#Honduras 🇭🇳 #BDS_LaborAlert: Government of Honduras Expands Telework Due to Surge in SarCOVID-19 Cases
On July 27, 2025, the Secretariat of Governance, Justice and Decentralization of Honduras...
The “25th Fortnight Law” was approved by the Legislative Assembly on January 14, 2026 with 59 votes in favor, creating a special economic benefit known as the “25th Fortnight,” which consists of supplementary income equivalent to 50% of the basic or nominal monthly salary. This benefit applied to workers whose monthly salary is US$ 1,500.00 or less.
This benefit has the following characteristics:
- It is independent of ordinary salary and other labor benefits.
- It does not constitute a basis for calculating other benefits.
- It is exempt from income tax withholdings, ISSS, or AFP contributions.
- It is non-garnishable.
For the private sector, the law establishes a special and differentiated regime, as payment will be voluntary during 2026. However, companies that choose to grant the benefit may access a tax incentive consisting of a 100% tax credit applicable against corporate income tax for fiscal year 2026. In the case of the public sector, the Government stated that it will be the first to comply with the measure, granting the benefit to all public officials in 2026.
According to the approved decree, the supplementary income will be equivalent to 50% of the worker’s monthly salary and will be paid between January 15 and January 25 of each year. To qualify, workers must meet the same eligibility requirements applicable to the statutory Christmas bonus (aguinaldo) or additional cash compensation.
In this context, we consider it essential for companies to:
- a) Financially assess the feasibility of granting the benefit in 2026;
b) Coordinate with accounting and tax departments to ensure the payment is property documented; and
c) Train HR and Payroll teams on the specialized labor and tax treatment of this benefit.
Please contact us if you have questions or require assistance regarding the implementation of the provisions of this new law.
