How to hire remote employees in

Honduras

Want to learn how to hire remotely in Honduras, without paying $$$ in fees and waiting months to onboard your talent? You’re in the right place. On this page, we’ll teach you what you need to know to make remote hires—the right way—in Honduras.

Country snapshot

CURRENCY
Lempira (HNL)
EMPLOYER TAXES
16.60%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Spanish

What to know before you hire in 

Honduras

Little bit confused about hiring in Honduras? Like anywhere else, it’s got different labor laws than you’re probably used to. Which makes things complex. But it doesn’t need to feel overwhelming. You really have two choices: Hiring people as contractors, or hiring them as employees.

If you want to successfully hire in 

Honduras

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Honduras

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Honduras

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Honduras

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Honduras

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Honduras

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Honduras

?

If you’re hiring contractors in 

Honduras

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Honduras

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Honduras

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Honduras than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Honduras.

Taxes in 

Honduras

Employer tax

Employer Contributions

  • 16.60%

Individual tax

Leave

Paid Time Off (PTO)

Paid leave depends on the length of service completed:  

  • Up to 1 year of employment- 10 days
  • 1-2 years of employment- 12 days
  • 2-3 years of employment- 15 days
  • 4+ years of employment- 20 days

In addition to the leave, the employee is entitled to vacation pay, which must be paid out at least 3 days before the leave is taken.

Public Holidays

There are 11 public holidays.

Sick Days

  • Sick leave starts from the third day of sickness.   
  • Employees are entitled to up to 26 weeks of sick leave per year and can be extended up to 52 weeks. 
  • Pay is 66% of the average of the previous 3 months or 100% if the employee is hospitalized and has no dependents.  
  • Pay is split equally between the employer and social security.  

Maternity Leave

Mothers are entitled to 10 weeks of 100% paid leave, with salary partially covered by the employer and the IHSS. 4 weeks of leave should be taken before delivery and 6 weeks should be taken after.

Paternity Leave

There are no statutory laws for paternity leave.

Parental Leave

There are no statutory laws for parental leave.

Other Leave

None.

Marriage Leave

None.

Bereavement Leave

None.

Termination

Termination Process

Termination procedure depends on if it is a case of dismissal with just cause or wrongful dismissal.  

Dismissal with just cause is effective from the moment the employer notifies the employee; however, the employee does have the right to take the employer to court and require they provide evidence to prove their dismissal was fair. If the employer cannot prove dismissal with cause, the employee is entitled to compensation for damages and losses and accrued unpaid wages. The employee also has the right to file a claim against the employer and request reinstatement.  

If termination is deemed wrongful and the employee is reinstated, the employer is not required to pay termination benefits.

Notice Period

The notice period is determined by the length of employment:

  • Less than 3 months – 24-hour notice
  • More than 3 months but less than 6 – 1 weeks’ notice
  • More than 6 months but less than 1 year – 2 weeks;’ notice
  • More than 1 year but less than 2 years – 1 months’ notice
  • More than 2 years – 2 months’ notice

Severance Pay

For employees who were dismissed for just cause, there is no severance pay entitlement.

For employees who were dismissed for unjust cause or dismissed indirectly (i.e. failure on the part of the employee to pay wages on time) are entitled to severance pay:

  • 3-6 months of employment- 10 days of wages
  • 6-1 year of employment- 20 days of wages
  • 1 or more years- 1 months’ salary for every year of employment, capped at 25 months.

Probation Period

None.

Employee requirements in 

Honduras

Working Hours

A full-time work week is 44 hours or hours a day. In addition, the maximum number of days in a workweek is 6.

Overtime

Overtime pay is paid at the rate of 137.5% of the regular pay. 


For work on a rest day, the pay rate is 200% of the regular pay.


For night work, the pay rate is 125% of the regular pay. 

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