Economic Overview, San Pedro Sula Industrial Engine & Nearshoring
Honduras combines prime geographic proximity to the US, modern deepwater port logistics (Puerto Cortés), and competitive nearshore engineering and BPO talent.
Key Economic Sectors
- Nearshoring BPO & IT Services: Rapidly growing customer experience and software support centers in San Pedro Sula and Tegucigalpa.
- Textile & Apparel Manufacturing: Major export manufacturing under CAFTA-DR supply chains.
- Coffee & Agribusiness: Central America's largest coffee producer, palm oil, and aquaculture (tilapia and shrimp).
Employment Contracts, Labor Code & 90/85 Workforce Quotas
Regulated by the Código del Trabajo de Honduras.
- National Workforce Quota: Under Article 11, at least 90% of an employer's workforce must be Honduran citizens, and at least 85% of total payroll must be paid to Hondurans.
- Probation Period: Maximum statutory probation is 60 days (2 months).
Working Hours, Overtime & Night Shift Surcharges
- Standard Daytime Hours: 44 hours per week (8 hours/day over 5 days + 4 hours Saturday, computed as 48h for pay).
- Night Shift: 36 hours per week (6 hours/day between 19:00 and 05:00). Surcharge of **25%** applies.
- Overtime: 125% for daytime overtime; 150% for night overtime; 175% for mixed shift; **200% (double time)** on rest days and public holidays.
Annual Vacation (Seniority Tiers), Holidays & Maternity
Annual Paid Vacation (*Vacaciones*)
- 1 Year of Service: 10 consecutive working days.
- 2 Years of Service: 12 consecutive working days.
- 3 Years of Service: 15 consecutive working days.
- 4+ Years of Service: 20 consecutive working days.
Maternity Protections
10 weeks (70 calendar days) (4 weeks prenatal + 6 weeks postnatal) paid at 100% (66% funded by IHSS and 34% by employer). Absolute dismissal protection applies.
13th & 14th Salaries, IHSS Social Security & RAP
Mandatory 13th & 14th Salaries
- 13th Month (*Décimotercer Mes*): 1 month's salary paid in **December**.
- 14th Month (*Décimocuarto Mes - Decree 135-94*): 1 month's salary paid in **June** (exempt from taxes and IHSS).
Social Security (IHSS) & RAP Breakdown
| Institution / Fund | Employer Share | Employee Share | Description |
|---|---|---|---|
| Social Security (IHSS - Health & Maternity) | 5.0% | 2.5% | Capped at statutory monthly salary ceiling |
| Social Security (IHSS - Pension & Disability) | 3.5% | 2.5% | Old-age retirement pension fund |
| Private Contributions Regime (RAP) | 1.5% | 1.5% | Worker housing & severance reserve fund |
| Total Statutory Contributions | ~10.0% | ~6.5% | Total monthly statutory payroll burden |
Termination, Notice & Severance (*Auxilio de Cesantía*)
- Notice Periods: 24 hours (< 3 mo), 1 week (3–6 mo), 2 weeks (6–12 mo), 1 month (1–2 yrs), or 2 months (> 2 yrs service).
- Severance Pay (*Auxilio de Cesantía*): Statutory formula scaling to 1 month's salary per year of service (capped at 25 years).
Why Use an Employer of Record (EOR) in Honduras
- Rapid CST Nearshore Deployment: Onboard software engineers and BPO agents in San Pedro Sula in days.
- IHSS, RAP & 14-Salary Compliance: Automated management of 13th/14th salaries, RAP reserves, and SAR tax filings.
- 90/10 Workforce Ratio Alignment: Complete compliance with national employment laws.
Hiring in Honduras? Key Resources
Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks:
