
Payroll
/
Honduras
Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
HNL L (Honduran Lempira)
Employer contributions
~5% employer IHSS + ~1.5% RAP + ~3% INFOP + 1% = ~10.5%
Minimum wage
HNL 12,869.14/month (2026) ≈ $479/month
Payment frequency
Monthly / Bi-weekly
Calendar year (Jan 1 - Dec 31)
Capital
Tegucigalpa
Timezone
CST (GMT-6)
Short answer: The minimum wage in Honduras in 2026 is HNL 12,869.14 a month (about $479). Average urban income is around HNL 11,700 a month ($436), below the formal minimum because much of the workforce is informal. Professionals paid as contractors through Ontop earn a median of $1,600 a month (111 active contracts, September 2026).
| 2026 figure | Local currency | USD |
|---|---|---|
| Minimum wage, monthly | HNL 12,869 | $479 |
| Minimum wage, hourly | HNL 67.49 | $2.51 |
| Average urban income, monthly (INE 2025) | HNL 11,700 | $436 |
| Median contractor pay through Ontop, monthly | n/a | $1,600 |
Minimum wage details: Acuerdo 233-2026 (La Gaceta 37,129, in force 2026-04-29), tripartite deal for 2026-2027, retroactive to 2026-01-01. Set by activity and company size (4 categories). Lowest non-agri figure cited: manufacturing, smallest firms L12,869.14; commerce L13,292.06; services L13,050.39; agriculture smallest L9,596.64. Raises: 6% firms <=50 staff, 7% firms 51-150 and >150 in 2026 (7.5% for >150 in 2027). Average across all sectors L14,917.20. Detailed table taken from Bloomberg Linea, not the gazette: verify against STSS table before contractual use. USD figures use exchange rates from 1 October 2026. Updated October 2026.
Next step: compare contractor rates in Honduras with other countries or estimate the full cost of an employee.
Honduras pays its employees fourteen times a year. The Aguinaldo in December and the 14th month salary in June are both mandatory, so any salary you agree on is really a monthly figure multiplied by 14, before social contributions or severance enter the picture.
For a foreign company without a local entity, that changes the question. If the work is a defined service delivered by a professional who sets their own schedule, a contractor agreement is usually the faster, cheaper and more accurate way to engage them. If the role looks like a job, it should be a job.
Take a gross salary of HNL 20,000 a month. Employer contributions add about HNL 2,100, for a monthly cost near HNL 22,100. On top of that you carry:
All of it assumes a registered employer in Honduras filing with SAR and IHSS.
Honduran law recognizes the Contrato por Obra o Servicio for independent work, and that is the agreement most cross-border teams use. Companies paying contractors in Honduras through Ontop pay a median of $1,600 a month (the middle half earn between $1,150 and $2,384), across 111 active contracts in September 2026. This is Ontop's own book of payments, not a market survey.
Ontop acts as contractor of record. You sign a compliant contract (yours or an Ontop template), get support on classification, and pay in one run. The contractor receives the money in their Ontop Global Account in USD. No local entity, no IHSS filings, no bonus months. Pricing starts at $49 per contractor per month. To compare both totals side by side, use the contractor cost calculator by country.
If you set fixed hours, require exclusivity or direct the work day to day, the relationship is employment under Honduran labour law, whatever the contract says. Hire that person as an employee. Ontop does not offer employer of record and never becomes the legal employer, so for those roles you need your own entity or a local employer. For everyone who genuinely works independently, see why teams choose an EOR alternative built for contractors.
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~HNL 22,100 total
/month
For a gross salary of
HNL 20,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~5% employer IHSS + ~1.5% RAP + ~3% INFOP + 1% = ~10.5%
Mandatory extras
Aguinaldo + 14th Month Salary
Monthly admin
Monthly payroll - IHSS + RAP + INFOP by month-end - ISR - annual April return
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~HNL 22,100 total
Example gross salary
HNL 20,000 gross/month
~HNL 16,025 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~HNL 2,100 SS
Employer contributions on that salary
Employer contributions
~5% employer IHSS + ~1.5% RAP + ~3% INFOP + 1% = ~10.5%
Employee contributions
~2.5% employee IHSS + ~2.5% RAP + income tax (ISR)
Total cost above gross
~10.5% above gross (IHSS)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~HNL 11,700 (urban average, INE 2025)
Per month
Tegucigalpa
HNL 15,000 - 50,000
~40%
San Pedro Sula
HNL 14,000 - 45,000
~35%
Monthly gross. National average salary per year:
~HNL 140,000
Minimum wage
HNL 12,869.14/month (2026) ≈ $479/month
Paid:
Monthly
Extra pay
Aguinaldo + 14th Month Salary
Both mandatory: December (Aguinaldo) + June (14th)
December and June
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to HNL 191,268 / 15% / 20% / 25%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by last day
Social security payments
April 30 (annual ISR)
Income tax
By January 31
Employee tax certificate
Constancia de Retenciones
April 30
Annual return
Declaracion del ISR
Late payment penalties
Late IHSS: 2% monthly; late ISR: 10% + interest
Who collects what
SAR
Income tax (ISR)
IHSS
Social security
Secretaria de Trabajo y Seguridad Social
Labour law
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Vacaciones
10 working days (1 yr) / 12 (2-3 yrs) / 15 (4-5 yrs) / 20 (6+ yrs)
Public holidays
~13 public holidays
Sick leave
Licencia por Enfermedad
IHSS pays from day 4 at 66%
Maternity leave
14 weeks (98 days) maternity
Full pay from IHSS
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contrato Individual de Trabajo por Tiempo Indefinido
Fixed term
Contrato por Tiempo Definido
Independent contractor
Contrato por Obra o Servicio
Collective agreements
Contrato Colectivo de Trabajo
Ending employment
Auxilio de Cesantia
How it is calculated
1 month/year of service (after 3 months)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
14th Month Salary Compliance
Risk Level: HIGH
Honduras mandates both an Aguinaldo (December) and a 14th month salary (June), each equal to 1 month of ordinary salary. Many foreign employers are only aware of the December bonus and miss the June payment. Ministry of Labour inspectors impose full back-payment plus fines.
INFOP Training Levy Non-Payment
Risk Level: MEDIUM
Honduras requires employers to contribute 1% of gross payroll to INFOP (Honduran Vocational Training Institute). This levy is commonly overlooked by international employers who focus only on IHSS and RAP. INFOP audits impose retroactive assessments with 2% monthly penalties.
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FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.