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In Honduras, employees are entitled to paid annual leave after having worked for 12 continuous months for the same employer and can take advantage of it if they have worked for at least 200 days in the preceding year. The length of the leave depends on the length of service, as follows:

• 10 working days for 1 year of continuous service
• 12 working days for 2 years of continuous service
• 15 working days for 3 years of continuous service
• 20 working days for at least 4 years of service

Splitting or accumulation of annual leave is not generally permitted. However, in exceptional cases, where the nature of the work does not allow for extended absences, annual leave may be accumulated for 2 years.

In Honduras, workers are entitled to protection in cases of temporary disability or sickness, whether resulting from an occupational accident or disease or from a non-occupational illness.

In the case of an occupational accident or occupational disease, wage replacement and medical benefits are provided through the Labor Risks Insurance administered by the Honduran Social Security Institute (IHSS). During the period of temporary disability, the employee receives a temporary disability subsidy from IHSS, equivalent to 66% of the insured wage. The employer is not required to pay regular wages during this period, but must preserve the employment relationship.

In the case of a non-occupational illness, the employee is entitled to a temporary suspension of the employment contract. The employer is responsible for paying the first 3 days of sick leave. From the fourth day onward, if the worker is insured and meets the contribution requirements, the IHSS pays a sickness subsidy.

If the employee is not covered by social security or the illness is not protected by the Social Security Law, the employer’s obligation is limited to granting medical leave and paying partial wages based on the worker’s length of continuous service.

The Labor Code of Honduras provides for fully paid maternity leave for 10 weeks (70 days) upon proof of pregnancy in the form of a medical certificate that indicates pregnancy, the expected delivery date, and the commencement date of maternity leave. The 10 weeks of maternity leave are split into 2 parts: 4 weeks before the expected delivery date and 6 weeks after.

Employees receive their normal wages while out on maternity leave. The Honduran Institute of Social Security covers 66% of wages for insured employees, while the employer is responsible for paying the remaining 34% of salary. If the employee is not enrolled with the Social Security Institute or has not made at least 10 contributions immediately before the start of maternity leave, the employer is liable to pay the employee's full salary.

There are no provisions in the Labor Code of Honduras regarding paid or unpaid paternity leave.

Minimum Wage

Depending on the size of the company and industry, the minimum wage may vary. The current minimum monthly wage rates applicable through 2026 vary between HNL 9,053.43 (Honduran lempiras) for agriculture, forestry, fishing, and hunting industries and HNL 18,036.18 for financial institutions, real estate, and services provided to companies. Effective January 1, 2026, the minimum wage for the free zone/textile maquila (export processing) industry is HNL 12,930.07.

Salary must be paid in a periodic manner, the term of which is set by the employees and employer, not exceeding 1 week for manual workers or 1 month for other employees and domestic workers.

Overtime, Holiday & Vacation Pay

The labor law of Honduras sets the standard workday at 8 hours and the standard workweek at 44 hours for daytime work and 36 hours for night work. Employees working greater than these standard hours must be paid overtime compensation. A working day must not exceed 12 hours (regular hours and overtime). An employee can work a maximum of 16 overtime hours a week. The overtime pay rates are as follows:

• The overtime rates are as follows:

• 125% of the standard daytime rate when overtime is performed during daytime hours
• 150% of the standard daytime rate when overtime is performed during nighttime hours
• 175% of the standard nighttime rate when the overtime work is a continuation of a regular nighttime shift
• 200% for overtime hours worked during weekly rest days and public holidays

If an employee is required to work on rest days or public holidays due to the nature of their work or an emergency, they will be paid twice their normal salary for the day. An employer must pay the employee's salary that would come due over the employee's annual leave at least 3 days before the employee goes on vacation. If the employment is terminated before the enjoyment of annual leave, the employee receives compensation in lieu of it.

Notice Period

The Honduran Labor Code requires employers to give a written dismissal notice indicating the cause for termination of an employment contract. If the contract is oral, notice can be given verbally before 2 witnesses. The length of the notice period differs depending on the employee’s length of service as follows:

• 24 hours notice for service of fewer than 3 months
• 1 week of notice for service between 3 and 6 months
• 2 weeks of notice for service between 6 and 12 months
• 1 month of notice for service between 1 and 2 years
• 2 months of notice for service of more than 2 years

Said notices can be omitted by any parties paying the other the corresponding amount.

Severance Benefits

In Honduras, the Labor Code states that severance payment shall be provided when an employment contract of an indefinite period is terminated in each of the following situations:

• Unfair dismissal
• For just cause due to gross misconduct
• Any reason beyond the employee's control

The severance payment in these situations varies, depending on the worker's length of employment:

• 10 days' wage for employees with 3 to 6 months of service
• 20 days' wage for employees with 6 months to 1 year of service
• 30 days' (1 month) wage for each year of work for employees with more than 1 year of service, not to exceed 8 months of wages

Pension

Honduras no longer operates 2 pension systems. Although there was an attempt in the past to introduce a second pension system based on individual retirement accounts (similar to private pension savings accounts), that system was cancelled by the courts in 2022. As a result, it is not used today.

Only the public social security pension system run by the Honduran Social Security Institute (IHSS) is currently in force in Honduras. This is a pay-as-you-go system where pensions are calculated using years of contributions, age, and past earnings.

To qualify for an old-age pension (pensión por vejez), the insured person must reach age 65 (men) or age 60 (women) and have at least 180 months of contributions.

Insured persons who qualify for an old-age pension will receive 40% of their basic monthly earnings, plus 1% of their basic monthly earnings for every 12 months of contributions exceeding 60 months.

Dependents/Survivors Benefits

A survivors pension (pensión por sobrevivencia) is available if, in case of a death resulting from an illness, the deceased made at least 36 months of contributions in the last 6 years or for a death resulting from a non-work-related accident, if the deceased made 8 months of contributions in the 24 months before death. The deceased person must have at least one month of covered employment to be eligible for survivor benefits for an occupational death.

Eligible survivors include a widow(er) or partner aged 65 or older or with a disability and children younger than age 14 (age 18 if a student; no limit if disabled). If there is no widow(er), partner, or child, the deceased's mother of any age and the deceased's father older than age 65 or with a disability are entitled to survivor benefits. The maximum combined survivor pension is 100% of the social insurance old-age or disability pension the deceased received or was entitled to receive.

Invalidity Benefits

To qualify for a disability pension (pensión por invalidez), the insured must have at least a 65% assessed loss of earning capacity for their usual occupation and at least 36 months of contributions in the last 6 years.

Insured persons who qualify for a disability pension will receive 40% of their basic monthly earnings plus 1% of basic monthly earnings for every 12 months of contributions exceeding 60 months multiplied by the loss of earning capacity. The minimum monthly disability pension is 50% of the insured's basic monthly earnings or HNL 1,500 (Honduran lempiras), whichever is greater. The maximum monthly disability pension is 80% of the insured's basic monthly earnings. The constant-attendance supplement is worth up to 50% of the disability pension.

In case of work injury, there are 2 types of benefits that are paid - temporary disability and permanent disability.

Personal Income Tax

Personal income tax rates in Honduras are progressive and vary from 0% to 25%. There is a 10% flat-rate tax applicable to income from capital assets. All persons who domicile or are residents in Honduras are liable to pay income tax on their income, irrespective of the source. Non-residents are taxed on their income from sources in Honduras.

Visas

Foreign nationals looking to come to Honduras can obtain the following visas, depending on their reasons to visit:

• Tourist visa
• Business visa
• Diplomatic visa
• Official visa

Work Permits

In Honduras, in addition to the documentation required for a visa, migrants applying for a work permit (special residence permit) must have the following:

• An application submitted by the natural or legal person requesting the migrant worker's services from abroad
• Proof from the Ministry of Labor and Social Security certifying compliance with the constitutional provision regarding hiring foreigners
• Proof that the employment lasts more than 3 months

Special residence permits are issued for a duration of 1 to 5 years.

The minimum working age in Honduras is 14, and minors under 18 need authorization from the Secretary of State for Labor and Social Security to work. Children between the ages of 14 and 16 can work up to 4 hours daily, while those between the ages of 16 and 18 can work up to 6 hours, with limited night work allowed until 8 PM. Hazardous work is restricted to those 18 and older, with very few exceptions for 16- and 17-year-olds.