts may be terminated, as below:

• Redundancy
• Mutual consent
• Sufficient cause
• Employee resignation
• Employee death
• End of contract or task

The written notice period depends on the employee's length of service.

Severance Pay

In Honduras, employees have no entitlement to severance pay if dismissed. Alternatively, it depends on the employee's length of service.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.