Honduras

Employment taxes

• Income tax (ISR): Progressive rates from 0% to 25%.
• Payroll contributions (employee side): Around 2.5–3.5% for social security.
• Payroll contributions (employer side): Around 11.5% (health, disability, and INFOP).

Leave policy

• Vacation: 10 days after 1 year, 12 after 2 years, 15 after 3 years, and 20 days after 4+ years.
• Public holidays: 11 paid holidays per year.
• Sick leave: Covered partly by employer and social security. The employer is generally responsible for paying 100% of the salary for the first three days. From the fourth day onwards, social security pays a percentage of the salary (typically 66%) for a specified period.
• Maternity leave: 10 weeks (4 before birth, 6 after). The employee will receive 100% of the salary during this period, Social Security will be responsible for 66% and the employer will pay 34%.
• Paternity leave: Not mandatory by law.
• Parental leave: No law covers parental leave.

Employment termination

• Termination requires just cause or notice. Employees are entitled to severance pay, which grows with years of service (from 10 days up to 20 months of pay).
• The minimum notice period is 1 day and will be increased according to the length of the employment up to 2 months for 2+ years of service.

Hiring and contracts

• Must be in writing and in Spanish, signed by both parties.
• Should include salary, role, hours, and termination conditions.
• Most contracts are indefinite, but fixed-term are also allowed.
• Probation periods are mandatory and last 60 days maximum.

Payroll and salary payments

• Paid monthly in USD.
• Minimum wage: HNL 11,972 to 18,036 per month (USD 470–706), depending on sector and company size.

Benefits:

Mandatory:

• 13th and 14th-month bonuses.
• Paid vacation, sick leave, and maternity leave.
• Social security registration (IHSS).

Optional:

• Health insurance top-ups.
• Meal or transport allowances.
• Performance bonuses.

Monthly living cost (Tegucigalpa Edition)

• Rent (1-bed apartment, city center): $300–450
• Utilities: $80–100
• Internet: $35–50
• Local transport: $25–40
• Eating out: $4–10 per meal
• Average monthly cost for one person: $800–1,000

How to get a local ID number

• Residents/employees: Register with the Registro Nacional de las Personas (RNP).
• Remote workers/digital nomads: Temporary residency permits may be needed before getting a tax ID.

Social security registration

All employees must be registered with IHSS (Instituto Hondureño de Seguridad Social) by their employer for healthcare and pension coverage.

Banking

Popular banks:

• Banco Atlántida
• BAC Credomatic
• Banco de Occidente
• Banco Ficohsa

You’ll need a local ID or residency permit to open an account.

Housing and rental process

• Rentals usually require 1–2 months’ deposit.
• Tenants have rights under Honduran tenancy laws, landlords must provide safe, livable conditions and can’t evict without due process.

Healthcare system

• Public healthcare via IHSS (basic but often limited).
• Many expats choose private hospitals and clinics, which offer faster and higher-quality care.

Driving and public transport

• Driving: An international license works temporarily; long-term residents must get a Honduran license.
• Public transport: Buses are cheap but not always the safest, most expats rely on taxis, rideshare apps like Uber, or private shuttles.

Emergency and important contacts

• Police: 911
• Fire: 198
• Medical emergencies: 195
• IHSS (social security): +504 2232-3160

Work permit and visa requirements

• All foreign citizens need visa and work permit to work and live in Honduras.
• Your Honduran employer files the work permit request with the Ministry of Labor and the Immigration Institute and you apply for a temporary residence visa for employment at a Honduran consulate in your home country.
• Once you enter the country with your visa, you must register with the National Institute of Migration. You’ll receive a temporary residence card (valid for 1–2 years, renewable). .
• The whole process can take 1 to 3 months, depending on how fast documents are collected and approved.

Business culture and work norms

• Workweek: Max 44 hours, usually Monday-Friday.
• Hierarchical workplaces: respect for authority matters.
• Meetings may start late, flexibility is part of the culture.
• Relationships and trust are key in doing business.