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Severance and notice (cesantía) calculator (Honduras)

Calculate your severance in Honduras: the notice pay (art. 116) and the severance aid (art. 120, one month of salary per year, capped at 25 or 15 months) of the Labor Code.

Average ordinary salary of the last 6 months (Labor Code art. 123).

Full years of continuous service.

Months of the current year, from 0 to 11.

Microenterprises (10 workers or fewer) have a 15-month cap.

Fill in the fields to see the result instantly.

Assumptions and method

  • The total adds two distinct components: the notice pay (Labor Code art. 116) and the severance aid (Labor Code art. 120).
  • The notice period is paid in full in cash when the employer dismisses without notice (Labor Code art. 118): 24 hours (under 3 months), 1 week (3 to 6 months), 2 weeks (6 months to 1 year), 1 month (1 to 2 years), and 2 months (over 2 years).
  • The severance aid is 10 days (3 to 6 months), 20 days (6 months to 1 year), and, from 1 year on, one month of salary per year of service, proportional for fractions (Labor Code art. 120).
  • The severance aid cap is 25 months of salary in general and 15 months for microenterprises of 10 workers or fewer (Labor Code art. 120 lit. d and art. 120-A).
  • The base is the average of the salaries of the last 6 months (Labor Code art. 123). This calculator uses the monthly salary you enter as that average.
  • The daily salary is the monthly salary ÷ 30; the Code fixes the base but not this arithmetic, so it is a disclosed convention.
  • At least 3 months of continuous service are required to be entitled to the severance aid (Labor Code art. 120).
  • The severance aid and the notice pay are outside the IHSS and RAP contribution base. Their ISR exemption is not confirmed by a primary source; check with the SAR before assuming it.

What this calculator does

Calculates your dismissal settlement in Honduras by adding two distinct components of the Labor Code: the notice pay (art. 116) and the severance aid (art. 120).

The notice is the advance warning before dismissal; if the employer dismisses without giving it, it is paid in full in cash (art. 118). The severance aid is one month of salary per year of service, capped at 25 months (or 15 for microenterprises).

Who it is for

  • Workers who want to estimate their settlement in case of unjustified dismissal.
  • Employers and HR staff who calculate final settlements.
  • Labor advisors and students who need a clear, traceable calculation.

What information you need

  • Your monthly salary (average ordinary salary of the last 6 months, art. 123).
  • The full years of continuous service and the additional months (0 to 11).
  • The company size: general (25-month cap) or microenterprise of 10 workers or fewer (15-month cap).

How it is calculated

Notice pay (art. 116): 24 hours if service is under 3 months, 1 week from 3 to 6 months, 2 weeks from 6 months to 1 year, 1 month from 1 to 2 years, and 2 months over 2 years. It is paid in full in cash (art. 118).

Severance aid (art. 120): 10 days from 3 to 6 months, 20 days from 6 months to 1 year, and, from 1 year on, one month of salary per year of service, proportional for fractions.

Severance aid cap: 25 months of salary in general; 15 months for microenterprises of 10 workers or fewer (art. 120-A).

The daily salary for the day-based tiers is the monthly salary ÷ 30 (disclosed convention). The total is notice pay + severance aid.

Formula

Daily salary
daily salary = monthly salary ÷ 30
Severance aid (over 1 year)
aid = monthly salary × min(total years, cap) [cap 25 or 15]
Total
total = notice pay + severance aid

Worked example

You earn L15,000 per month, have 5 full years of service, and are dismissed without cause at a general company.

  1. Notice pay: over 2 years → 2 months of salary = L15,000 × 2 = L30,000.00.
  2. Severance aid: 1 month per year × 5 years = L15,000 × 5 = L75,000.00 (below the 25-month cap).
  3. Total = L30,000.00 + L75,000.00 = L105,000.00.

Your settlement is L105,000.00: L30,000.00 of notice pay and L75,000.00 of severance aid.

How to interpret the result

The notice pay and the severance aid are separate components: the first compensates the lack of advance notice, the second compensates the length of service.

When the aid reaches the cap (25 months in general, 15 for a microenterprise), extra years no longer increase the amount; the result shows the months actually paid.

The base is the average of the salaries of the last 6 months (art. 123); this calculator uses the monthly salary you enter as that average.

The severance aid and the notice pay are outside the IHSS and RAP base. Their ISR exemption is not confirmed by a primary source; check with the SAR before assuming it.

Common mistakes

  • Confusing the notice pay with the severance aid, or adding only one of the two components.
  • Forgetting the aid cap (25 or 15 months) for very long tenures.
  • Computing the severance aid with under 3 months of service: below that minimum there is no entitlement (art. 120).
  • Withholding ISR, IHSS, or RAP from the severance aid: it is outside the contribution base, and its ISR treatment must be confirmed with the SAR.

Frequently asked questions

How is severance (cesantía) calculated in Honduras?

It adds two Labor Code components: the notice pay (art. 116), paid in full if the employer dismisses without notice (art. 118), and the severance aid (art. 120), which is one month of salary per year of service, capped at 25 months (or 15 for microenterprises).

What is the notice-period scale?

24 hours if service is under 3 months, 1 week from 3 to 6 months, 2 weeks from 6 months to 1 year, 1 month from 1 to 2 years, and 2 months over 2 years (art. 116).

Does the severance aid have a cap?

Yes. The general cap is 25 months of salary (art. 120 lit. d) and drops to 15 months for microenterprises of 10 workers or fewer (art. 120-A). Once at the cap, extra years no longer raise the amount.

What base salary is used?

The average of the salaries of the last 6 months of the contract (art. 123 lit. b). This calculator uses the monthly salary you enter as that average.

What is the minimum service to earn severance?

Three months of continuous service. Below that minimum there is no severance aid (art. 120).

Does severance pay ISR, IHSS, or RAP?

The severance aid and the notice pay are outside the IHSS and RAP contribution base. Their ISR exemption is not confirmed by a primary source; this calculator withholds no ISR and recommends checking with the SAR.

How is proportional severance calculated?

For over one year, the aid is the monthly salary × (years + months ÷ 12), up to the cap. With L15,000 and 2 years and 6 months: L15,000 × 2.5 = L37,500.00, plus the 2-month notice pay (L30,000.00): total L67,500.00.

What happens with under one year of service?

The aid is a fixed number of salary-days: 10 days from 3 to 6 months and 20 days from 6 months to 1 year (art. 120). With L15,000 (daily salary L500) and 8 months: aid 20 × L500 = L10,000.00 and 2-week notice pay (14 × L500 = L7,000.00), total L17,000.00.

Sources

  • Código del Trabajo de Honduras (Decreto 189-1959), arts. 116-123 — preaviso y auxilio de cesantía — Tribunal Superior de Cuentas (TSC), Honduras (Art. 116: preaviso de 24 horas (<3 meses), 1 semana (3-6 meses), 2 semanas (6 meses-1 año), 1 mes (1-2 años), 2 meses (>2 años). Art. 118: el patrono que despide sin preaviso paga su equivalente completo. Art. 120: auxilio de 10 días (3-6 meses), 20 días (6 meses-1 año), 1 mes de salario por año (>1 año, proporcional por fracciones), con tope de 25 meses (lit. d); 15 meses para microempresas de 10 trabajadores o menos (art. 120-A, Decreto 150-2008); mínimo 3 meses de servicio. Art. 123 lit. b: base = promedio de los salarios de los últimos 6 meses. El divisor mensual÷30 para el salario diario es práctica (verified-secondary). La exención de ISR del auxilio de cesantía no está confirmada por fuente primaria (UNVERIFIED); consultar con la SAR. See docs/research/hn-labor-rules.md, section 8.)
Last reviewed:
July 26, 2026
Calculation version:
1.0.0

Important notice

The results of these calculators are informative estimates and may differ from official calculations. They do not constitute legal, tax, or financial advice. Always verify with the competent institutions or a professional.

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