What severance are you owed in Honduras?
If you are dismissed without just cause in Honduras, the Labor Code entitles you to notice pay (preaviso, art. 116), severance (auxilio de cesantía, art. 120 as amended by Decree 150-2008), vacation earned but never taken plus the prorated fraction (arts. 345-350), and the prorated 13th month (Decree 112-82) and 14th month (Decree 135-94) bonuses. This calculator follows the convention of the official STSS (Ministry of Labor) guide: every month counts as 30 days.
| Item | Unjustified dismissal | Voluntary resignation |
|---|---|---|
| Notice pay | Yes, by seniority | No: the worker owes the notice |
| Severance (cesantía) | Yes, capped at 25 months | Only 35% with 15+ years of service |
| Untaken and prorated vacation | Yes | Yes |
| Prorated 13th and 14th month | Yes | Yes |
Dismissal with just cause pays no notice and no severance; vacation and the prorated bonuses are always due.
2026 statutory scales
| Seniority | Notice pay (art. 116) | Severance (art. 120) |
|---|---|---|
| Under 3 months | 24 hours | Not owed |
| 3 to 6 months | 7 days | 10 days |
| 6 months to 1 year | 14 days | 20 days |
| 1 to 2 years | 30 days | 30 days per year |
| Over 2 years | 60 days | 30 days per year, capped at 25 months |
From one year onward, severance equals one month of salary per year worked; the final fraction is prorated (days ÷ 12 = days of salary). Vacation grows with each year of service:
| Service year | Working days | Divisor for the fraction |
|---|---|---|
| 1st | 10 | 36 |
| 2nd | 12 | 30 |
| 3rd | 15 | 24 |
| 4th or later | 20 | 18 |
How to use the calculator
- Pick the termination cause: unjustified dismissal or voluntary resignation.
- Enter your monthly salary (6-month average if it varies) and your start and termination dates.
- Tick the box if you never took the vacation from your last completed year.
- Turn on the STSS-guide method to pay notice and severance at the average salary (base × 14 ÷ 12).
Worked example
Unjustified dismissal, salary of L20,000, hired on 01/01/2023 and dismissed on 30/06/2026: 3 full years plus a 180-day fraction. Daily salary: 20,000 ÷ 30 = L666.67.
- Notice pay (over 2 years): 60 days × 666.67 = L40,000.00
- Severance: 3 years × 30 = 90 days, plus the fraction 180 ÷ 12 = 15 days; 105 days × 666.67 = L70,000.00
- Vacation: 15 untaken days from the 3rd year (L10,000.00) plus the 4th-year fraction, 180 ÷ 18 = 10 days (L6,666.67) = L16,666.67
- Prorated 13th month (January to June 2026): 180 ÷ 12 = 15 days = L10,000.00
- 14th month with the full July 2025 to June 2026 period: L20,000.00
- Estimated total: L156,666.67
Under the STSS-guide method the base rises to 20,000 × 14 ÷ 12 = L23,333.33 (L777.78 per day): notice pay becomes L46,666.67 and severance L81,666.67.
Frequently asked questions
What do I get if I resign?
Untaken and prorated vacation plus the prorated bonuses. Workers who resign after 15 or more years of continuous service also collect 35% of the severance they would have earned (Decree 150-2008).
What is the 25-month severance cap?
Decree 150-2008 (Official Gazette 31,753) raised the ceiling from 15 to 25 months of salary: beyond 25 years of service, severance stops growing.
Why does the official STSS guide pay more?
Because it settles notice and severance at the average salary: the monthly base times 14 ÷ 12, plus the 6-month average of overtime and habitual bonuses and up to 30% of in-kind salary. This calculator offers the 14 ÷ 12 factor as a toggle; the extras must be added separately.
Does the Labor Reserve Fund change my payout?
Decree 47-2024 (in force since June 2024) requires employers to deposit 4% of payroll into individual RAP accounts that pre-fund severance. That balance is deducted from the final payment, but your total entitlement stays the same.
Is the settlement taxed?
The 13th and 14th month bonuses are exempt from income tax up to 10 average minimum wages (L149,172 in 2026, using the L14,917.20 average of Agreement SETRASS-233-2026); the excess is taxed. As general practice they pay no IHSS or RAP contributions.
This tool gives an informational estimate under the 2026 rules; it is not legal advice, and the STSS validates exact settlements for free. Review it every year: minimum wages and official criteria change.