Payroll

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Honduras

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Payroll in Honduras

Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.

Payroll at a glance

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)

Honduras minimum wage and salaries in 2026

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 figureLocal currencyUSD
Minimum wage, monthlyHNL 12,869$479
Minimum wage, hourlyHNL 67.49$2.51
Average urban income, monthly (INE 2025)HNL 11,700$436
Median contractor pay through Ontop, monthlyn/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.

Hiring in Honduras: employee or contractor?

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.

What an employee costs you in Honduras

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:

  • Two extra salaries a year: the Aguinaldo and the 14th month, about HNL 40,000 at this salary.
  • Roughly 10.5% in employer contributions: IHSS, RAP pension and INFOP, filed by the last day of every month.
  • Auxilio de Cesantia: one month of salary per year of service once the employee passes three months.
  • Paid leave that grows with tenure: 10 working days of Vacaciones in year one, rising to 20 after six years.

All of it assumes a registered employer in Honduras filing with SAR and IHSS.

The contractor route with Ontop

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.

When an employee is still the right call

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

Which one fits your hire?

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.

Hire contractors with Ontop

See the full side-by-side comparison

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What it takes
Employee
Contractor with Ontop
Setup
Local entity or employer of record, plus registration with
Servicio de Administracion de Rentas (SAR)
IHSS (Instituto Hondureno de Seguridad Social) / RAP (Pension)
Sign a contract, yours or an Ontop template. No local registration on your side.
Employer contributions
~5% employer IHSS + ~1.5% RAP + ~3% INFOP + 1% = ~10.5%
None. The contractor handles their own taxes and social security.
Mandatory extras
Aguinaldo + 14th Month Salary
Paid leave
10 working days (1 yr) / 12 (2-3 yrs) / 15 (4-5 yrs) / 20 (6+ yrs)
Maternity leave
14 weeks (98 days) maternity
Whatever you agree in the contract.
Monthly admin
Monthly payroll - IHSS + RAP + INFOP by month-end - ISR - annual April return
One payment per invoice.
Ending the relationship
1 month/year of service (after 3 months)
Per the contract terms.
Example monthly cost
~HNL 22,100 total
for a gross salary of
HNL 20,000 gross/month
The agreed rate, plus Ontop from $49 per contractor per month.

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

Everything you need, one topic at a time

What it costs to employ someone

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.

Minimum wage and salaries

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.

Taxes, filings and deadlines

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

Mandatory benefits and leave

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

Employment contract types

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.

Common payroll mistakes and how to avoid them

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.

Ontop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.

150+

countries

$49

per contractor per month

1 run

to pay your whole team

USD

Global Account for every contractor

FAQ

Frequently asked questions

Can Ontop run payroll for employees in this country?

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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.

How much does it cost to employ someone here?

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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.

Is there a mandatory bonus or extra 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.

What taxes are withheld from an employee's pay?

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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.

Can I see the total cost before hiring?

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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.

When should I hire a contractor instead of an employee?

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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.

What are the main compliance risks?

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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.

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