Employer of Record in Honduras | Hire Talent Worldwide

Employer of Record in Honduras

Hire Globally, Pay Locally, Expand Effortlessly

An Employer of Record in Honduras can be your link for expanding seamlessly into a new market. EOR (Employer of Record) services handle HR administration and ensure you’re legally compliant with the country’s tax and labor laws. As a result, you can quickly hire local talent or dispatch foreign workers, pay employees in local currency, and comply with Honduran labor laws without incorporating a legal entity.  

Ordinarily, companies seeking to expand abroad must navigate a foreign country’s complex legal and administrative frameworks. This process is capital-intensive, slow, and rife with legal risks.  

However, using an Employer of Record (EOR) abroad is a streamlined and innovative global expansion approach in Honduras. EOR service providers become the legal employer of your staff in Honduras and handle all accompanying employer liabilities so that you can focus on growth.  

Employer of Record in Honduras - Summary

The Advantages of Using an Employer of Record in Honduras

Ensure Compliance with Local Laws

The Honduran labor landscape can be intricate for foreign companies, but partnering with an EOR in Honduras ensures your business complies with all local laws and regulations. 

Streamline Expenses and Timeframes

Establishing a legal entity in Honduras is costly and time-consuming. However, companies save costs and speed up the expansion process using a local EOR instead 

Concentrate on Business Growth

Concentrate on strategic growth initiatives by outsourcing HR administration and compliance duties to an EOR. As a result, you can better manage employees’ day-to-day contributions to your growth.  

Minimize Business Risks

Operating in a foreign country like Honduras is risky since you are interacting with foreign compliance and employment laws. But an EOR with a deep understanding of Honduran regulations allows you to operate compliantly and protects your reputation.

Comprehensive Global Presence

Leverage our understanding of the local market, industry-specific challenges, and best practices to optimize your expansion in Honduras and 100+ countries globally. 

Why Choose A EOR Over Company Incorporation?

Incorporating your company abroad is a tried and tested expansion route, but it brings numerous risks and hassles. This method involves complex legal procedures and substantial costs, which can limit or endanger your expansion strategy. Also, incorporating a subsidiary abroad can take several months, making it inappropriate for time-sensitive projects.  

In contrast, EORs allow hiring and paying employees locally without establishing a separate entity abroad. Also, unlike company incorporation, your Honduran EOR partner handles all ongoing administrative or compliance duties for you. This streamlined approach allows you to focus on primary business and pivot successfully.  

Hence, an EOR in Honduras allows you to quickly and safely:  

  • Test new markets 
  • Handle project-based work 
  • Focus on core business 
testimonial from Manuel Ramos


Manuel Ramos


Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 


How Does an Employer of Record in Honduras Work?

The process for engaging an EOR in Honduras is simple: 

  • Assessment of business requirements: First, our team at INS Global conducts a comprehensive review of your business needs and employment requirements in Honduras. This evaluation helps us develop a customized plan for your expansion objectives. 
  • The legal entity for hiring: Once a unique plan is agreed upon, we will immediately provide a legal entity for hiring and deploying your workers in Honduras. 
  • HR administration and compliance: As your EOR partner, we immediately assume full legal responsibility for HR administration and ensure compliance with Honduran tax and labor laws concerning your operations. 
  • Focus on growth: Finally, you can concentrate on managing the day-to-day operations and employee contributions toward your business’s growth. We will manage the local HR and legal aspects of your business in Honduras while you work on building success.  

What’s The Difference Between PEO And EOR?

PEOs and EORs are equivalent to 2 service types falling under the umbrella of employment outsourcing.   

A PEO in Honduras acts as a co-employer, sharing certain employer liabilities with your company while providing HR operational support.  

In contrast, an EOR assumes full legal responsibility for all HR and employment-related matters, such as hiring and transferring workers, payroll management, tax compliance, issuing and documenting employment contracts, and other HR tasks. 

While both options can be valuable depending on specific business needs, an EOR offers more comprehensive support and flexibility for many international companies seeking to expand into Honduras. 

Labor Law in Honduras - 2024

Employment Contracts In Honduras

Honduras recognizes oral employment contracts, but best practice suggests providing a written contract clearly outlining the terms and conditions of employment. Such handy agreements help to avoid future misunderstandings and disputes. 

The  labor contract should contain these essential details: 

  • Names and addresses of both parties 
  • Employee duties and responsibilities 
  • Remuneration and benefits 
  • Working hours 
  • Leave entitlements 
  • Probationary period 
  • Termination conditions and notice period  

The contract should specify whether it is for a fixed or indefinite period. Fixed-term contracts should clearly state the contract’s duration or end date. 

These are the common forms of employment agreements in Honduras:  

  • Indefinite term (Contrato a Tiempo Indefinido) 
  • Contract for a definite period (Contrato a Tiempo Determinado) 
  • Part-time contract (Contrato a Tiempo Parcial) 
  • Seasonal or temporary Contract (Contrato de Temporada) 
  • Apprenticeship contract (Contrato de Aprendizaje) 
  • Project-based Contract (Contrato por Proyecto)  

The maximum probationary period allowed by law in Honduras is 2 months or 60 days. 

In Honduras, contract termination can be relatively straightforward if the employer and the employee agree to terminate the contract. They can agree on the terms and conditions of termination, including any severance or compensation. 

However, when one party fails to fulfill its contractual obligations or engages in serious misconduct, the party seeking termination must provide valid reasons for termination. Such terminations can be done without notice or severance pay and may involve disciplinary action. 

When terminating a labor contract without cause, employees are required to provide notice and make severance pay appropriate to the employee’s length of service as described below:  

  • A 24-hour notice for employment of less than 3 months 
  • 1-week notice for employment of more than 3 months but less than 6 months 
  • 2 weeks’ notice for employment of more than 6 months but less than 1 year 
  • 1-month notice for employment of more than 1 year but less than 2 years 
  • 2-month notice for employment of more than 2 years 

In an indefinite contract, either party can terminate it by providing notice to the other party. 

An employer is obliged to make a severance payment when terminating without cause:   

  • 10 days’ wages for employment of more than 3 months but less than 6 months 
  • 20 days’ wages for employment of more than 6 months but less than 1 year 
  • 1 monthly salary per year from 1 year of service onwards,  and in proportion to any fraction of the year, with a ceiling of 25 monthly salaries

Working Hours In Honduras

The normal working hours in Honduras are at most 8 per day or 44 hours weekly. However, the 44-hour limit does not apply to these groups of workers or industries: 

 Managerial and supervisory workers 

  • Domestic workers 
  • Intermittent work, e.g., hotel staff 
  • Private chauffeurs and drivers 
  • Work that by its nature can not be subject to the hours limit, e.g. agriculture or stock breeding 
  • Workers paid on commission and similar employees who don’t work in a defined workplace 


Still, these workers cannot be required to remain at work for more than 12 hours a day and are entitled to a minimum rest period of 1.5 hours. 

The normal work hours on any day may be continuous or divided into 2 or more periods with breaks for rest as are appropriate to the nature of the work and the worker’s requirements. 

For continuous work hours, the worker shall be entitled to a minimum of 30 minutes rest in the day; this rest shall be counted as working time. 

In Honduras, the maximum daily working time is 12 hours (both normal and overtime). Employers cannot require individual workers to work overtime for more than 4 times a week. 

Overtime work in Honduras is remunerated as follows:  

  • 25% above the normal salary when the work is performed during the daytime. 
  • 50% above the normal salary when the work is performed during nighttime. 
  • 75% above the night work’ salary when overtime work is a continuation of the night time work. 


Full-time employees in Honduras should receive a 13th-month salary (to be paid out as a Christmas bonus in December) and a 14th-month salary payment in July. Each payment equals one month’s standard salary. 

Public Holidays in Honduras

Employees in Honduras are eligible for paid leave on the country’s 10 nationally recognized public holidays:   

  • New Year’s Day – January 1 
  • Holy Thursday – Date varies (movable holiday, Thursday before Easter Sunday) 
  • Good Friday – Date varies (movable holiday, Friday before Easter Sunday) 
  • Labor Day – May 1 
  • Day of the Americas (Día de las Américas) – April 14 
  • Independence Day – September 15 
  • Army Day (Día de las Fuerzas Armadas) – October 3 
  • Morazán Day (Día de Morazán) – October 21 
  • Christmas Day – December 25 
  • Boxing Day – December 26 

Annual Leave in Honduras

To be entitled to paid annual leave, a Honduran worker must have performed at least 1 year of continuous employment with the same employer. The yearly leave duration is proportional to the time of work performed with the same employer:  

  • 10 consecutive working days after 1 year of service 
  • 12 consecutive working days after 2 year’s consecutive service 
  • 15 consecutive working days after 3 year’s consecutive service 
  • 20 consecutive working days after 4 or more year’s consecutive service 

Sick Leave in Honduras

Employees in Honduras are entitled to sick leave, and their compensation during this period is supported by social insurance. The insurance covers approximately two-thirds (66%) of their average monthly salary over the previous 3 months.  

Employees can receive such payments, which can continue for up to 26 weeks. In certain circumstances, the payment duration can be extended to a maximum of 52 weeks.  

However, employees are entitled to 100% of their pay if they are hospitalized and without dependents. The employer and the state share the cost of sick leave equally. 

Maternity/Paternity Leave in Honduras

Female employees have the right to up to 10 weeks of maternity leave, plus 4 weeks before giving birth. During leave, the workers recieve 66% of their normal pay.  

Female employees have the right to up to 3 months of paid maternity leave for illnesses related to pregnancy or childbirth upon providing a medical certificate. This absence can continue indefinitely but is unpaid beyond the initial 3 months. 

Female workers not covered by social insurance will receive maternity leave payments from their employers. 

There are no laws for paternity leave in Honduras currently. 

Social Security & Tax Law in Honduras

Social security tax contributions in Honduras are assessed as follows in HNL (Honduran lempira): 


  • Sickness and maternity: 2.5% from employees on income up to a maximum ceiling of HNL 10,342.19 
  • Invalidity, old age, and death: 1% from employees on income up to a maximum ceiling of HNL 10,796.49 

Personal income tax in Honduras is progressively based on income bracket, as shown below: 

Income (Honduran lempiras) 

Tax rate (%) 

0 – 199,039.47  


199,039.48 – 303,499.90 


303,499.91 – 705,813.76 


705,813.77 and over 


Honduran citizens and residents are taxed on income earned from worldwide sources, while non-residents are taxed only on Honduran-sourced income. 

A resident company’s corporate income tax rate in Honduras is 25% of its net taxable income. 


Discover More Solutions in Honduras


No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

An Employer of Record (EOR) in Honduras takes on the responsibilities and obligations of being the legal employer for a company abroad. EORs assume various employer-related tasks and liabilities, including payroll administration, tax withholding, benefits management, and compliance with employment laws. 

The price of professional EOR services in Honduras is a percentage of the worker’s monthly compensation. This fee covers all HR-related tasks to ensure compliance with local employment laws. 

Yes. An EOR in Honduras is a safe, legitimate, and efficient way to handle employer responsibilities without establishing a corporate structure in the country 

An EOR service agreement in Honduras ensures your team members are paid accurately and on time each month. Also, employees can access all Honduran employee benefits and be completely protected by the law thanks to legal expertise and compliance assurance support. 

Independent contractors who interact with clients using an EOR in Honduras will retain complete control of their work and may qualify for the same benefits as regular employees. So, partnering with an EOR is like working via an umbrella organization with your interest. 

Yes. Our team of recruitment consultants experts can find the best local talent in Honduras for your needs.  

Yes. An Employer of Record can tap into its online or offline pool of professional networks to help you find workers in various cities or regions within Honduras.  


An EOR handles headhunting, interviews, and candidate selection in specific Honduran cities or regions, depending on your needs or preference.  

You can employ any number of employees to achieve your goals. Some PEO or EOR service providers have a minimum or maximum limit, but INS Global has no number limit when hiring. This is because we recognize the importance of flexibility when implementing a business strategy in Honduras, allowing you to scale up or down quickly at any time. 

The option for your employees to work in a shared workspace is good. But using a PEO in Honduras eliminates the need for a local business address. 

Yes. We can manage the necessary visa and work permit processes for foreigners in Honduras. Also, we can handle situations where the local employment laws, tax laws, or employee benefits differ for Hondurans and foreigners. 

EOR and PEO solutions are great for SMEs and multinational corporations. They ensure the efficient and secure employment of foreign or local workers. In addition, such services allow you to scale employment demands to meet work operations. 

Staffing firms and umbrella corporations are third-party ways to hire independent freelancers in Honduras. 

The cost of hiring in Honduras factors in all expenses like salary, recruiting service fees, signing bonuses, and social security contribution payments. 

Employers in Honduras manage payroll for all workers and are responsible for withholding and remitting amounts corresponding to employees income tax and social security fund contributions monthly. 

There is no single national minimum wage in Honduras. Instead, minimum wages are determined by industry. 

Here are the common visa types for employees in Honduras: 



  • Work Visa (Visa de Trabajo): This visa is for foreign nationals with a job offer from a Honduran employer. It allows individuals to work and reside in Honduras for a specific employment period.  
  • Temporary Work Visa (Visa de Trabajo Temporal): The temporary work visa is for foreign employees who are coming to Honduras for a specific short-term work assignment or contract. This visa may have a limited validity period based on the terms of the employment contract. 
  • Resident Visa (Visa de Residencia): The visa allows foreign nationals to live and work in Honduras for an extended period. It is ideal for those who plan to stay in the country for an extended period or those who wish to establish permanent residency. 
  • Investor Visa (Visa de Inversionista): The visa is for foreign investors who wish to invest in Honduras and participate in managing their business or investment ventures in the country. 
  • Specialized Occupation Visa (Visa de Ocupación Especializada): This visa allows individuals of foreign nationals with specialized skills or expertise to work in Honduras. 

In Honduras, employers are responsible for organizing and withholding employees income tax payments and social security fund contributions every month. 

Employees in Honduras are entitled to a state pension, a 13th and 14th-month salary, severance pay, public holidays, paid leave (sick, annual, and parental leave), and health insurance. 

Honduras does not permit unilateral changes to an employees contract. Instead, changes to an employees working conditions must be agreed upon and signed by the employer and employee. 

In addition to private healthcare, the government operates the main public healthcare system in Honduras, which is funded through tax revenue and contributions to the Honduran Social Security Institute (IHSS). This system provides healthcare services through a network of public hospitals, health centers, and clinics across the country. 

Employers in Honduras wishing to terminate an employee’s contract must give appropriate notice and make severance payment as shown below: 



  • 10 days’ wages for employment of more than 3 months but less than 6 months 
  • 20 days’ wages for employment of more than 6 months but less than 1 year 
  • 1 monthly salary per year from 1 year of service onwards,  and in proportion to any fraction of the year, with a ceiling of 25 monthly salaries 

Labor regulations in Honduras are regulated and enforced by the Ministry of Labor and Social Security (Secretaría de Trabajo y Seguridad Social – STSS). The ministry is responsible for formulating and implementing labor policies, ensuring compliance with labor laws, and protecting workers’ rights and welfare in Honduras. 

Employees in Honduras are eligible for paid leave on the countrys 10 nationally recognized public holidays.