Overview

Capital
Tegucigalpa
Currency
Lempira (HNL)
Date Format
dd/mm/yyyy

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

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.

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)

Payroll

Payroll Cycle

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

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

Advance notice is not required.

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.