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Honduras Severance Calculator 2026

Last updated: January 2026

The labor settlement (liquidación) in Honduras for 2026 is calculated using the 360-day commercial year according to the Labor Code. Components include: severance pay for unjust dismissal (1 month per year of service, up to 25 months maximum), proportional vacation (10-20 business days depending on tenure), proportional aguinaldo and décimo cuarto. The daily salary is calculated by dividing monthly salary by 30. Vacation days increase with tenure: 10 days for 1-2 years, 12 days for 2-3 years, 15 days for 3-4 years, and 20 days for 4+ years. Severance, aguinaldo, and décimo cuarto are ISR-exempt. In case of voluntary resignation, the worker receives only vacation, proportional aguinaldo, and décimo cuarto without severance.

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FAQ

What does a labor settlement include in Honduras?
A settlement in Honduras includes: severance pay (1 month per year, max 25 months, only for unjust dismissal), unused vacation (10-20 days by tenure), proportional aguinaldo, and proportional décimo cuarto. Voluntary resignation excludes severance.
How is severance pay calculated in Honduras?
Severance equals one month of salary per year of service, capped at 25 months. Partial years are calculated proportionally using the 360-day commercial year. It only applies for unjust dismissal. The salary base is the average of the last 6 months of regular salary.
How many vacation days are included in the settlement?
Vacation days in Honduras increase with tenure: 10 business days for 1-2 years, 12 for 2-3 years, 15 for 3-4 years, and 20 for 4+ years of service. Unused vacation is paid at the daily salary rate (monthly salary ÷ 30).
Does severance pay taxes in Honduras?
No. Severance for unjust dismissal is exempt from ISR in Honduras. The proportional aguinaldo and décimo cuarto in the settlement are also ISR-exempt. Compensated vacation is subject to normal ISR rules.
What is the maximum severance in Honduras?
The maximum severance in Honduras is capped at 25 months of salary, regardless of how many years you worked. This means a worker with 30 years of service receives the same severance as one with 25 years. There is no salary cap — the full average salary is used.
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