Overview

Capital Tegucigalpa

Currency Lempira (HNL)

Date Format dmy

Taxes

Employer 3.50% - Welfare Insurance (Collective Capitalization Pillar)
5.00% - Health Care
1.50% - Welfare Insurance Complimentry Individual Account

Employee 2.50% - Welfare Insurance (Collective Capitalization Pillar)
2.50% - Health Care
1.50% - Welfare Insurance Complimentry Individual Account
0.00% - Up to 152,557.15
15.00% - 152,557.15 - 232,622.61
20.00% - 232,622.62 - 540,982.81
25.00% - Over 540,982.83

Termination

Termination Process Termination procedure is determined by the length of employment with a company. * Less than 3 months is entitled to 24 hour notice. * 3-6 months is entitled to one week notice. * 6 months - one year is entitled to two weeks notice. * 1-2 years is entitled to one months notice. * Over 2 years is entitled to two months notice.

Advance Notice No advance needed

Severance Pay Severance payments are calculated by length of employment with a company. * 3-6 months receives 10 days of regular salary * 6 months - one year receives 20 days of regular salary * Over one year receives one month salary for each year in the company.

Mandatory Benefits

Pension Fund The minimum pension is 50% of basic monthly earnings or 1,500 Lps whichever is greater. The maximum pension is 80% of basic monthly earnings. Basic monthly earnings are employee's average monthly salary for past 180 months prior to month of entitlement

Social Security Employer contributes 3.5% and employees contribute 1.5% of monthly covered payroll with a max contribution of Lps 8,882.31.

Disability Pension The minimum pension is 50% of basic monthly earnings or 1,500 Lps whichever is greater. The maximum pension is 80% of basic monthly earnings. Basic monthly earnings are employee's average monthly salary for past 180 months prior to month of entitlement

Unemployment Insurance Employer contributes 1.32% of covered payroll with employers with more than 10 employees and contributions of 0.66% for employers with less than 10 employees as of January 2018) Employer contributes cease when the account reaches 50% of the max severance payable (25 months of employee's monthly salary)

Minimum Wage

General The minimum wage depends on the # of employees in the company & the economic activity to which a company is dedicated (i.e. agriculture, manufacturing, technology, etc.)

Working Hours

General Full Time employment is considered 44 hours weekly, and 8 hours daily.

Overtime Overtime is paid at 125% for overtime hours during the day, and 150% for overtime hours at night.

VAT

General VAT is 15% standard rate.

Payment

General 1 Salaries are paid either every 15 days or monthly basis. The paydays are decided between the employer and employee.