Domestic employees are those whose labor serves the needs of a household. Any employee whose labor serves the needs of a business or other profit seeking entity is not a domestic employee. When hiring employees it is important to keep in mind that there are many benefits established in the Honduran Law that are obligatory, and cannot be surrendered by the employee. This means that even if an employee signs a contract saying that they renounce their right to additional benefits, they may still claim them at a later date. The contract renouncing these benefits will be declared null and void.
Many foreigners pay wages that are higher than the customary wages.
When deciding on a salary, however, it is important to keep the legal benefits in mind. The 13th and 14th months alone result in a 15 percent pay raise. There is also some healthy vacation pay, and the severance pay can be very high if an employee has worked for a long time with the same employer. These are all things to consider when establishing a salary for your employees. Thus, accumulated inflation during the first three months of 1999 was 2.9, close to 40 percent below the 5.0 combined IPC of the first quarter 1998.